What You Need to Know About Expanding Your Business in Europe

It’s important to realize that a European expansion is not only about how you operate over the next weeks and months, but how it sets your business up for future years of trading. Here we take a look at what you need to know about expanding your business into Europe.

It is still possible - even with Brexit

There can be no doubt that Brexit has created difficulties for companies that would like to expand into Europe. Chiefly, those difficulties revolve around the uncertainties that will be a factor not only as Brexit takes shape, but for years to come as the EU adjusts to life without the UK as a member.

However, expansion into Europe through Brexit is still possible and can be very effective. You just need to have the right expertise.

Proceed with caution

The most important thing to remember about expanding a business from the UK into Europe in the current climate is the need to proceed with caution. There are many aspects of the fallout of Brexit that are not currently clear, and much could change with regard to how UK and EU businesses operate with each other.

Expand slowly and methodically and make decisions after considering all of the relevant issues.

Ensure you comply with EU law

Until Brexit, the UK was officially a part of the EU and this made it relatively simple to operate a company anywhere across the continent. However, this is now not the case and that means there can be different specific laws governing not only how businesses must operate but over your specific industry.

It is absolutely essential that you understand the nuances of EU law so that you can do everything you need to in order to comply with it. Being in full compliance, such as GDPR compliance, can minimize the risk of fines.

Choose a strong base of operations

It can be a great idea to actually create a new partner business that is physically headquartered in Europe. This can make things much simpler and easier for you to operate. And, even better, it can provide substantial tax incentives. The key thing is to do your research into where could be the perfect base for your business.

One option that has grown in popularity in recent years is Gibraltar. It can be very attractive as the Gibraltar corporate tax rate is a flat 10%, meaning you could potentially pay less than if you were based in the UK.

Plan for challenging conditions

The old saying ‘expect the best, but prepare for the worst’ is certainly relevant here. Now can be a very valuable time to be expanding your operation into Europe, but it can also be a challenging one. Beyond the challenges facing companies due to Brexit and the COVID-19 pandemic, there are many unusual market conditions that can make things difficult.

Now can still be the perfect time to expand, but you must do so with long-term goals in mind rather than looking for easy wins. If your business is prepared to ride through challenging times and establish yourself as a legitimate company in Europe, the benefits can be felt later on.

Final thoughts

If your business is in a position where expansion into other markets is going to be a good move, there’s no reason to delay entry into Europe. Of course, it can be argued that these are challenging financial and social times, but it is also true that expansion at any time comes with its unknown elements and variables.

Delaying your move could leave you with other businesses challenges that may be even more difficult to overcome. It’s just important to make sure you’ve done your research properly and taken every precaution.