A lot of uncertainty exists regarding the UK’s exit from the European Union, particularly amongst those conducting business abroad. In fact, a considerable number of businesses have already begun the process of leaving the UK and moving their presence elsewhere within the EU. But what impact will Brexit actually have come end of March 2019, and how might one be prepared for it?
Potential consequences of Brexit:
One may have to consider that with the UK exiting the EU, the treatment of tax may change. This is largely dependent on whether the current tax rates in the UK will increase, or if new tax regulations will be implemented. Further, the issue of VAT is also under question, and whether Britain will disregard the current European recommendations, or if it will introduce a new standard entirely.
Although one cannot predict the impact on the Sterling post Brexit, we have already seen significant fluctuations in its value against certain currencies such as the US Dollar.
New rules and regulations for doing business
One of the implications could be the UK deciding to abstain from submitting to EU procedures, rules and regulations, and instead, adopt protocols that they consider to be of benefit to the country’s economy. Whilst many anticipate that this won’t happen and that the UK will want to maintain ease of doing international business, there is no certainty. And should new regulatory procedures be put in place, the risk of double taxation and having to deal with increased regulation rises.
No access to a single free trade market
Whilst this has not been ascertained yet, with no access to a single free trade market, UK companies stand the risk of being unable to benefit from the trade agreements currently in place between EU and non-EU countries. Should access be limited or restricted entirely, the implication could be an increase of various costs including tax and duties, among others, negatively impacting the UK economy.
So how does one mitigate the potential risks associated with Brexit?
Moving your business to Cyprus is definitely worth considering, particularly when one takes into account the advantages that make Cyprus a sought-after jurisdiction by global investors. The re-domiciliation process is not particularly complex. Rather, it is a matter of submitting a short list of documents to the Cyprus Registrar of Companies (RoC), together with the relevant application form. Dionysiou & Partners is able to assist you with the entire process, ensuring that all necessary documents are collated and submitted, and will monitor the application from submission to the RoC, until finalisation.
What are those advantages that make Cyprus a strategic jurisdiction to establish business presence?
- A reliable legislative and regulatory infrastructure, and a robust, expanding economy in close vicinity to overseas markets in Africa, Asia, the Middle East and the EU.
- A favourable, transparent tax regime with low tax rates, attracting international investment.
- Double taxation treaties with over 60 countries worldwide.
- Easy to do business, with strong support systems in place.
- Opportunities for investment across multiple sectors.
- A legal system that is almost identical to that of the UK, with many rules and laws adopted from English company law and English common law.
- Highly educated human talent experienced in the delivery of top quality service.
- One of the safest countries in the world, with a high quality of living, and desirable climate.
For further information, please contact us by telephone on +35722272360 or by email on firstname.lastname@example.org.