International Businesses: Mitigate Local Employment & Tax Risk with a UK Subsidiary
Whether you’re looking to enter the UK market for the first time, grow your business or scale your operation in the UK, the following activities may trigger local employment and tax implications:
Establishing a physical presence in the UK
Hiring UK based employees
Engaging UK based contractors
Developing business with UK based clients
Raising investment from the UK investors
It may be far more efficient for you to incorporate a UK subsidiary of your overseas parent company, in which case you will be subject to certain obligations with Company’s House and HMRC and you will need local advice.
Dragon Argent have a full turnkey solution for international business looking to establish operations in the UK.
Alternatively call us on 02076860000 or send your enquiry to ask@dragonargent.com
TRUSTED BY FOUNDERS, STARTUPS & SMEs
We can offer a range of support including:
Start-up assistance, including incorporating and registering your UK subsidiary.
Corporate Services
Investment Related Services
Accountancy Services
Tax Services
Employment Services
Open UK Business Bank Account with Airwallex
UK subsidiaries of overseas companies are usually unfamiliar with the UK accounting, tax and legal regulations and require professional knowledge and support with these elements. Get in touch and speak to one of our specialist advisors today.
Hear what our clients think:
“Dragon Argent have supported us since inception and been fundamental to establishing firm foundations for our business. They’re experienced, straightforward, founder-friendly, and deliver a breadth of services in a joined-up way that inspires confidence.”
Griffin Parry | Founder & CEO, m3ter
OUR KEY UK SUBSIDIARY SERVICES
Dragon Argent offers a full turnkey solution for overseas businesses looking to establish a UK presence through the incorporation of a UK subsidiary, which includes:
UK Corporate Services
Incorporation of UK Subsidiary at Company's House
Provision of a Registered Address
Company Secretarial Support
Investment Related Services
(S)EIS Advanced Assurance Application
(S)EIS Advanced Subscription Agreement
Outsourced UK Accountancy Services
Bookkeeping
Management Accounts
Statutory Accounts
UK Employment Services
Immigration
Employment Contract Template
Directors Service Agreement
Staff Handbook
EMI Option Scheme
UK Tax Advice & Services
Corporation Tax Calculation
Quarterly VAT Submission
PAYE
Open a Business Bank Account with Airwallex
Open Local & Global Business Accounts
Bank-Beating FX Rates, Transfers and Multi-Currency Account
Expense Management
FCA Regulated
We also offer other ad hoc accountancy, tax and legal support. For pricing information and further, please schedule a discovery call
MEET THE TEAM
Advisory | Accountancy | Tax | Legal
Our team of accountants, tax and legal advisors deliver technically robust advice across a range of subject areas, never losing sight of our clients objectives when you setup your business in the UK.
Founder, Chairman & Head of Advisory
Senior Corporate & Commercial Solicitor
Head of Litigation, IP & Art Law
Data & Privacy Consultant
Head of Employment & Immigration
Corporate & Commercial Solicitor
Tax Advisor
Corporate Finance Advisor & Non-Executive Director
Trainee Solicitor
HAVE MORE QUESTIONS?
If you are either seeking to operate a separate business and already have a company or a foreign company and are looking to enter into the UK market, you could set up a subsidiary company.
Alternatively call us on 02076860000 or send your enquiry to ask@dragonargent.com
FREQUENTLY ASKED QUESTIONS
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A subsidiary company is only necessary in a few scenarios. You need to think about setting up a subsidiary company if:
You are Operating Overseas – Foreign companies will always opt to setup a subsidiary company in the UK if their main company is based overseas. There are many tax and administrative advantages to doing this.
Two Different Businesses – Sometimes you may have different arms of your business that are so radically different that they need to be formally separated.
Team Differences – Some companies create a subsidiary if they have a team working on a different project at another office. The project is likely not relevant to the business’s primary purpose, so a subsidiary can allow them to make a formal separation.
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Broadly, there are two main options available when doing business in the UK either a form of limited company (subsidiary) or a branch.
A subsidiary is an incorporated body (i.e. a company) and has a separate legal entity from the overseas parent.
A branch, which is an extension of the parent company, requires you to register the overseas entity as having a UK establishment with Companies House.
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The most significant benefit of setting up a UK subsidiary is that you can grow your company beyond your home base. It also helps you avoid liability.
In any subsidiary situation, the parent company typically has control over an entity location’s behavior — which means any compensation issues or litigation will go to the parent company and not to the subsidiary. Although it diminishes your liability, setting up a UK subsidiary gives you a greater degree of independence.
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As is the case with any private limited company, you can make changes to your subsidiary after its incorporation. This means part of the company can be sold to another company – meaning that it would have multiple owners, or you can remove the parent company and transform the subsidiary into a company that stands alone with no parent or holding company.
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When setting up in the UK, there are several legal structures to choose from. The company structure most suitable to you will depend on your type of business, where you are based and whether you have employees on board or not. Below are some of the most common legal structures in the UK;
Limited company
Branch office
Limited liability partnership (LLP)
Sole trader
Partnership
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A company can typically be registered with Companies House in 48 hours once all documents are completed. A UK company must register for corporation tax with HMRC, within three months of starting to trade. The paperwork for registration is not too extensive, however, certain statutory documents will be required.
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Opening a bank account is a time-consuming process as you will need to go through a money laundering process to ensure your company is credible for a corporate bank account. Therefore, prepare to have time and patience for this stage, it can easily take up to six months or more to complete.
Check if your bank in the company’s home country has any operations in the UK. In some cases, this might speed up the process, as it may prove some creditworthiness for the business.