A rising trend that has come to the notice of experts is that the British are opting for the Netherlands to register their businesses. A huge number of British companies have decided to expand business in the Netherlands. Many more companies in Britain are considering doing the same. Let’s explore what’s behind all these sudden moves.
Some British companies may have to start a business in the Netherlands due to legal obligations. Brexit certainly has a role to play in this regards. Take the case for financial institutions. Such institutions are under obligation from the European Union to have European subsidiaries in order to conduct business with the Europeans. So having a subsidiary in the Netherlands will reduce a lot of burden for British companies.
Some British companies might feel the need to go to the Netherlands for business purposes due to timeframe constraints. Companies must meet the requirements of their European clients in a short limited timeframe. The consequences of not meeting the client’s needs within the given timeframe can be detrimental to the British company. Some companies can even go bankrupt.
Subsidies by the European Union
EU provides support to innovations and new businesses in the form of subsidies. Brexit means that the British companies would no longer be able to enjoy these subsidies. This would greatly dampen the innovative ideas and growth of companies in Britain. Consequently, British companies go to the Netherlands to avoid this negative scenario.
The British have shown a clear-cut interest for business expansion in the Netherlands. It will be interesting to see the consequences of this development of British business setup in the Netherlands. Only time will tell whether this development will spread to other European countries or not.