Germany is the most important economy in the European Union, yet the UK’s decision of exiting the EU affected it as the two countries had important trading ties. However, British companies
are more affected by this decision which has left them no choice but to consider other options, among which the relocation of their activities to other EU member states in order to maintain their clients and customers.
Relocating a UK company to Germany after Brexit is for sure one of the best options, as this EU country offers numerous opportunities alongside the growth of its portfolio and profits.
The impact of Brexit on British and German companies and nationals
Brexit has affected both the operations of companies but also that of the citizens of both countries who need to travel from one country to the other. First of all, German and British citizens who have residence permits in the other country will not be affected by the changes entered into effect at the beginning of 2021. For the others, specific visas will be required.
When it comes to the operations of British and German companies
, the following changes have appeared:
- import and export declarations will need to be filed when it comes to customs operations,
- special import and export licenses for dangerous goods, chemicals, alcohol and tobacco products will be required,
- security and safety information could be required (the GDPR regulations will remain in place for British companies),
- different VAT rules and procedures will need to be completed when completing transactions.
These are some of the reasons why many British business owners decide to relocate their companies to other EU countries, among which Germany is one of the most suitable when it comes to economic prospects.
Options for UK companies relocating to Germany after Brexit
British company owners have several options if they want to continue their operations in the European Union and decide for Germany:
they can register new companies in Germany while maintaining their original business in the UK,
they can set up branch offices
in order to expand their activities in Germany,
they can completely relocate the UK business to Germany.
Either option should be weighed in carefully before making a decision, and if you have any questions on company relocation, our advisors can guide you.
Why relocate a UK business to Germany after Brexit?
makes sense when a British company addressed the EU market, which is a known fact that is made of millions of customers. Moving the activities to Germany
is quite simple and it requires completing a single step in the UK, followed by the incorporation of a new company here.
The procedure of relocating a UK company to Germany after Brexit
In order to relocate a UK company to Germany after Brexit, the British entity must first be de-registered in its home country. This will lead to its deletion from the UK Companies Register. Once this procedure is completed, a new company can be created in Germany. This will imply:
- selecting a legal form (a similar structure as the British one can be used, as the company registration regulations are not too different in both states),
- the documents for registering a German business must be prepared and filed with the Trade Register,
- all the business licenses must be obtained with the German regulatory bodies in the field the company will operate.
The private limited liability company
can be used upon the relocation of a British company to Germany
, as this business form also exists in the UK and the transfer is easy.
You can rely entirely on our local officers for guidance in opening a company in Germany.
Trading relations between Germany and the UK
From an economic point of view, Germany
is one of UK’s most important trading partners, as the data collected by statista.com
- the UK imported from Germany cars and car spare parts worth 13,7 billion GBP in 2019,
- the same year, the UK exported to Germany crude oil worth a total of 3,831 million GBP,
- the UK also exported to Germany aircraft parts worth 3,628 million GBP in 2019.
For assistance in relocating a British company to Germany after Brexit, do not hesitate to contact
our specialists in company registration.