The 28th Regime is an EU proposal for a corporate legal framework designed to simplify and update the legal environment for innovative companies operating in the EU.
The project is part of the larger 2025 Competitiveness Compass policy, which aims to foster innovation and growth in the EU's economy. The objective of the proposal is to create a legal framework that will sit alongside and in addition to the existing national legal frameworks of the 27 member states. Companies will have the option to operate under this new legal framework, or under existing national frameworks.
Key elements of the 28th Regime are:
- A single, harmonised legal framework
- Will co-exist with national laws
- Will enable uniform rules for the conduct of cross-border business
- Will be an opt-in system
Scope and Objectives
The aim of the 28th Regime is to promote a single set of rules applicable to the setting up, structuring and operation of companies.
It is intended to be a flexible set of laws that will cover important areas of commercial law, including:
- Company law
- Insolvency law
- Labour law
- Tax law
Why the policy
The proposed regime represents a recognition that the fragmentation of national legal systems presents a serious obstacle for companies seeking to scale-up in the EU. The 28th Regime will allow businesses to opt for a standard legal framework across the EU with the aim of reducing administrative burdens and compliance costs and facilitating cross-border growth for innovative companies.
Public Consultation
A public consultation on the 28th Regime is currently underway and will conclude on September 30, 2025. The Commission is looking for feedback on:
- The Regime's scope and structure
- How it will work with national laws
- Possible benefits and risks
- How it will be implemented
Comments can be made through the Commission's "Have Your Say" portal: Link
After reviewing the responses to the consultation and gathering additional input from stakeholders, a legislative proposal is scheduled to be presented in early 2026.
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