In less than a year, the UK will make its exit from the European Union bloc. The implications of this unprecedented move on commercial entities in the UK are still vague, even because the terms of the divorce are currently still under discussion and negotiation.
If the UK implements a hard Brexit, it is expected that it will lose access to the single market. The implications here are huge as this anticipates a reintroduction of tariffs and taxes on trading of goods and services with the EU. As part of the EU, Britain has enjoyed free movement of goods, services, capital and people across all member states. A shift in this regard will mean an increase in volatility in many UK markets, if not all. Moreover, the EU, through its regulations, has standardised areas of commercial activity in relation to packaging and safety. These further regulate standards of what can be traded in the European Union.
Industry and political analysts have long raised large red flags about the negative impact of Brexit on UK businesses. And while some business owners are still pondering whether the impact will be positive or negative for their operations, others have long been in proactive gear, planning for contingency, as the clock ticks.
Bloomberg, quoting the Chartered Institute of Procurement and Supply, reports that nearly one in seven EU companies with British suppliers has moved some of their operations out of the UK and almost a third of UK businesses with suppliers from the EU have put up their prices, in order to remain competitive.
More than 1 in 10 EU companies have moved some of their employees out of the UK since the referendum vote and 22 percent of British businesses are having problems securing contracts with EU suppliers beyond March 2019.
How to do business in the EU
For many UK businesses, continuity of their operations within the EU is critical. A solution to ensuring that a UK company will still be able to do business in the EU is to relocate or set up a subsidiary in an EU jurisdiction.
Malta is fast becoming a popular relocation destination among business owners from the UK, for the far-reaching advantages it offers, in terms of company relocation for doing business in the EU. With a robust economy, the fastest growing in the EU alongside Germany, a stable political milieu, a pro-business eco-system, a favourable tax regime and an English speaking skilled workforce, considering Malta as a means to remain in the EU single market is a strong strategy.
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