Despite the Brexit extension, it now almost sure that it will come on 31 October 2019 and the chance of a hard Brexit is bigger than ever. Be prepared for the Brexit. Some countries already put “Brexit impact scan” applications online where the possible impact in respect of UK related import, export, services and transport can be checked. Also do not forget to assess a possible impact on less obvious issues as privacy regulations and intellectual property.
Unfortunately, there is a lot of uncertainty. It is wise to monitor the progress of the Brexit negotiations. For businesses involved in UK import and export it is already wise to have additional stock in warehouses close to your customer. Also make sure you will have the capacity and knowledge to prepare export documents. In case you use a British import number to import into the EU, have it replaced by a number from another EU country. It is also very important to check your commercial terms, like Incoterms, that you use for your trade. Which party will be responsible for the import?
Also the applicable law will in absence of Rome I and Rome II (directives which regulate the applicable law for both contractual and non-contractual obligations) become uncertain in case the UK will no longer be a member state of the European Union. There will be no free movement of judgments anymore between the UK and the member states of the EU by means of rulings from the ECJ. Arbitration makes things easier, but there might need to be specified mandatory laws envisaged in choice of law regulations, or the equivalent British legal rules will apply.
For British businesses with EU related licenses or funding, like REACH for chemical products or EU passporting for financial, banking and insurance business, it is now time to act by setting up a company within the EU. The Netherlands can be good alternative to locate your business. In the Netherlands it is easy to set up a BV, the VAT regime for import is excellent, it is close to the UK and everyone speaks proper English.
Contact us for information on Dutch business set up. We can not only assist with incorporation of a company in the Netherlands. We also can assist with accounting, tax, work and residence permits and labour issues.