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  • Novara Capital Group

Risk Management for the Brexit

In recent days, the EU leaders approved the Brexit deal, now, the uncertainty about the future remains due to it represents risks for EU and British companies. It is important to work on an analysis and planning that will allow companies to manage and mitigate these risks involved.

In an open letter to businesses (BBC News, 2018), the Financial Reporting Consulting FRC said companies needed to identify threats to shareholders, for example:

● Changes to import and export taxes linked to quitting the EU

● Potential delays to supply chains

● Describing actions being "to manage the potential impact" of Brexit.

Giambrone Law (2018) identifies the following risk factor for companies according to their situation:

Airmic association suggests asking a set of questions, in order to detect and identify the risk management that needs to be assessed:

● How many EU individuals does our business employ?

● How much business do we conduct in Europe?

● How is our business model affected by Brexit?

● Do we need to consider converting our existing business into a "societas Europaea"?

● How dependent is our business on access to the EU market?

● How would a less favourable trade agreement impact our business?

● How does Brexit affect our suppliers and our supply chain? Where are the vulnerabilities?

● Which legislation changes will affect our business?

● How might changes to the status of UK financial institutions impact our business?

Brexit takes place next march. You want the best outcome, take the best decisions but, probably you are analyzing all the possible scenarios looking for the best options.

If you want to create a new company, relocate or set a new subsidiary within the EU framework, we suggest you to set your company up in the Canaries Island.

As you will incur in additional costs and expenses, and need to maximize your profits the Canaries Island offers a Tax Incentive that is not known and gives you opportunities that the rest of EU countries are not willing to offer:

-4% fixed Corporation tax rate if you register as ZEC company

-Reduction of up to 90% of non-distributed net profit from a taxable base (RIC)

-50% tax rebate for production of tangible assets

-Tax credits for investments in strategic sectors that are profitable compared to the rest of the Spanish territory

In Novara Capital Group we help you to obtain your ZEC registration, all work paper, and the best Consulting Service to achieve all these benefits. Our team of experts will be glad to help you and share their best advice.


Novara Capital Group is an international tax & capital investment consulting firm. We specialise in Corporate Structuring, European Union Tax Incentives, IP Positioning, and Transactions / M&A. We provide intelligent corporate structures, advice, and an integrated service which cross delivers in businesses. We advise companies globally to accelerate international growth, optimise net profits, and enhance equity value leveraging Intellectual Property and Licences. Our in-house experts specialise in International Tax Law, Company Law & Cross Border Jurisdiction, Investment & Asset Management, Mergers & Acquisitions, and Operational Management.

Get in touch today to arrange an introductory conversation for more information.


London Tel: +44 207 129 7086

Spain Tel: +34 910 085 807

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