Brexit update from Goodwille – November 2019

Two major events have taken place in the past month; the decision to have a general election in the UK, and an agreement to another Brexit extension.

General election in the UK – 12th December 2019

Last week, it was decided that a general election will be taking place in the UK on 12th December. This is the third national referendum since 2015.

The current Prime Minister, Boris Johnson, called for the election with the hope of resolving the Brexit deadlock. More Conservative seats would make a Brexit deal easier to pass.

However, the results could be the most unpredictable in a generation. According to recent statistics from the BBC, the EU/Brexit question tops the list of issues that British people care most about. Three and a half years since the Brexit referendum, every option is still a possibility.

Brexit Extension – 31st January 2020

The UK was set to leave the EU on 31st October 2019 and although Boris Johnson achieved a revised Brexit deal with the EU, the vote on the deal in the British Parliament did not go through.

In addition, British Members of Parliament adopted an amendment, commonly known as the Benn Act, which aimed to make sure that the UK could not leave the EU on 31st October without legislation in place.

Therefore, on 19th October, Prime Minister Johnson sent a letter to the EU asking for a Brexit delay for a third time. The EU agreed to a further extension until 31st January 2020, with an option to leave sooner if the British Parliament approves a deal.

Brexit will, of course, largely depend on the outcome of the general election.

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This update is for general guidance only. Specific legal advice should be obtained in all cases. This material is the copyright of Goodwille Limited (unless otherwise stipulated) and is not to be reproduced in whole or in part without prior written consent.

Brexit Timeline of Events

23rd June 2016

The United Kingdom European Union membership referendum takes place, commonly known as the Brexit referendum. It results in 51.9 per cent of votes being in favour of leaving.

29th March 2017

The at-the-time Prime Minister Theresa May trigger Article 50 of the Treaty on the European Union, which begins the UK’s withdrawal.

29th March 2019

The initial Brexit day, when the UK was originally set to leave the EU. However, the process is delayed as the Withdrawal Agreement drafted and negotiated by the then Prime Minister Theresa May was not approved in the British Parliament.

7th June 2019

Theresa May announces she will resign as Prime Minister.

23rd July 2019

Boris Johnson is elected new leader of the Conservative party.

24th July 2019

Boris Johnson becomes the new Prime Minister of the UK.

31st October 2019

The UK is supposed to leave the EU, but the departure is yet again delayed.

12th December 2019

General election in the UK.

13th December 2019

The results of the General election are announced.

31st January 2020

Brexit day. The UK is set to leave the EU on this date.

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This update is for general guidance only. Specific legal advice should be obtained in all cases. This material is the copyright of Goodwille Limited (unless otherwise stipulated) and is not to be reproduced in whole or in part without prior written consent.

Go virtual – how a virtual office can support the success of your UK business

International expansion is the goal of many businesses and while launching your business in a new marketplace is very exciting, it’s critical that you spend your time doing the things that bring value to your business. For companies, and startups in particular, the most important resources you have to play with for the new market launch is time and money. A virtual office solution is one of the many ways in which you can reduce your costs, and save yourself time, so you can’t afford NOT to consider it when you are starting a UK business.

What is a virtual office?

A virtual office is a cost-effective solution for creating a UK presence without renting a physical office space and employing office staff. It provides all the benefits of your own office space, but for a fraction of the cost. You might disregard these tasks as trivial, but they really can eat your time and be a distraction from the activities you should be focusing on to grow your business.

Virtual office solutions can cover a range of different services. Some of the most common virtual office services include:

  • Telephone answering
  • Post handling
  • Customer support
  • Meeting room hire

How can a virtual office support the success of you UK business?

A virtual office brings several benefits and could increase the chances of your success in the UK market. Here are some of the main reasons our clients choose to use a virtual office solution to ensure their UK business thrives.

Focus on your core strength

A virtual office gives small businesses that are entering the UK market access to the support functions needed to run the business operations without having to employ someone to do it. When you establish in a new market and only have a few employees you need them to add direct value, at all times, and contribute to growing the business. A virtual office is a great solution to maximise your resources before the business warrants creating a permanent job for tasks like answering the phone and other administrative tasks.

