Brexit a year on: Where are we now and what lies ahead?

Brexit a year on: where are we now?

Following the Referendum that was held on Thursday 23 June 2016, the United Kingdom (UK) took the historic decision to exit from the European Union.

Following that, on 29 March 2017, the UK invoked Article 50 of the Lisbon Treaty. This means that the Brexit procedure has officially started.

But with the Brexit vote now over a year ago and Article 50 firmly invoked, where are we now with Brexit?

Impact of Brexit on Businesses in the UK

There are Brexit supporters who have optimistic predictions for Britain and its businesses. But there are also many sceptics who predict that this has been a big mistake for Britain, and that UK will be seriously impacted.

The European Free Trade Association was formed in 1960, where UK was a founding member. However, if the European Union decides to change policies after Brexit, it could mean that the UK will lose its access to the single market.

Indeed, the truth is that if you are planning to establish or already have a business within the EU, then Brexit may actually damage your opportunities to sell freely to over 500 million Europeans.

In addition to this, as we have already seen, Fintech (Financial Technology) companies have started leaving from UK.

Probably every company in the flourishing financial technology sector – involving e-lending, money transfers and the banking markets – is now actively looking at moving staff and investment out of the country because of the uncertainty caused by Brexit.

Deutsche Bank is the latest corporation to be hit by Brexit. It is thought the bank could move 4,000 jobs out of the UK over concerns it won’t be able to conduct business throughout Europe once the UK leaves the union.

How To Brexit-proof Your UK Business

Businesses must be prepared for the possibility of the UK leaving the EU in March 2019 without any trade deal at all. In fact, they must be prepared so to react quickly to emerging scenarios.

The best way to Brexit-proof your business is to establish a foreign legal entity in EU countries.

All businesses should review their entire supply chain to identify where additional costs might be incurred, post Brexit, and to see if this can be restructured. Especially importing and exporting companies may find it beneficial to have a distribution warehouse in another EU country post-Brexit, so that goods do not incur charges on import into the UK and then again on export out.

It is a fact that if you own an Import / Export Company, or maybe you are a location-independent business owner or simply someone who offers digital services to EU customers then Cyprus is the ideal location to establish your Company.

Click here to read why Cyprus is the Ideal Location to Establish your Company >>