Expanding Into the UK: What European Companies Need to Know in 2021
Making the decision to expand your business is exciting, no matter the sector or industry that you are primarily in.
We feel we would be right in saying that larger corporations possess more experience in expanding their business than others. The to-do list often appears endless, with tasks being added left, right, and centre.
A variety of factors need to be considered when going forth with an expansion, both of which could impact the on-the-ground aspect of development and the more comprehensive company practices. No matter how much experience or expertise you have within a specific sector, there could come a time where you forget a detail relevant to your expansion, both smaller or more significant.
With this in mind, and to minimise the chances of this happening to you, we have compiled a guide below, detailing some of the things that companies need to know when expanding into the UK business sector in 2021.
Specifically, we will be considering the factors that European companies need to know when expanding to the UK, something that has been a hot topic for some time.
Get yourself comfortable, and get ready to take notes, driven entrepreneur! Read on for more.
Legal Factors to Consider
Much like other areas of running a large business or corporation, there are legal parameters that you must always consider, for they can drastically impact your ability to trade in a new location. First things first, a word we feel confident many reading this and beyond are familiar with. Yes, we are talking about Brexit.
While we recognise that many people have heard the word too many times, and with the UK out of the European Union as of December 2020, it is still affecting businesses across the continent. It is also something that needs to be considered by European companies who are intending to expand to the UK.
Companies intending to expand into the UK markets will need to ensure they are registered with the appropriate governing bodies and be in possession of any relevant permits or licences that might be required.
With a variety of resources available for interested businesses, you can rest assured you will be following the relevant and appropriate protocols to enable you to trade within the UK freely.
Financial Considerations
It goes without saying, but when deciding to expand a business, both internally and externally, there is a wide range of financial details that need taking into consideration. Growing any business is naturally going to lead to an increase in running costs, and you must have an understanding of how you would afford these costs and whether you will need to make any sacrifices to do so.
When expanding your business into the UK, it is paramount you understand what costs will be associated with this process. Furthermore, like most, if not all, countries worldwide, it is crucial you know what taxes you will be obliged to pay as a trading business within the UK.
If you’re considering expanding your business in the UK, it is recommended to use the services of a company like Goodman Jones. Advising large corporations like your own on what is needed to launch into a market like that of the UK, you can go forth knowing your efforts will soon come to fruition and that your company is in safe hands.
Once you know the costs associated with the expansion of business, nothing is stopping you from going forth with the rest of your business plans. This leads us to the next point.
Deciding On a Location
For some entrepreneurs, this is the easiest part of the expansion process. Many business people spend their careers working towards living and working in one of the vast metropolises dotted across the globe. Considering the available options in the UK, and most people’s minds would automatically turn to that of London, and all that it has to offer continental and international businesses alike.
However, while London is undoubtedly still a top choice location for many entrepreneurs, other cultural cities in the UK are beginning to attract the attention of businesses like your own. With a vast number of companies and organisations moving their companies out of the capital and venturing further north, this is undoubtedly also an option for those looking to expand.
Deciding on a suitable location for your company can be based on several factors; the demand for products and services should be on your list of factors to consider. Mainly, if you provide a service or product directly to consumers, the last thing you want is to expand your business, only to find that the demand is low in the location you have decided upon.
While this is not something of worry to those providing a third-party service, it is still undoubtedly worth considering by those European companies interested in expanding to the UK in 2021.
