Towards an EU-wide company status: a step to reduce fragmentation for innovative firms
Support is building in Brussels for the creation of an EU-wide company status, an initiative intended to simplify how businesses operate across the single market. The proposal would allow companies to register and function under a single European legal framework, rather than navigating 27 national systems for incorporation, reporting, and compliance.
According to the Commission and supporters of the idea, legal fragmentation remains a major barrier to scale-up in Europe, particularly for innovative and research-driven companies. While the EU has long had a single market in principle, firms expanding beyond their home country still face duplicated administrative requirements, legal uncertainty, and higher costs compared with competitors in the US or China.
The proposed EU-wide status is being framed as a practical tool to improve competitiveness, especially for start-ups and scale-ups seeking to grow quickly across borders. Advocates argue that reducing legal complexity could make Europe more attractive for investment, talent, and long-term company building, complementing other initiatives such as the Competitiveness Fund, the Biotech Act, and reforms to research and innovation funding.
However, the initiative is still at an early stage. Key questions remain about how the new status would interact with national company law, taxation, labour rules, and social protections. Some member states have expressed caution, concerned about loss of control or unintended consequences for national legal systems.
For health and life sciences companies in particular, the discussion is notable. These sectors often need to operate across multiple countries from an early stage, whether for clinical research, regulatory approvals, or market access. A genuinely workable EU-wide company status could help reduce friction and support more coherent growth across Europe.
The coming months will determine whether political momentum translates into a concrete legislative proposal, and how ambitious the final design will be.