Flexibility

Finding the perfect office takes time, especially in London where office rents are exceptionally high. Jump too soon and you might find yourself caught up with an expensive lease that is not fit for your longer-term growth plan. And even if the goal is of course a successful UK expansion, unforeseen situations can occur that might result in that you want to exit the market.

It’s just simply not worth risking the cost and investment for an office when you just start out in a market, as your key to a successful market launch is flexibility. A virtual office gives you just that – flexibility, while at the same time offering all the benefits and processes needed to give you a head start on the UK market.

A good impression

But a virtual office also offers another very important advantage for companies operating in UK– it gives the impression of an established and more serious presence in the UK. Business is all about relationships and a UK phone number and address gives you credibility as a business as it shows commitment to the market.

A UK presence sends an important message to potential clients and suppliers. Just think for yourself –would you rather do business with a company that is in the same country, or someone who is elsewhere in the world (and likely a different time zone).

So is a Virtual Office only for companies launching on the UK market?

Not necessarily! Businesses of any size and at any stage of growth can reap the benefits from using a virtual office solution. It all depends on your business’ needs and what services you require. Virtual office services provide the flexibility to grow with your business while always maintaining a high level of professionalism, so it’s an excellent solution also for scaling businesses. By outsourcing your non-core business activities, you give yourself more time to focus on growing your business, regardless if you are just starting out or if you are more established on the UK market.

So as you can see, a virtual office solution gives you both a better chance at impressing potential clients, as well as more time and money on your hands. If you are just starting up in the UK and want your UK business to get a head start without involving too much risk and capital, or if you are a more established business that want to streamline your operations and maximise resources, then a virtual office is definitely something you should consider.

Goodwille’s Virtual Office service, available in both London & Warwick, provides you with a selection of services to suit your needs at any stage of your business’ growth. Read more about our Virtual Office services here or contact our Front of House Manager Evy Rune to find out how we can help create a UK presence for your business.

Join our roundtable on launching a food and drinks brand on the UK market

Are you a food, drinks or nutrition business planning to launch on the UK market? Join our roundtable session during Food Matters Live for insights on how to successfully launch your brand in the UK!

Food Matters Live, the food community aiming to change the future of food and drink, comes to London 19th-20th November. The two-day exhibition attracts innovative food and drinks brands and visitors from around the globe to ExCeL London. Besides showcasing the latest innovation in food and drinks, it offers cross-sector meetings and educative seminars and roundtables with sector experts.

If you are a food & drinks brand thinking about entering the UK market – don’t miss our roundtable session, co-hosted by Goodwille and Ely Advisory. Themed ‘The Lean Startup – Market Entry Simplified’, the session will provide insights on how to enter and succeed on the UK market as a food & drinks brand.

About our roundtable sessions

When: Tuesday 19th November and Wednesday 20th November, 13:15 – 14:00
Where: Food Matters Live, ExCeL London

Theme: The Lean Startup – Market Entry Simplified

Launching a new product can be challenging in itself, let alone when you are launching into an entirely new market. Together, Goodwille & Ely Advisory have been helping foreign-owned food & drink brands enter the UK for decades. Join our roundtable session during Food Matters Live to understand the practical elements of establishing your food & drinks business in the UK, along with some essential tips & tricks that will help you when you are dealing with UK food & drink retailers.

Speakers

Alexander Goodwille, CEO of Goodwille

Goodwille have been helping brands from around the world to get their products into the UK market. Supporting restaurant chains, along with consumer food & drink brands, we understand what it takes to get your product into the marketplace, whilst ensuring you remain fully compliant when trading in the UK.

Goodwille provide a complete solution for businesses entering the UK market, covering Corporate Legal, Finance, Human Resources, Payroll & Virtual Offices.

We have experience working with both food & drink brands selling online into the UK, through independent stores & leadings retail chains, along with those operating their own physical restaurant chains.

Through our wider network we can support our clients with import/export, leases, storage facilities, distribution, marketing and more. By choosing to work with Goodwille, it gives you more free time, so you can focus on launching your brand in the UK market.

