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By laura
- In Uncategorized
How to do business with a company in the UK
In this article, we will explore the best ways of how to do business with a company in the UK. These include key aspects such as business culture, legal regulations, the steps to setting up a company, and how to manage cultural differences.
If you are considering doing business with a company in the UK, it is important to understand the local business rules, the cultural, legal and also the logistical characteristics.
Understanding the UK business context
The UK has a highly competitive and transparent business environment. The UK’s economy is based on free trade.
It is relevant to note that the UK, despite its exit as a member of the European Union (Brexit), is still member of the European Economic Area.
British business culture
UK business culture tends to be more formal and reserved compared to other nations. Therefore business relationships tend to start on a professional basis and can take a little longer to develop to a more personal level. However, punctuality, trust and competence are crucial factors in the UK. British business people value directness and clarity of communication.
It is important to bear in mind some cultural considerations:
– Punctuality: If you are late for a meeting, they might think that you are being disrespectful. Punctuality is essential in negotiations and business meetings.
– Formality: The first contact is usually formal, with a focus on courtesy and mutual respect.
– Negotiation: Negotiations tend to be rational and fact-focused. The British tend not to show their emotions during business negotiations. It is very important to maintain a professional attitude at all times.
– Value of time: Efficiency is crucial. Discussions around negotiations should avoid ambiguity.
Legal aspects of doing business in the UK
Before you start doing business with a company in the UK, it is essential to understand the laws and regulations that govern the business environment. This will not only allow you to operate legally and ethically, but also avoid any surprises or complications in the long run.
Company registration and legal structure
In the UK, businesses can operate as limited companies (Ltd), public limited companies (PLC), sole traders or limited liability partnerships (LLP), among others. The most common form for entrepreneurs and small businesses is the limited company (Ltd). This means that the liability of the shareholders is limited to the amount invested in the company.
The process of registering a company in the UK is relatively straightforward and can be done online through the Companies House website. It is necessary to choose a name for the company, register the address of the registered office, and declare who the directors and shareholders will be.
Taxation and tax regulations
The UK tax system is one of the most transparent and reliable in the world. Companies must pay tax on their profits, known as Corporation Tax, and the standard rate is 19% (although this can vary depending on the size and nature of the company).
It is essential to ensure that you comply with UK tax regulations, as HM Revenue and Customs (HMRC) has a very rigorous monitoring system.
Intellectual Property
The UK is a country that strongly protects intellectual property. It is important to register your trademarks, patents and copyrights to avoid disputes. The UK Property Office is responsible for handling patent, trademark and copyright applications.
Negotiations and formalising agreements
Once the business context has been established and the regulations understood, the next step is the negotiation and formulation of agreements. Here it is essential to consider the following recommendations:
– Prior research: Before a meeting, make sure you are well acquainted with the company you are going to negotiate with. This preparation shows seriousness and increases the chances of success in the negotiation.
– Clear and specific proposals: Be sure to detail all terms, from prices to delivery times, to avoid misunderstandings.
– Formal contract: It is very important to formalise any agreement with a legal contract. Contracts in the UK are usually comprehensive and should specify the responsibilities of both parties, the terms and conditions of payment.