Title: How do overseas companies set up operations in the UK?

Setting up a new UK company is very fast and inexpensive. There are businesses that offer the service for under £100, and many commercial solicitor firms offer the same, along with legal advice on particular issues foreign companies will be required to address upon incorporation. Under the Companies Act 2006 the UK registrar of companies is charged with maintaining records for all UK registered companies. However, if a company is part of a larger international company, specific rules could become relevant, and the overseas company may be required to file reports in the UK. A commercial solicitor can advise an overseas company on these additional rules.

Another thing which might increase the complexities is the payment of UK employees. An overseas company by its nature will have an accounts and HR department which is familiar with the taxation and employment laws where it is already based. However, in order to employ workers in the UK the company must comply with UK regulation as well. The main difference between the American system, for example, and that of the UK, is that employees in the UK are taxed at the source, using the Pay As You Earn method (PAYE). This requires a company which hires local UK employees to ensure that the correct sums are taken from employees and sent to HMRC.

Further matters which overseas companies would need to consider involve taxation. A company which is trading in the UK might also make profits in the UK. Even if the rest of the group of companies is making a loss, there still might be tax liabilities in the UK. It is therefore advisable to consult a commercial solicitor before taking any permanent steps towards setting up business in the UK, so as to ensure that the tax liability is reduced, and that the company complies with all the relevant regulations in the most efficient way.

Article Source: http://www.onlinearticlessite.com

If you would like to know more about company law lawyers, company lawyer please visit ContactLaw.co.uk solicitors and Lawyers.

Please Rate this Article

5 out of 54 out of 53 out of 52 out of 51 out of 5 

Not yet Rated