EU-INC 28th Regime: AI Tools for European Startup Compliance
Source: Dev.to
“If you zoom out and compare Europe’s home‑grown giants to the U.S., the gap is brutal.”
- U.S. – > 10 companies > $1 trillion (Nvidia, Apple, Microsoft, Alphabet, Amazon, Meta …)
- Europe – 0 companies > $1 trillion; the largest sit at $300‑350 bn (Nasdaq)
- Result: No European firm in the global top‑25 by market cap
The problem isn’t talent or ideas – it’s the legal & bureaucratic maze that European startups must navigate, while American founders operate on a single, unified legal playing field.
The 28th Legal Regime & EU‑INC: A Fix in the Making
“That is exactly what the proposed 28th regime and the EU‑INC legal form are trying to fix.”
Why it matters
| Issue | Current Situation | Impact |
|---|---|---|
| Cross‑border VC | 23.1 % of VC inflows (2007‑2020) were cross‑border (Economy & Finance) | Capital stays in national silos |
| Early‑stage pan‑EU funding | “EU‑INC is a proposal for a single, standardised company form that works the same in every EU country.” |
Core Components
- One digital EU‑level registry – API‑driven, “once‑only” data principle, English‑first UI.
- One set of corporate rules – identical across all member states.
- One standard investor contract – EU‑FAST (Fast, Accessible, Simple, Transparent).
- One pan‑European employee stock‑option plan – EU‑ESOP.
Optional & digital‑first – founders can still choose a national form; tax & labour law remain local.
How it works (the “Maria & Jeroen” story, re‑imagined)
| Step | Traditional Path | EU‑INC Path |
|---|---|---|
| 1. Choose jurisdiction | Pick Belgium, NL, PT, etc. | Choose EU‑INC (single EU jurisdiction) |
| 2. Incorporation | Notary visits, multi‑language paperwork, weeks of waiting | Online registration, sub‑24‑hour incorporation, “Bureaucracy is, at its core, a massive, messy information‑processing problem.” |
What AI can do
- Read & summarise unstructured legal & policy texts.
- Map regime differences (e.g., Belgium vs. Netherlands vs. Germany).
- Trigger reminders & workflows when rules change.
- Provide “always‑on co‑pilot” for founders, handling compliance so they can focus on product building.
First AI Movers – Our Edge
“Use AI to do the heavy lifting on understanding and monitoring the system, so founders and executives can focus on building the business.”
- AI‑driven regulatory monitoring – real‑time alerts on EU‑level and national rule changes.
- Automated document generation – EU‑FAST contracts, ESOP grant letters, filing forms.
- Workflow orchestration – “once‑only” data entry, automatic propagation to all required national portals.
Bottom Line
- The 28th regime + EU‑INC = a single, digital, optional corporate form that removes the legal fragmentation holding Europe back.
- AI = the infrastructure layer that makes the regime practical, keeping founders out of the paperwork swamp and into the growth race.
If Europe can give its innovators the same legal simplicity the U.S. enjoys, the continent can finally close the trillion‑dollar gap.
Why AI for Europe’s Emerging Legal Framework?
Design hyper‑personalised AI systems that:
- Continuously track EU‑wide and national regulatory developments.
- Monitor proposals, impact assessments, and consultations around the 28th regime, EU‑INC, stock‑option frameworks, and AI‑related regulation.
- Alert you when something relevant to your entity, country, or sector changes.
- Translate legal and policy language into operational decisions.
“If we switch to EU‑INC, how does that change our VC docs, employee equity, and registration footprint?”
“We’re a Dutch AI SaaS company with employees in Spain and Poland. What combination of EU‑INC + local rules makes most sense?”
Automate the Boring (but Risky) Parts
- Draft standard investor documents from the EU‑FAST template.
- Generate ESOP offer letters aligned with EU‑ESOP principles and local labour/tax constraints.
- Create compliance checklists and calendar reminders for filings, board approvals, and shareholder actions.
Keep Founders & Executives “Ambiently Aware”
We don’t fire‑hose you with every policy tweet. Instead we surface:
- What changed
- Why it matters
- What you should (or shouldn’t) do this quarter
The goal isn’t to replace lawyers or tax advisors; it’s to make their work targeted and efficient, while giving founders a live map of the regulatory landscape.
Preparing for EU‑INC (or Whatever Becomes the Dominant Standard)
- Where are you incorporated?
- Where do you actually operate? (offices, remote employees, customers)
- Which jurisdictions already create friction for fundraising, hiring, or ESOPs?
AI can help you build a single, living inventory of entities, contracts, and obligations.
Scenario Simulation
“If we were EU‑INC instead of a national BV/SAS/GmbH, what would change for:
- investor onboarding
- future fundraising rounds
- employee stock options
- cross‑border expansion?”
This lets you prepare for the 28th regime before it formally launches.
Even Before EU‑FAST and EU‑ESOP Are Law
- Move toward standardised terms in SAFEs / convertibles.
- Harmonise your ESOP logic across countries as far as local regimes allow.
- Use AI to keep all versions, templates, and local variations consistent.
When a pan‑European standard lands, you’ll be ready to migrate with fewer surprises.
Treat Regulatory Awareness Like Security or Uptime
- Monitored continuously
- Surfaced in dashboards, not hidden PDFs in email
- Supported by AI agents that scan, summarise, and route issues to the right humans
That’s the kind of system First AI Movers builds: quietly running in the background so you never get blindsided by a regulatory change that affects funding, hiring, or operations.
The Three Transformative Changes EU‑INC & the 28th Regime Promise
- A single, credible legal chassis for European startups to scale on.
- A structural boost for cross‑border capital and talent flows.
- A clear standard around which tools, advisors, and AI systems can be built.
Once that standard exists, AI stops being just an “innovation topic” and becomes infrastructure for navigating Europe as one market:
- Founders can incorporate, fundraise, and hire across borders with far less friction.
- AI agents can encode and maintain the complexity so humans don’t have to.
- Systems like those we build at First AI Movers keep you compliant, informed, and strategically ahead, instead of eternally catching up.
The Future We’re Building
“If Europe wants its own trillion‑dollar champions, it needs both:
- Better rails (EU‑INC, 28th regime)
- Better intelligence (AI systems that help you live on those rails without losing your mind).”
A Europe where legal scale and AI literacy are givens, and founders can finally compete as Europe rather than as 27 fragmented markets.
Dr. Hernani Costa
Founder & CEO, First AI Movers
Originally published on First AI Movers.
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First AI Movers is part of Core Ventures.