International Expansion

Expanding from USA to the UK requires careful considerations as there is no free trade and free movement of people. Import taxes, import duties and regulations can add considerably to the cost of imports. If the products are not correctly classified, unnecessary duties may be paid, so taking advice at the planning stage is particularly important for companies expanding to the UK from the USA but since Brexit it is equally important for European companies to get advice before importing their products to the UK. Despite changes after Brexit importers from the EU to the United Kingdom continue to benefit from the Trade and Cooperation Agreement (TCA), which abolishes many tariffs and facilitates trade. This agreement ensures largely tariff-free access for most goods and helps to minimize trade barriers. Harmonized EU standards and regulations reduce regulatory barriers, as many regulations between the EU and the United Kingdom remain similar. Geographical proximity leads to shorter delivery times and lower transport costs compared to more distant trading partners. Additionally, there are longstanding trading relationships that promote trust and cooperation between companies on both sides. Economic integration built over decades facilitates adaptation to regulations and ensures a degree of continuity in trade. The language barrier is usually one of the biggest hurdles for investors looking to expand their business activities into the United Kingdom. Therefore, we facilitate the expansion process by speaking their own language. US companies often use the UK as a first stepping stone into Europe from which to springboard to other countries. This is because there is no language barrier to overcome and the UK has very favourable conditions for companies expanding internationally. At Axada we can also assist our clients with expanding into other European countries from the UK, using our EU local professional contacts. We can intermediate with our language skills, breaking down language barriers that normally exist between clients and local advisers in other EU countries.

Companies expanding from Germany, Austria, France may not have the same import factors to consider as companies expanding from further afield, but they still need to deal with cross border VAT considerations. These can be very complicated and usually require professional advice. Free movement of people within the EU which simplified the movement of EU employees to the UK before Brexit no longer applies but we can assist our clients in finding the right solutions. Language barriers are usually a big consideration for European investors who expand to the UK and our clients appreciate that we can speak to them in their own language making the expansion process much more straight forward.