If you run a business and want to expand it in the UK or create a base of operations, one option you may consider is setting up a company branch in the UK.
What is the British branch?
A branch in the UK is legally considered an extension of a foreign company. It has the right to enter into transactions and conclude purchase and sale agreements using the name of this company. A permanent representative should be appointed to the British branch, who will have the right to sign documents on behalf of the foreign company, and this company will be responsible for any debts or other obligations assumed by the British branch.
Opening a branch in the UK provides a number of advantages. This can be a great launching pad for entering the UK market, attracting new customers and increasing brand awareness. This is a good way to get to know the local markets and find out if your company can find a profitable niche there, and it is a fully profitable organization with less tax liability than a regular company due to its lower turnover and reduced overhead costs.
How to register a branch in the UK?
To create a branch in the UK, you must first register it with the UK Registration Chamber, the registrar of companies. Any foreign company setting up a branch in the UK is obliged to give this branch a name. This may be the original name of the company under which it plans to do business in the UK.
The supporting documents required by the Registration Chamber usually include a certified copy of your company’s founding documents. The Registration Chamber may also request a copy of your latest invoices.
After registration is completed, your company will have ongoing obligations to submit and disclose certain information to the Registration Chamber. You will need to keep the registered office address for your UK branch for a year, and you will also need to maintain the relevant statutory registers during the financial year.
As for hiring employees, you most likely need to get a UK sponsorship license. After all, most likely, your branch will hire employees that are not citizens or residents of the United Kingdom.
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