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INESC Response on the 28th Regime EU Corporate Legal Framework

Policy Paper

A summary report capturing the key discussions, findings and follow-up actions from the INESC Brussels HUB’s 2026 Summer Meeting on European research infrastructure priorities.

Executive summary

INESC institutes welcome the European Commission’s initiative to create an optional EU-wide corporate legal framework, the “28th Regime”, to help innovative companies set up, scale and operate across the Single Market. For INESC’s spin-offs and industry collaborations, a predictable, digital-by-default company form that investors trust could cut transaction costs, speed up cross-border growth and unlock private capital. INESC stresses that the regime must be optional and modular, compatible with national systems, linked to the European Innovation Act, and suited to SMEs, without weakening Member State standards on labour, taxation or the environment, or adding new bureaucracy.

Key takeaways

  • An optional "EU Innovation Company" with fully digital incorporation in 48 hours and a pan-EU identity would help research-based ventures scale across the Single Market.
  • Harmonised capital rules, including standard share classes, EU-recognised convertible instruments and portable employee ownership, would make early-stage fundraising faster and more attractive to international investors.
  • Digital-by-default processes, with once-only reporting and standard templates, would cut compliance costs and free resources for R&D.
  • Standard EU templates for transferring IP from RTOs and universities would reduce negotiation costs and delays in creating spin-offs.
  • An "honest failure" safe harbour and a modular rollout compatible with national regimes would encourage researchers to become entrepreneurs without undermining what already works.

Authors & download

Authors: INESC Brussels HUB Team
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Last reviewed / validation

17/08/2026