Navigating GDPR Compliance for International Companies Without Legal Entities in the EU or UK

Introduction

Global companies without a physical presence in the EU or UK but offering goods or services to citizens and process personal data or monito the activities of citizens in these regions must carefully adhere to GDPR requirements. A critical obligation is appointing GDPR representatives in the respective jurisdictions. This article explores why this is necessary, the implications of Brexit, and the potential risks of non-compliance, including fines and penalties.

Why Appoint a GDPR Representative?

The General Data Protection Regulation (GDPR) mandates that companies outside the EU or UK that process the personal data or monitor the activities of citizens in these regions must designate a local representative. These representatives act as the point of contact for both individuals (data subjects) and regulatory authorities.

EU GDPR Representative

For companies targeting EU citizens, an EU GDPR Representative must be appointed in an EU Member State. They handle:

• Maintenance Of The Registry of Processing Activities ( ROPA)
• Direct Communications with all 26 EU State Data Protection Authorities
• Direct Communications With Your Organisations European Data Subjects
• Be Your Data Privacy Advisory on All Data Processing Activitie
• Unlimited Support by Email and Online Video no extra charges or limitations

UK GDPR Representative

Post-Brexit, the UK enforces its own version of GDPR. If your company targets UK citizens but lacks a legal presence in the UK, a UK GDPR Representative is required to:

• Keeping the Record of Processing Activities (ROPA) up to date.
• Direct engagement with The Information Commissioner Office ICO
• Direct interaction with UK data subjects of your organization.
• Providing expert data privacy advice on all things UK GDPR
• Offering unlimited support through email and online video consultations without limitations

Dual Representation

If your company serves both EU and UK citizens, you may need to appoint both an EU GDPR Representative and a UK GDPR Representative. This ensures compliance with the separate but aligned GDPR frameworks in both regions.

Impact of Brexit on GDPR Representation

The UK's departure from the EU (Brexit) introduced distinct regulatory regimes for GDPR. Here’s how this affects representation:

1. Separate Representatives for EU and UK:
2. Data Transfer Challenges:
3. Regulatory Divergence:

Fines and Penalties for Non-Compliance

Non-compliance with GDPR, including failing to appoint representatives, can result in severe penalties:

EU GDPR Fines

Under the EU GDPR, fines can reach:

• Up to €20 million or 4% of the company’s annual global turnover—whichever is higher.

UK GDPR Fines

In the UK, similar fines apply:

• Up to ￡17.5 million or 4% of the company’s annual global turnover.

Additional Risks

• Regulatory Scrutiny: Non-compliance can attract investigations by DPAs or the ICO.
• Operational Delays: Lack of a local representative may impede your ability to address complaints or requests effectively.
• Reputational Damage: Publicized non-compliance undermines trust with customers.

Key Steps for Compliance

To comply with GDPR as an international company, follow these actionable steps:

1. Determine Your Need for Representation:Assess whether your business targets EU or UK citizens and processes their personal data.
2. Appoint Qualified Representatives:Choose representatives who are well-versed in GDPR and maintain physical offices in the required regions.
3. Review Data Processing Practices:Conduct regular audits to ensure compliance with GDPR principles like data minimization and purpose limitation.
4. Stay Updated on Legal Changes:Monitor developments in EU and UK data protection laws to ensure continued compliance.
5. Prepare for Data Subject Requests (DSRs):Establish systems to handle access, deletion, and rectification requests from data subjects.

Conclusion

International companies serving EU and UK citizens must prioritize GDPR compliance to mitigate legal and financial risks. Appointing the appropriate GDPR representatives ensures a robust framework for managing regulatory obligations and fostering trust with customers. As post-Brexit regulatory environments evolve, staying vigilant is essential to navigate these changes seamlessly.

For businesses seeking expert assistance, Formiti EU GDPR Representative Service and UK GDPR Representative Service provide professional representation in both the EU and UK. With their deep understanding of GDPR requirements, Formiti ensures your company remains compliant, manages data protection obligations effectively, and minimizes the risk of costly fines or reputational damage. Whether you need an EU GDPR Representative, a UK GDPR Representative, or both, Formiti offers tailored solutions to meet your needs.

If you require both EU and UK representative appointments Formiti offer a generous 50% discount on the 2nd Service.