Beating the Brexit Blues
Brexit uncertainty has reached fever pitch in the UK in the run up to Christmas with MPs voting almost daily on motions threatening to bring down the government.
UK citizens are speechless as each twist and turn takes us further and further into the unknown. Everything is up for grabs from hard Brexit, soft Brexit to no Brexit at all.
So, while businesses STILL don’t know what is going to happen there have none the less been some moves to prepare. After all businesses that sell and buy from the EU need to have contingency plans in place which are flexible enough to cope with a wide range of outcomes.
Areas which business have been looking at include; movement of goods, product compliance, contracts, people, and financial planning & cash flow.
In some circles there has been talk of actually spinning off the UK-based parts of some global enterprises - allowing them to keep operating alongside the rest of the company however on the other side of the coin we have European companies taking action here.
For example, the Financial Times in London reports that Scores of European businesses have been setting up UK companies to ensure they can continue trading in Britain after it leaves the EU.
The paper says;
“The German-British Chamber of Industry and Commerce estimates there are 1,600 German companies operating in the UK, in industries ranging from manufacturing to retail and financial services. But many more German groups sell to the UK without having branches or subsidiaries in the country.
Alexander Altmann partner in Blick Rothenberg, a London-based accountancy company, said that by setting up a local subsidiary companies could manage imports into the UK better and act as local employers when applying for work permits to bring staff in from Germany or Austria after the UK leaves the EU.”
“Markus Seifermann, the German co-founder of UberRaum Architects, whose clients include the German embassy in London, said access to labour and the potential increased cost of importing materials were the two issues that most concerned his European clients, and that setting up subsidiaries in the UK was one way to mitigate such risks. He said he had not heard of a single client that wanted to stop trading in the UK as a result of Brexit.”
Are Subsidaries the Answer?
So with this surprisingly positive outlook emerging from amongst the gloom, how hard is it to create a subsidiary?
From a technology point of view, we know that with the right business technology support you can run a subsidiary very easily using a cloud based system like Business By Design. The beauty of this solution is that each satellite is totally integrated with the rest of the company but is easily broken off should the occasion arise.
In a climate where agility is paramount, this kind of flexibility is a distinct advantage.
IT Partners with Expertise
Caroline Atkinson, Founder and Managing Partner of In Cloud Solutions (United VARs Member UK) says: “Despite the Brexit Blues casting such a shadow over the UK, it is actually a really good time to think about setting up subsidiaries here. SAP Business ByDesign is a great tool for linking your companies together across different currencies and tax regimes and as the UK member of United VARs we are on hand to help with consultation, expertise and implementation, whatever your project – so please feel free to get in touch.”
In Cloud Solutions is part of a network of SAP Business ByDesign experts called United VARS which can help carry out such projects across the entire European Union and beyond.
If you are looking for an IT partner based in Germany, contact B4B Solutions, which is also member company of the United VARs network.
Author: Lucy Thore, Marketing Manager InCloud Solutions (United VARs member UK)
If you would like help creating a subsidiary in the UK or Europe, and you need the right ERP system, then do please get in touch.
Contact InCloud Solutions UK
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