International Business

Setting Up a UK Operation - Legal Matters

If you are looking to set up a UK operation there are one of two recommended ways of doing this.

You can form either:

• A Limited Company, or
• A Branch office

Forming a Limited Company

A UK limited (incorporated) company can be established in around 2 weeks without fuss or complication. We have a self-completing form to ease the process which you can email or fax to us. Your legal obligations and responsibilities are summarized below and we will be pleased to discuss your detailed needs at any time. We fix-fee the Company set up and annual reporting, which will seem surprisingly good value if you have a quote from our larger colleagues.

Forming a Branch

A branch may be useful if you wish to avoid some of the reporting requirements of a limited company or you wish to retain some privacy in what information becomes UK public record. Use the form link to provide the information we need. Branches have to be legally notified and accounts of at least the parent submitted annually to Company's House; there has to be a filing address for correspondence as per limited companies and tax-wise you have to follow the same limited company rules.

» Company SET-UP form

The Registered Office

This is the address to which all legal correspondence (but not trading items) to the Company will be sent. The registered office can be anywhere in England or Wales but to avoid delays it is important to make sure that all correspondence is dealt with promptly. If we are handling your accounts we strongly recommend you use our address as your registered office.

Company Officers

Every incorporated company must have formally appointed company officials at all times. These officers are a Company Director and the Company Secretary.

A private company must have at least one director and a company secretary (a company's sole director cannot be the company secretary).

Annual Accounts

Every limited company and branch must prepare and submit annual accounts to Company's House. Filing deadlines are strictly controlled and fines are levied on delayed or inaccurate accounts. Limited company accounts are structured along strictly defined lines and accounting treatment varies to US GAAP rules. We will ensure you meet UK statutory requirements at all levels.

The Audit

If your annual UK revenue (net of sales taxes) is greater than £6.5m or you have UK assets worth £3.26m or more (for accounting periods starting on or after 6th April 2008), then the UK company will require a statutory audit. You may also require one if you are part of a group of companies, and the group as a whole goes over certain thresholds. If you have any questions regarding the audit requirement in your specific situation please contact our audit team at audit@clarkhowes.com or via phone at 01869 322261.

We have built up a team that specialises in auditing UK subsidiaries of overseas parents. As a result, the majority of our clients have rigorous reporting deadlines which we are more than happy to comply with wherever possible. From your perspective, the service flows neatly from the production of management accounts throughout the year to your statutory accounts. In reality there are two teams at work, one looks after your management information needs during the year, the other is purely involved with the audit. We do this to ensure you receive a professional, independent service from us.