After Brexit happened on 31 December 2020 many British entrepreneurs are wondering if there will be any value to be had from running a UK company. The pacifying factor regarding forming a company in Britain is that your contracts square measure are still written below Britain law, which implies they’re going to stay nearly a similar when the united kingdom finally leave the EU.
Notwithstanding the Brexit vote, the United Kingdom has continuously been, and shall continuously stay, a powerful jurisdiction with terribly long-standing laws and regulative systems. Effort the EU won’t modification that within the slights, So if you trying to create your own company, or have plans to register a brand new company within the future, then you’ll feel rest-assured that nothing has or can modification with the corporate formations method. Our Great Britain laws and rules area unit still as relevant as they were before the Brexit vote, thus let’s take a glance at however forming your own company within Great Britain can have an effect on you:
Advantages and disadvantages of registering a company in the UK or EU after 1 Feb
Following are the advantages of Forming or registering your company in the UK after Brexit
After Brexit EU, we will no longer be part of the common VAT system, which is based on EU VAT law. Britain will, therefore, be free to introduce its own VAT rates and rules, which could be of great benefit to a number of UK businesses.
UK regains its trade freedom after Brexit
Disadvantages of registering a company in the UK after Brexit
EU imports and exports will be subject to customs controls as the UK loses its free trade agreement. And it will result in a cost increase for UK businesses and would likely require paying import VAT and customs duties if you presently have makers, suppliers, and customers within the EU
• Greater legal uncertainty
• Greater legal uncertainty
• Financial sector of Britain suffer from heavy blow after Brexit
• Advantage of Registering a company in the EU after Brexit
Access to the single EU market after the post-Brexit UK will have to secure a new trade deal with the EU. This will create a broad range of issues, including, trade and customs restrictions, passport control procedures, and product safety requirements. As the outcome of this is unclear EU market should consider setting up a company in the EU
Financial licensing: Duly-licensed EU financial companies have access to the financial markets of all EU member states. Taking into account Brexit effects Britain will withdraw from the EU, financial companies who may have British licenses would no longer be permitted to operate in the EU. Therefore, British entrepreneurs engaged in monetary activities and targeting European markets can have the benefit of fitting business entities within the EU
The possibility to choose a low tax jurisdiction corporate taxation is an essential point of interest to businesses. In the EU, a variety of nations provide low tax rates, enticing incentives for start-ups, free economic zones, and convenient strategic location
Harmonized corporate legislation: EU law provides for effective and transparent protection of shareholders, employees, and creditors as well as a reduced administrative burden on businesses. After Brexit, UK companies also find themselves in regulatory uncertainty.
• The disadvantage of registered a company in the EU after Brexit
• The higher tax rate in comparison with Britain
• Restrictive labor laws
• Insecurity in connection with a single currency
• Lack of transparency