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Alternatives for UK Companies After Brexit

Alternatives for UK Companies After Brexit

The UK exiting the European Union will have a huge impact on English companies with ties to businesses in EU member states. However, there are various alternatives these companies can rely on, one of the simplest ones referring to moving or setting up their operations in other EU states. Among these countries, the Netherlands is by far one of the most appealing when it comes to relocating a business from the UK.

UK companies have several options they can resort to if they want to relocate to the Netherlands and our company formation specialists explain them below. We can also help those who want to open a Dutch company no matter the activity they want to undertake.

What are the main alternatives for UK companies once Brexit is completed?

The UK’s government decision to exit the European Union will have a great impact on both local companies and EU-based companies once it happens. While EU companies will find it difficult to enter the UK, UK companies will also find harder to carry out with their trading activities with companies in EU member states. However, these companies have several solutions, among which the most plausible refer to:

  1. the UK government entering an agreement with the EU in terms of trading relations;
  2. the UK government entering bilateral agreements with each country of the European Union;
  3. the UK following the European Economic Area (EEA) and the European Free Trade Association (EFTA) models;
  4. UK companies establishing their presence in EU member states under the form of subsidiaries or branch offices.

While the first three options leave UK companies to the hand of the government, the last one enables them to continue their operations with very little changes and with more benefits.

In the Netherlands, UK companies can operate through permanent establishments, branch offices and subsidiaries.

Our Dutch company formation specialists can help representatives of UK companies set up any of the business forms mentioned above.

Large companies have already started moving outside the UK

Many international companies which have headquarters in the UK have started looking for alternatives for relocating their businesses. From this point of view, the Netherlands has what it takes to set up big operations with a great number of multinational businesses operating their regional headquarters here. With a workforce mostly made up of expats, the Netherlands can also fulfill the language requirements such companies need, therefore representing a good alternative for large and medium-sized companies seeking to move from the UK after Brexit.

Our company registration advisors in the Netherlands can offer detailed information on how an UK business can move its operations here.

Business forms to be employed by UK companies in the Netherlands

There are several business forms which can be used by UK companies if they decide to choose the Netherlands as their EU country of residence. The subsidiary is one of the preferred choices of foreign companies considering it can operate as a limited liability company which provides for many benefits, among which a reduced level of taxation and an easy registration procedure.

Then, there are the branch office and the permanent establishment which are suitable for UK companies based on the double taxation agreement between the Netherlands and the UK. The branch office allows full control of the UK companies over the activities in the Netherlands, thus ensuring a smooth operation of the business.

If you want to open a company in the Netherlands, do not hesitate to ask our local agents about your options.

Other benefits when choosing the Netherlands after Brexit

The single market is one of the EU’s most important benefits and when adding that advantage to the fact that the Netherlands has the largest port-cities in the entire Union, gaining direct access to these ports can represent the best solution for UK companies seeking to relocate after Brexit.

The Netherlands is one of the most important member states in the European Union and is also regarded as one of the best European economies, which is why it represents a good alternative for UK companies after Brexit. Moreover:

  • – the Netherlands is the 6th largest economy of the European Union and one of the most important transportation hubs;
  • – 2019 is expected to bring a 1.6% economic increase for the Netherlands, according to the European Commission;
  • – 2020 is further expected to deliver a 1.5% economic growth for the country;
  • – at a worldwide level, the Netherlands is the 2nd largest agricultural exporter.

For complete information on why you should choose to relocate your UK company to the Netherlands after Brexit, please contact us.