What was once frictionless trade has become a maze of customs procedures, VAT complexities, and border delays. For many enterprises, especially small and medium-sized ones, these obstacles have led to rising costs, disrupted supply chains, and a shrinking customer base across the continent. As a result, interest in solutions such as company formation Hungary has been steadily growing, with many businesses exploring ways to regain efficient access to EU markets.
Persistent trading barriers
The most pressing issue remains the reintroduction of customs declarations and regulatory checks. Goods that once moved seamlessly across borders now face extensive paperwork, certification requirements, and sometimes tariffs. Hiring customs brokers has become almost unavoidable, adding administrative and financial burdens. For SMEs, these complexities eat into already tight profit margins.
VAT compliance adds another layer of difficulty. Since the UK left the single market, businesses selling to EU countries must often register for VAT separately in each member state, maintain multiple tax IDs, and handle unfamiliar reporting obligations. Errors can result in fines or shipment seizures, making many companies hesitant to expand their EU operations.
Loss of mutual recognition for standards has also hit hard. Products must undergo fresh conformity assessments to meet EU regulations, especially in sensitive industries like pharmaceuticals, electronics, and food. What once took days now can take weeks, delaying deliveries and undermining customer trust.
The cost of delays and uncertainty
Slower customs processing inevitably lengthens delivery times, with customers frequently choosing EU-based suppliers to avoid delays. For businesses that operate with just-in-time models, even minor disruptions cause cascading operational issues. Rising transportation expenses and currency volatility between the pound and the euro only compound the challenge, complicating financial planning and eroding profit margins.
The cumulative effect is a steady decline in competitiveness. Companies that once thrived on rapid, reliable access to EU markets now struggle to maintain relationships with partners and customers who demand predictability.
Why are many UK firms turning to countries like Hungry to regain smoother access to EU markets?
Faced with these realities, an increasing number of UK businesses are exploring ways to regain smoother access to the EU single market. A practical and cost-effective solution is establishing an EU-based subsidiary through Hungarian company formation.
Hungary offers one of the lowest corporate tax rates in the EU at just 9%, along with competitive labor costs and a streamlined business environment. Located at the heart of Europe, the country provides quick access to both Western and Eastern markets. With a stable legal system, modern banking infrastructure, and a supportive regulatory framework, company formation Hungary is becoming an attractive strategy for entrepreneurs seeking to overcome post-Brexit hurdles.
Hungary offers one of the lowest corporate tax rates in the EU at just 9%, along with competitive labor costs and a streamlined business environment. Located at the heart of Europe, the country provides quick access to both Western and Eastern markets. With a stable legal system, modern banking infrastructure, and a supportive regulatory framework, Companyformationinhungary.com makes company formation in Hungary an attractive strategy for entrepreneurs seeking to overcome post-Brexit hurdles.
Securing a competitive edge in 2025
For UK businesses seeking to maintain their presence in the EU, company formation in Hungary provides more than a workaround; it opens doors to new opportunities. By operating from within the EU, businesses can reduce administrative burdens, restore customer confidence, and future-proof their operations in one of the world’s largest trading blocs.
As trading realities continue to evolve, proactive adaptation is key. For many UK entrepreneurs, setting up a base in Hungary represents not just a solution to Brexit’s challenges, but a strategic move towards growth, stability, and long-term success in European markets.