We Can Help You Set Up Your British Subsidiary
It's a great place to do business ...
POSTED BY JONATHAN VOWLES ON 09/05/2017 @ 8:00AM
That's right; we help overseas businesses to set up their subsidiaries in the United Kingdom, and British businesses to set up their subsidiaries overseas. Are you looking to expand your business into a foreign territory?
If you're thinking of setting up a British subsidiary then JVCA can help you!
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One of the ways of dealing with the complexity of regulation is to get some expert help. At JVCA, we are specialists in setting up businesses here in the UK. We also have links with accountants and lawyers in other countries who can help you set up a business there.
Just to be clear, the use of the names United Kingdom (UK) and Britain are interchangeable here, but remember that the UK is made up of England, Wales, Scotland and Northern Ireland, all with slightly different business regulations. I use 'Britain' as a shortened term to refer to the union of these four countries.
So, why should you be thinking of expanding your business here? There are many good reasons why you should expand by setting up in Britain and the first five that come to mind are:
It is a low-tax economy, by comparison with many other countries, which means it is a good place to set up a business.
We are a gateway to trade with all of Europe. Brexit naturally brings uncertainty into this particular advantage, but it is likely to still remain a gateway after Brexit. Also, don't forget that Brexit won't happen until the end of March 2019, which is plenty of time to take advantage if you need to.
We have a stable economy. Despite the worldwide recession back in 2008, the UK is doing well. GDP growth is 2.1%pa in the first quarter of 2017.
We have a well-trained, multi-skilled workforce, which lends itself to a variety of business needs and makes it easy to get the employees you need.
By comparison with most other developed nations, the UK is one of the easiest places to start a business.
If you are thinking of expanding your business by setting up a subsidiary here, what are the things that you need to be aware of? It is a truism that 'business is business' the world over, but don't forget that politicians love setting rules and regulations and those will change everywhere you go.
In Britain, there is a sales tax called Valued Added Tax (VAT). It works on an almost universal system across Europe, but not quite, as the politicians couldn't help themselves. At its very basic level, it is simple, but lots of bits of it are quite complex. Having a British subsidiary is one of the ways to ensure that you can simplify and then meet this set of regulations.
Labour laws are complex everywhere you go. Some European countries have quite stringent labour laws and Britain is generally regarded as having more favourable ones than others. But the rules are different - and the risks are different - to the ones that you are used to at home. Make sure that you take advice before hiring, and especially before firing, and ensure that your business stays on the right side of the law.
Fundamentally, the business culture changes as you go across national boundaries. For example, it is common in the UK to give 30 days credit to trade customers, and then they actually take 40 days to pay. In Spain, your customers may expect 180 days credit! But a more important point is, do you need to give credit at all?"
What about practical stuff like forming a limited company, business names or bank accounts? These are another three areas where you might want some assistance from a local expert.
"Would you like to know more?"
If you are thinking of expanding to do business into Britain and you want to concentrate on the business while someone else takes care of the paperwork, do get in touch with JVCA on 01234 752 566 or click here to send us an email enquiry.
Let us help you to expand successfully and cost effectively!
Until next time ...
If you're looking for a new accountant to help grow your business, do visit www.jvca.co.uk and discover how Jonathan Vowles Chartered Accountants can help you!
I've been an accountant in and for business since 1987 and have a wide experience of consultancy, audit, accounts, taxation and wealth planning work from individuals and small businesses to multinational corporations and charities.
My eclectic interests in growing and developing business span a number of areas … and can be summarised as strategic business advice and tax saving advice.
I have worked with the Chamber of Commerce to deliver courses for people about starting up in business and have lectured about tax for a major accountancy practice and for Milton Keynes College.
I relax by reading fiction and by getting away from the office in a campervan.