Andrew Ely, MD of Ely Advisory

Ely Advisory is a boutique consultancy specialising in working with food and drink companies on UK market entry. Founded by Andrew Ely in 2017 and utilising over 30 years of successful sales and marketing experience with UK based food and drink companies.

We can all think of inspirational food and drink brands but how do we create them? This is a question which has always fascinated me. My experience covers a wealth of categories: bread and cakes, Chinese and Italian products, gluten and lactose free, plant-based foods, crisps and snacks, wines and spirits. I am well versed in managing the opportunities and challenges around cross-cultural and cross-border working. I have also got to know and thrive working with the different ownership structures that support modern food businesses; from large publicly quoted companies to private equity backed investments and exits.

At channel level, I have strong experience evaluating and executing the different choices facing companies who want to come to market in the UK. Retail and online are perhaps the most visible of these options but increasingly Out-of-Home and Business-to-Business form an essential part of any well-planned market entry.

Who should join and why?

Our roundtable discussions give you the opportunity to hear us share our experiences and ask questions about launching a food & drinks business on the UK market. Our combined expertise in UK market entry, launching a food & drinks brand and dealing with food retailers in the UK will help you prepare your launch with the right resources and partnerships. If you are a foreign food & drinks brand with interest in the UK market, this 45min session will give you a head start on the UK market.

Goodwille are experts in helping foreign-owned businesses enter the UK market. We have supported several food and drinks brands and can assist you business with launching and expanding in the UK. Contact us today for more information on how we can help your brand succeed on the UK market. 

What Comes Next? The Business Analysis of ‘No-Deal’

The Confederation of British Industry (CBI) has examined the ‘no-deal’ preparations made by the UK government, the European Commission, Member States and companies in 27 areas of the UK-EU relationship that are most important to business.

They recently published a report on ‘no-deal’ readiness, including the table below (pages 9-10). Please click on the table to get to the original report for further reading.


This update is for general guidance only. Specific legal advice should be obtained in all cases. This material is the copyright of Goodwille Limited (unless otherwise stipulated) and is not to be reproduced in whole or in part without prior written consent.

Boris Johnson on Brexit – One Week In

Delivering Brexit is the number one priority for Boris Johnson. He has repeatedly pledged that a ‘no-deal’ exit would be preferable to another extension. During his first speech as Prime Minister, he stated: ‘We are going to fulfil the repeated promises of parliament to the people and come out of the EU on 31st October, no ifs or buts’.

When his predecessor Theresa May was in office, a Withdrawal Agreement (WA) between the UK and the EU that would settle how the British would leave the Union was drafted and negotiated. The WA is close to 600 pages long. Some key points include:

  • A transition period of 21 months – in which the UK must abide by all EU rules;
  • A financial settlement, the so called “divorce bill” – to be paid by the UK to the EU;
  • Citizens’ rights – UK citizens in the EU-, and EU citizens in the UK will retain their residency and social rights after Brexit;
  • Northern Ireland/the backstop – an insurance policy designed to avoid a hard border between the Republic of Ireland and Northern Ireland.

To date, the WA has been rejected three times by the British Parliament. The issue regarding the Irish backstop was one major reason why Theresa May could not get the agreement through Parliament. Although the EU consistently has said it is unwilling to renegotiate the Withdrawal Agreement, Boris Johnson is confident that a better deal, one that the British Parliament will adopt, can be negotiated. He has for example stated that he believes the issue of the Irish border will be better dealt with after the UK has left the EU.

However, even if the EU were willing to consider the changes requested by the new PM, there is little time left. With less than 100 days left until 31st October 2019, the prospect of a no-deal exit is rising.


This update is for general guidance only. Specific legal advice should be obtained in all cases. This material is the copyright of Goodwille Limited (unless otherwise stipulated) and is not to be reproduced in whole or in part without prior written consent.

How Could A ‘No-Deal Brexit’ Affect Goodwille’s Clients and Our Services?

It is impossible to go into every detail on how a ‘no-deal Brexit’ would affect Goodwille’s clients and our services, but one can start by categorising the possibilities in the sections below.

