Over the last few years we have been contacted by more and more companies interested in setting up a permanent presence in the EU. As companies have got used to the new post-Brexit order and, in some cases, rebuilt their international business post Covid, we are seeing a marked uptick in the companies who are interested in setting up here in Lille. That’s probably not surprising given its a veritable gateway to Europe that sits right on the UK’s doorstep.
So what are the reasons that continue to attract UK companies to the European mainland? Well here are just a few:
Market Access and Customer Reach: There’s no way around it – it’s just a great, big Single Market. With over 450 million consumers, the EU represents a vast and varied market. By establishing a registered company in the EU, UK businesses can operate more seamlessly across member states, reducing barriers and enhancing their ability to reach a wider customer base.
Regulatory Alignment: By registering in the EU, UK businesses can ensure closer alignment with EU regulations, simplifying operations and reducing the compliance burden. This alignment can be particularly crucial for industries like pharmaceuticals, chemicals, and food and beverage, where compliance with local regulations is paramount.
Supply Chain Efficiency: For UK companies reliant on intricate supply chains that span European countries, having a registered entity in the EU can significantly enhance operational efficiency. It can reduce customs delays, mitigate the risk of border disruptions, and enable smoother logistics and distribution processes. This is a real winner for just-in-time manufacturing processes and industries where timely delivery is critical.
Enhancing Brand Perception: Having a registered presence in the EU can also positively impact a UK company’s brand perception. It signals a commitment to the European market, can enhance trust among EU business buyers, partners and consumers. It reflects a global and inclusive business outlook.
Talent Acquisition and Mobility: Access to the EU’s diverse talent pool is another significant advantage. By establishing a presence in the EU, UK companies can more easily attract and retain talent from across the continent, benefiting from a wider range of skills, languages, and cultural insights. Additionally, intra-EU mobility can facilitate the transfer and deployment of staff within the company’s EU operations, enhancing flexibility and responsiveness. According to the Métropole européenne de Lille statistics, the city of Lille for example has over 125,000 students in further education. That’s one very big talent pool just one hour and twenty minutes on the train from London
Avoiding the “double bubble”: A lot of the product companies we deal with have the issue of importing product from the Far East to the UK and then from the UK back out to European distributors and customers. That’s just not efficient in terms of time, process or money. A European presence streamlines the process considerably.
Every business is different so ultimately it does come down to the industry you are in, the stage of development of your organisation and where you want to take your company. But for a number of dynamic UK businesses setting up a company within the EU presents a strategic opportunity to navigate post-Brexit challenges, leverage new advantages, and position themselves for sustained growth in the global marketplace. Obviously, the decision to expand into the EU should be made with careful consideration of your company’s specific needs, industry requirements, and long-term strategic goal.
But there are people who can help you look at all the angles.
