EU Plans ‘28th Regime’ Business Passport to Simplify Expansion Across Europe

Dublin: A new European Union business framework, often referred to as the “28th Regime”, is set to make it easier for companies to operate across all EU member states under a single legal framework. According to a new study commissioned by the Compliance Institute, the proposal could significantly boost the growth of Irish businesses, although experts have stressed the need for strong safeguards to prevent misuse.

The proposed system would allow companies to establish and operate businesses throughout the European Union under a common set of rules, rather than complying with 27 separate national company law regimes. The EU aims to introduce the new framework by 2028.

Single Legal Framework for EU Expansion

Under the proposed “28th Regime,” businesses would be able to establish operations across EU member states through a single digital legal framework, with company registration expected to take as little as 48 hours.

Currently, startups seeking to expand across Europe must navigate different corporate laws and regulatory requirements in each member state, creating significant administrative and legal burdens. These challenges have often led European startups to relocate to the United States to access funding and scale their businesses more easily.

Strong Support from Irish Businesses

The Compliance Institute surveyed more than 120 legal, compliance and business experts as part of its research.

The findings show:

• More than 40% believe the new framework would significantly support the growth and international expansion of Irish companies.

• 97% said it would reduce administrative and regulatory burdens for businesses operating across multiple EU jurisdictions.

Respondents also identified several key benefits, including:

• Greater regulatory consistency across the EU.

• Easier cross-border business expansion.

• Reduced legal and compliance complexity.

• Improved competitiveness for European startups.

‘A Game Changer’ for Irish Firms

Compliance Institute Chief Executive Micheál Kavanagh described the proposal as a potential “game changer” for Irish businesses.

He said the new framework would enable entrepreneurs to establish and grow businesses throughout the European Union under a simpler and more efficient legal system, helping innovative companies scale more quickly.

However, Kavanagh stressed that the legislation must include robust safeguards to prevent abuse of the new regime.

The proposed 28th Regime would not replace the existing company laws of the 27 EU member states. Instead, it would operate alongside national legal systems as an optional framework for eligible businesses.

Kavanagh noted that one of the biggest challenges will be ensuring smooth interaction between national legislation and the new EU-wide framework.

He also emphasised that important national protections—including employment rights, consumer protection standards, taxation and social security rules—must not be weakened.

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