For clients based in one of the remaining Member States, the consequences of a ‘no-deal Brexit’ broadly fit into two categories. Firstly, the human aspect as there will be new rules to bring staff into the UK post Brexit. Secondly, the import/export side, affecting those with physical products or businesses operating in regulated markets. The latter will likely be hit the hardest with an increasing amount of paperwork and new systems related to importing goods from EU Member States to the UK (and, to a lesser extent, exporting from the UK to the remaining EU).

As we approach the 31st October deadline, companies that move goods into or out of the EU are once again facing the prospect of stockpiling. If not already done, it is important to check with delivery partners to ensure they are ready in the event of a ‘no-deal’. For goods trading companies, Goodwille has previously encouraged these clients to apply for a UK EORI number (please contact us if you require more details).

Companies in the service industry will likely only have to deal with changes to VAT reporting. This should be covered easily within the remit that Goodwille has with clients using Goodwille’s finance services.

Most impacted will be subsidiaries of EU companies in the UK. These are likely to face the biggest hurdle related to ‘no-deal’ planning. Nonetheless, companies from outside the EU may find the so-called “no-deal exit” less problematic, unless they use the UK to as a gateway to the EU market.

To ensure a continued presence within the EU after Brexit, Goodwille has been developing its network and we have secured partners in Ireland. We have established contacts with import specialists to make use of the TSP (Transitional Simplified Procedures). For clients wishing to bring staff into the UK, we have partnered with North Star Law to ensure expert immigration advisory services aiding with supported VISA applications to enter the UK. We have also partnered with relocation services businesses, which can be essential when it comes to moving a family to the UK smoothly.

Goodwille are currently supporting in the region of 400 subsidiary businesses in the UK, and the vast majority of these are headquartered in Northern & Central Europe.  Over the coming weeks (and months), as more information is released and it becomes clearer on the impact Brexit will have on foreign businesses ability to trade with the United Kingdom, then Goodwille will proactively keep our clients updated – you are in safe hands.


This update is for general guidance only. Specific legal advice should be obtained in all cases. This material is the copyright of Goodwille Limited (unless otherwise stipulated) and is not to be reproduced in whole or in part without prior written consent.

About Boris Johnson

On Tuesday 23rd July 2019, Boris Johnson was elected new leader of the Conservative party in the United Kingdom. The following day, he became the 14th person invited by Queen Elizabeth II to form a government. Johnson is thus the third British Prime Minister since the Brexit referendum that took place in June 2016.

Following the change of Tory PM, there has been a reshuffle of government. Johnson has described the new cabinet as a “cabinet for modern Britain”. It includes Dominic Raab, who is the new Foreign Secretary and First Secretary of State. Priti Patel has replaced Sajid Javid as Home Secretary, who in turn is the new Chancellor. Stephen Barclay remains Brexit Secretary.

Alexander Boris de Pfeffel Johnson was born to British parents in 1964 in New York. His father is a former British Conservative Member of the European Parliament. Johnson therefore spent a couple of years of his childhood in Belgium. He was educated at Eton College and at the University of Oxford.

Prior to the referendum, Boris Johnson was one of the front figures of the Leave campaign who is believed to have contributed to the UK’s decisions to leave.

After Theresa May became Prime Minister in July 2016, she appointed Johnson Foreign Secretary. He resigned two years later. Between 2008 and 2016, Boris Johnson was Mayor of London. Prior to becoming a Member of Parliament, he worked as a political journalist for newspapers such as The Times, The Daily Telegraph and The Spectator.


This update is for general guidance only. Specific legal advice should be obtained in all cases. This material is the copyright of Goodwille Limited (unless otherwise stipulated) and is not to be reproduced in whole or in part without prior written consent.

Three things to consider before joining the UK market

If your business has been successful in your home country and your services and products have also received some interest from UK consumers, congratulations! However, before setting up an office in a foreign country, ensure you consider all aspects. Here are three questions to ask yourself before entering the UK market.

What are your objectives and why the UK?

Goal setting and having clear objectives must be a priority for every business to be successful, but especially when entering a new market. You will need to know how your business is currently operating and ask yourself some key questions:

• What are my long-term and short-term goals?
• How does my business compare to others in the UK market?
• What are my business’ current profit margins?

