With the UK leaving the EU, many European businesses are looking to establish a presence in the UK. This can be done by either establishing a branch in the UK or by incorporating a UK subsidiary.
Armstrong Watson act for many overseas businesses and believe it is important they have the right structure set up in the UK to meet their needs.
Separate legal identity therefore the parent is not liable for subsidiary liabilities
The subsidiary must file company financial statements with Companies House
Corporation tax due on worldwide activities
This depends on each individual situation. At Armstrong Watson, we have a team of specialist overseas tax advisors, led by Corporate Tax Director Becky Bowness, who can deliver the best advice to help you make the right decision.
It is worth noting, you can initially set up a branch and if successful this can then be incorporated into a subsidiary. This can have additional tax advantages to the overseas company when it is expected start-up losses will be made in the first year as these can potentially be passed up to the overseas company.
When setting up a branch or subsidiary in the UK you will need to operate a finance function to ensure you are compliant with the national tax system. Not only can we help set up a UK branch or subsidiary, but we are also here to provide a fully outsourced finance function. To help you understand the benefits of outsourcing your finance function check out our article 10 reasons to outsource your finance function.