As the United Kingdom is negotiating its break from the European Union, everyone is wondering what lies ahead, especially for those who were planning to form offshore businesses. While there are many unknowns regarding the split, if the decision to leave the EU is finalised, UK businesses will find going offshore more difficult to do. The changes may not affect companies that are already set up offshore but start-ups and other companies wanting to make the move will not be able to do so as easily as it’s done now.
Potential Offshore Changes
For UK businesses looking to move offshore, going to tax havens in the Caribbean will not be affected by leaving the EU because they are not members. This means companies could still move to places such as the British Virgin Islands, the Cayman Islands, Nevis, Panama, the Bahamas, and Anguilla.
However, many of the more convenient tax havens in the EU may no longer be an option without doing much more work if the UK is no longer a member nation. This means that if you wanted to reside where your business is, then you would need to apply for a visa and go through the regular process for the country to which you want to move your company.
Making the Move
If you’ve been considering moving your business offshore to Switzerland, Gibraltar, Malta, or another of the other EU tax havens, you should start setting up a move now before the UK is no longer an EU member. Your company’s solicitor and financial advisor could help you decide which country is your best option and contact a formation company to help your business make the move. For instance, if your company or start-up is in the tech industry, then moving to Switzerland could be a great option and a business specialising in Swiss company formation could help expedite the process.
Along with discussing the options with you, the formation company can prepare all the legal and fiduciary documents needed to form your corporation and register it. They can also get your capital bank accounts opened and make sure the Foundation documents are prepared, which includes getting the Memorandum and Articles of Association written and filed, which must be done in German. Formation companies can also help set up your company’s operational policies and processes so you can start doing business as soon as possible.
Seek Offshoring Advice
If you haven’t decided whether to offshore your business or start-up, you need to seek advice about whether offshoring is right for your company. If your lawyer or financial advisor doesn’t have experience with offshore businesses, you need to seek advice from experts who do.
They can help you determine if the tax and other benefits would be worth going through the offshoring process, especially since no one knows exactly what to expect when the UK separates from the EU. Some experts don’t expect too many changes for businesses but no one knows for sure. The separation from the EU will complicate matters but the right advice can help your business move forward.