Next, you need to ask yourself how the UK helps you achieve these. The final decision to open a UK office should hinge on how well it meets the key objectives of your overall business plan and not on specific factors in isolation such as tax, employment conditions and legal aspects.

Of course, while achieving business objectives is paramount, you also need to consider where in the UK would best meet your needs. While London may seem the obvious choice, other major cities such as Manchester, Aberdeen and Cambridge might pose specific benefits for your business’ skills niche or industry.

What type of entity do you need?

Deciding what business entity you will operate under is not to be taken lightly as it can have implications both in the short term and the long term, particularly with regards legal aspects such as paying tax, sharing out profits, making company decisions and liabilities.

The three most common ways foreign investors set up a UK company include:

I. Registering as a UK establishment – commonly referred to as a UK branch

II. Incorporating a UK subsidiary, where the most common is a private limited company

III. Incorporating a limited liability partnership

Finding the most suitable business entity may require expert help, and seeking advice from an expert can be very useful. An adviser with experience of helping companies setup in the UK can help you make the decision by asking all the relevant questions. Before you make the decision of the type of business entity, we recommend considering the below aspects with your adviser;

• The business’ nature and likelihood of prosperity in the UK
• The period you expect to be in the UK
• The challenges that you might face in establishing your business in the UK
• Administrative costs and disclosure requirements
• Tax implications

What legal implications will you face?

Next, you will have to deal with the legal side of things. The business entity you have chosen will determine your duties and responsibilities. In either case, you will have to register your business with Companies House and with HMRC, the UK tax Authority. In addition to this you will also have to factor in the necessary time for completing all the required registrations and paperwork before you can legally start trading in the UK.

Once you have considered the above and decided to enter the UK market, you will be in a position to enjoy the many benefits that the UK has to offer, including good infrastructure, specialist skills bases, a healthy business environment and a diverse yet skilled workforce. If you need advice on how to set up a UK company, you should speak to the experts at Goodwille. We can advice on the most suitable business entity to your business and your legal responsibilities in the UK. Read more about our Corporate Legal services or contact us today for more information.

How telephone answering services can improve client retention

When you open a new UK office, it’s clearly desirable to seek new prospects and clients, but it’s also extremely important to look after the customers you already have. But how can you guarantee a quick response to your clients’ calls throughout the working day when you are busy with meetings? And what about dealing with overseas customers or those in a totally different time zone? That’s where a good telephone answering service can help you.

Speaking with a real person

No matter how much information you provide for your clients on your website and regardless of how efficient you are at answering emails, people still prefer to speak directly to a human being when they have a query. A lack of response to their phone calls or merely getting through to a voicemail service or automatic message is a sure way of alienating, frustrating, and potentially losing those important existing customers.

A good live telephone answering service means that your existing customers can be confident of always getting through to a real person, 24/7. However, for a really good customer service experience to be provided, it’s important that your answering service staff have access to existing customer information and an understanding of likely queries relating to invoices etc. that may arise.

Why good customer service is so important for your existing clients

Obviously, customers who place regular orders for your goods or services are important when it comes to your monthly revenue. However, retaining them is also vital if your business is to thrive and grow.

Think about it; a poor customer service experience suffered by one client is likely to be passed on to their business contacts by way of a negative recommendation. Those people may then feed back this information to their own associates and suppliers, who in turn may do the same. Add to this the likes of Twitter, Facebook and the myriad other social media sites and forums used by businesses and you can see just how rapidly and extensively your business reputation could be damaged.

A well-informed, efficient live answering service could turn the above scenario completely on its head. Happy customers will tell their associates, and your business’ good reputation for looking after its clients will spread out like ripples across a pond. Because of this, you may find that new clients actually come to you, thus saving you the expense and hassle of extensive marketing campaigns, whilst your business continues to grow and thrive.

In conclusion

Employing a good live answering service is a sure way of keeping your existing clients happy and indirectly boosting your marketing activity and generating business for your new UK office. Can your business really afford not to have one? Goodwille offers telephone answering services as part of our Virtual Office service offering. Read more about how we can support your business in the UK and contact us today for more information.