05 Feb The problems faced by UK businesses in the pursuit of “Frictionless Trade” in a post Brexit landscape.
The reality of Brexit
The implications of the Brexit trade deal and the impact of the Trade and Cooperation Agreement (TCA), with the European Union are being felt by businesses up and down the country as food deliveries are delayed for not having the right customs paperwork, logistics companies halting the shipment of goods and retailers discovering their supply chains have been negatively impacted or are even no longer viable.
After decades inside the European Union’s customs union and single market, Britain’s businesses unearth new challenges and changes every day. For many businesses, the reality of the post Brexit landscape involves a logistical, regulatory and administrative burden for which they were wholly unprepared.
Is there a solution?
Setting up a new business entity in an EU country is an option that can provide easy access to the European Single Market, reduce the logistical and administrative burden and maintain your Company’s competitive edge.
The benefits
When a UK company establishes a sister business in the EU or moves its headquarters to the EU, they are able to declare that they are an EU company. So while the goods and services that they transfer between the UK and the EU will be subject to the changes associated with Brexit and the TCA, all the goods and services that they transfer within the EU can move around frictionlessly.
Having a base in the EU post-Brexit will assist in significantly reducing the amount of Brexit-related paperwork and time spent on it and minimise tariffs. Furthermore, it makes it easier to hire staff in the EU and businesses can relocate any existing staff who may be unable to work in the UK after the transition period, to any new EU base.
A significant number of EU countries are actively encouraging UK businesses to set up bases within them. Many have government-backed websites that explain the benefits of incorporating within their respective jurisdiction and how this will mitigate the negative impact of Brexit.
Where you ultimately decide to base any new EU entity should be dictated by the particular needs of your business and the ease of doing business within a particular country. The World Bank Doing Business Ranking offers a useful guide as to how easy it is to do business in different countries around the world. The rankings take into consideration the regulatory environment within a particular country and how conducive that is to starting and operating a local company.
How Aquitas can help you
Aquitas Law’s commercial law team can assist in setting up a new business entity in a variety of EU countries and help navigate the raft of tax and other incentives to decide which location is best suited for the needs of your business.
Call us on 0207 099 4444 or email us @ enquiries@aquitaslaw.com