EU advances digital 'EU Inc.' corporate form and harmonized insolvency rules for Hungary

The European Commission presented a regulation on 18 March 2026 proposing an optional, fully digital legal form for companies called “EU Inc.” The uniform form would sit alongside national company types across all Member States, be directly applicable from 2028 and aim to simplify incorporation, share transfers and capital changes by eliminating many formalities, including notarial requirements. Designed similarly to a German GmbH but with features of a stock corporation, the draft has drawn criticism from notarial chambers for reducing the notary’s role.

Separately, the EU has adopted Directive (EU) 2026/799 to harmonise substantive insolvency law, which Hungary must transpose by 22 January 2029. The directive introduces minimum standards for avoidance actions, asset‑tracing tools, pre‑pack sale procedures and strengthened directors’ duties, while emphasizing digital access to registers. It is intended to reduce the fragmentation of insolvency regimes across the EU, improve legal certainty for creditors and lower transaction costs in cross‑border restructurings.