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By juan
- In Uncategorized
DOING BUSINESS IN THE UK
In this article, we point out aspects that should be taken into account when doing business in the UK and offer suggestions that will be useful.
The United Kingdom is one of the world’s leading financial centres. This is possible because it guarantees political stability, the right to private property, and defends free enterprise.
These are the main reasons why this country is home to many of the world’s most highly valued companies. And the trend of setting up companies in the UK (link) continues to be bullish.
For companies wishing to expand into the UK, there are several establishment options such as setting up a new company or opening a branch office.
Contents
1 Aspects to be considered when doing business in the UK
2 Doing business in the UK by creating a company
3 Doing business in the UK by creating a branch office
4 Conclusion and recommendations
1 Aspects To Be Considered When Doing Business in the UK
The advantages of setting up a company in the UK outweigh the disadvantages. However, as it is a mature market, you should study of the viability of the Project.
Subsequently, if it is determined that the investment is feasible, you need to decide the most suitable legal form. Among the types of companies in the UK, you will have to choose the one that best suits your business.
Likewise, depending on the activity to be carried out, the requirements to be met vary. Especially with regard to obtaining the necessary licences and permits.
For example, if your company imports or exports products to the UK, you will need to obtain an EORI.
2 Doing Business in the UK by Creating a Company
Broadly speaking, the incorporation and registration of a company in the UK is simple and the costs of setting it up are not expensive.
In addition to these initial costs, you should consider others such as insurance. And it is necesary to study business-related costs, such as business premises rental, hiring employees, advertising, etc.
Another cost to consider is taxes. Although taxes in the UK are competitive compared to other European countries, you need to know about all of them.
You have to take into account some particularities in order to comply with tax and accounting obligations.
For example, the UK tax year for a Sole Traders covers the period from 6 April to 5 April of the following year. But that of legal entity is conditioned by the date of registration of the company.
3 Doing Business in the UK by Creating a Branch Office
If you already have a company, setting up a branch office is a great way to access British business life.
However, bear in mind that a branch office is not a legal entity independent of the parent company.
That means that the parent company is responsible for any debts that the branch office may accumulate.
Furthermore, the branch must keep separate accounts for its operations in the UK and pay Corporation Tax, and other taxes. Double taxation agreements must also be considered to avoid double taxation.
On the other hand, understanding consumer trends is essential to achieving your objectives.
Therefore, consider that the products or services you are currently marketing may need to be adapted to the UK market.
4 Recommendations and Conclutions
Establishing your company in the UK can be a fruitful strategy for expanding your business. But it requires extensive knowledge of the type of market and local regulations and obligations.
Therefore, even if your project is viable and promising, it is advisable to have expert advisors. Doing business in the UK will be easier with help.