What you need to do if you do business with the EU
If you do business across the borders of Europe, you need to consider how you structure your business from 1 January 2021.
Spending time now considering how your border business operations and European specific corporate entities will be affected from 1 January 2021, is important.
Incase you hadn’t noticed (!!) the UK has left the EU, and the transition period after Brexit comes to an end this year.
The changes will affect:
- UK citizens who currently own, manage or direct a company registered in the EU
- businesses who are legal entities operating across the UK-EU border
- businesses who have taken the form of a European specific entity.
Cross border business operations
UK citizens may face restrictions on their ability to own, manage or direct a company (such as needing to live in the country in which the business operates).
UK citizens that own or run business operations in an EU country may need to comply with different requirements (those which currently apply to non-EU countries) in the country they are operating in.
For example, there may be different real estate requirements or the need for additional approvals to operate.
Branches or representative offices may also need to comply with extra company law requirements.
These restrictions and changes will depend on the sector and country in which the business is operating.
For more information check the country guides.
UK companies with a European Economic Area (EEA) corporate appointment and EEA companies registered with Companies House will need to provide some additional information to Companies House by 31 March 2021.
UK registered companies which operate in the EU should check they meet relevant EU countries’ incorporation requirements.
They may need to make adjustments to their structure. Companies may wish to seek professional advice.
European Specific Entities: Societas Europaea and European Economic Interest Groupings
Societas Europaea and European Economic Interest Groupings who want to transfer out of the UK should make sure they’re able to complete the process before 1 January 2021.
If transfers are not completed by then, any entities still registered in the UK will automatically be converted to a new UK corporate entity.
Companies may wish to seek professional advice.
Societas Europaea registered in the EU with branches or establishments in the UK will have to register these with Companies House.
They will have until 31 March 2021 to provide the necessary documents.
If any part of your business works or trades across EU borders and you want advice understanding things further, please give us a call and we can help or signpost you.