What does the Brexit Transition Period mean for Irish Business?

The official day for the UK to leave the European Union was on 31^st January 2020. However, the UK has not fully exited the EU just yet. An 11-month Brexit transition period has commenced allowing the UK and the EU to negotiate a new relationship agreement.

The UK–EU Withdrawal Agreement has been put in place. This means that the UK is no longer a member of the EU, but It will continue to follow EU rules until the transition period ends on 31^st December 2020. This period has been welcomed by businesses in Ireland and the UK as it will provide time for businesses to adopt the new rules for when a deal is agreed.

During the Brexit transition period the following items will remain unchanged:

• UK residents can continue to be the sole director of an Irish company without securing a Revenue Bond. After the transition period, these Irish companies must appoint at least one EEA resident director to avoid the bond requirement. 

• The UK will continue to operate as a member of the single market and customs union. All EU states are to treat the UK as a member state until the end of the transition.

• Freedom of movement for citizen will remain unaffected until the end of the period.

• The UK must follow current EU law and future rulings made by the European Court of Justice. However, UK ministers will no longer attend or vote at European Council meetings.

• Security and co-operation will the EU are to continue; the UK will continue to have access to EU databases and Europol during the transition period.

Only time will tell what the UK and EU relationship agreement will entail but the UK and Ireland are expected to maintain special allowances because of the shared land border between Northern Ireland (United Kingdom) and the Republic of Ireland.  For more information about how to form a company in Ireland please contact the experts at Company Bureau.

Find out more about Company Bureau Formations LTD visiting their Profile on WhatsWhat.ie