If you have a successful company in the UK, you may consider expanding to other parts of Europe, where you can expect a significant consumer base. The expansion to other areas creates offices that are known as branches.
Branches are simply smaller divisions of parent companies in different locations. Of course, creating branches will require a lot of legal work to be able to set up a branch there and facilitate its operation. Thus, this article explains a few factors you must consider to have your branch offices in Europe operate well.
Details Regarding Opening and the Operation of Branch Offices in Europe for a UK-Based Company
Businesses often create branches to manage administrative operations in the locations that they serve. For example, if you have an online retail store that ships products to certain countries in Europe (outside of the UK), you can set up branch offices there to manage logistic operations and others. This can also be a good option for businesses that have relatively low risk.
Legal Concerns When Opening and Operating Branch Offices in Europe
Any branch in Europe will be an extension of your company in the UK—not a distinct entity. Thus, you must present legal evidence of the existence of your UK company to be able to open a branch in another country.
You will also need to register with the VAT authorities and present exactly what it is that your parent company does and what the branches will do. You cannot operate your branch in other parts of Europe without first performing these tasks. These are required both for UK authorities and the country’s authorities where you plan to set up the branches.
Hire International Law Solicitors for Legal Help
Operating branch offices is a complex matter. There are laws of the specific countries, their regional laws, and even certain laws and regulations of the EU. That’s why you should hire international lawyers based in the UK. They will be aware of all of the details about specific countries’ laws regarding this matter. As a result, they are much less likely to miss out on any details or make errors than any UK-based lawyer.
Your solicitors will offer the right legal guidance on all aspects of this matter, showing you what you must do to make sure that you don’t run into any legal troubles in the future. Some solicitors can also overview the entire process of opening branches, explaining whether it’s even worth the investment.
Final Words
The operation of branch offices in Europe for a UK-based company will require a lot of legal work. Thus, you should never entrust this process to solicitors who have no experience or limited knowledge of this specific legal area. You could end up losing a lot of money by overlooking even small details.
