Exporting to the UK
Name:United Kingdom of Great Britain and Northern Ireland
Capital Cities:England – London, Scotland – Edinburgh, Wales – Cardiff, Northern Ireland – Belfast
Monetary Unit:1 Pound Sterling = 100 pence
Symbols:GBP or £
Population:60,587,300 (2006 estimate)
Area:244,820 km²/ 94,526 sq miles
Calling Code:+44
GDP Total:$2.772 trillion (2007 estimate)
GDP Per Capita:$45,845
Normal working hours:09.00 to 17.00
The UK is considered by many to be Europe’s leading business centre, while the City of London has long been the European Union’s financial centre.
Economic prosperity is greatly assisted by overseas businesses that make the UK their base in Europe (UK wins some 25 per cent of inward investment in Europe). There are good reasons for this. Within the EU, the UK has the least restricted business environment; the least regulated marketplace and workforce; the largest international transport system; best communications; most widely spoken language; lowest top rate of personal taxation; one of the lowest rates of corporation tax; and the most cosmopolitan and culturally diverse capital.
While the UK is an attractive, low-cost centre for European business it is also a knowledge centre offering world-class skills, research and development in cutting-edge technologies: telecoms, e-business, software and semiconductor development, biotechnology, industrial design, life and physical sciences. This is the place for international business/academic partnership, expertise and innovation.
- VAT (Value Added Tax)
Currently there are three rates of VAT
- Standard rate of 15 %
- Reduced rate of 5 % for a few products and services such as domestic fuel
- Zero rate on some products and services such as books, newspapers and children’s clothing
You must register your business for VAT if you supply taxable goods and services amounting to more than GBP67,000 in a 12-month period, or if you anticipate supplying taxable goods and services amounting to more pro-rata than GBP67,000 per year within any coming 30-day period alone. Exceptions can be made if the sale is within the EU.
- Distributor
A distributor buys products from you and sells them on in his own right. His profit comes from the difference between what he pays you for the products and the price for which he sells them.
- Agent
An agent sells your products on your behalf using your name and you pay him a commission on the sales made. It costs you more to maintain stock under an agency arrangement, but you have more control over an agent than a distributor.
Appointing a local agent or distributor is low cost but it can be very difficult to find the right agent or distributor. Having your own limited company and presence in the UK even though you are selling via an agent or distributor can give your company more control in the UK.
- Branch Office in the UK
A branch has to be registered with Companies House and is generally subject to fewer reporting requirements than a limited company but does not provide the limited legal liability status in the UK afforded by a limited company. If a branch office of an overseas company is set up in the UK, the authorities will normally see this as a permanent establishment in the UK, making the overseas company liable for UK corporation tax on the UK branch profits.
- Limited Company in the UK
Limited companies are formed by registration under The Companies Act 1985. For a limited company certain information has to be filed and be publicly available at Companies House.
The reasons for having a limited company vary; for example it could involve contractual relationships or taxation reasons. It might also be a security/comfort factor for UK companies to know that the foreign company is serious about the market.
The key point is that a limited company is a legal entity entirely separate from those who own or run it and has limited liability. This protects the owners of the company if it fails. If the company is put into liquidation, the people who own the company will only be required to pay what they have already paid or agreed to pay towards settling its debts.
All companies must have officers. This means at least one director for a private limited, and at least two directors and a company secretary for a public limited company. A company secretary cannot be the same person as a sole director. A limited company also needs a registered office. This is the valid address for serving notice of any kind or documents of a legal nature on the company. The registered office must be in England or Wales (or in Scotland if the company is registered in Scotland).
Legal Forms of doing Business in the UK
UK Public Holidays 2008 and 2009
| Public Holidays 2008 | Day Observed | Date |
|---|---|---|
| New Years Day (*) | Jan-01 | Tuesday, January 1, 2008 |
| 2nd January (S) | Jan-02 | Wednesday, January 2, 2008 |
| Saint Patrick's Day (I) | Mar-17 | Monday, March 17, 2008 |
| Good Friday (*) | March 21, 2008 | Friday, March 21, 2008 |
| Easter Monday (EIW) | March 24, 2008 | Monday, March 24, 2008 |
| May Day Holiday (*) | 1st Monday in May | Monday, May 5, 2008 |
| Spring Bank Holiday (*) | Last Monday in May | Monday, May 26, 2008 |
| Orangeman's Day (I) | Jul-14 | Monday, July 14, 2008 |
| Summer Bank Holiday (S) | 1st Monday in August | Monday, August 4, 2008 |
| Summer Bank Holiday (EIW) | Last Monday in August | Monday, August 25, 2008 |
| Saint Andrew's Day (S) | November 30 | Monday, December 1, 2008 |
| Christmas Day (*) | Dec-25 | Thursday, December 25, 2008 |
| Boxing Day (*) | Dec-26 | Friday, December 26, 2008 |
| Public Holidays 2009 | Day Observed | Date |
| New Years Day (*) | Jan-01 | Thursday, January 1, 2009 |
| 2nd January (S) | Jan-02 | Friday, January 2, 2009 |
| Saint Patrick's Day (I) | Mar-17 | Tuesday, March 17, 2009 |
| Good Friday (*) | April 10, 2009 | Friday, April 10, 2009 |
| Easter Monday (EIW) | April 13, 2009 | Monday, April 13, 2009 |
| May Day Holiday (*) | 1st Monday in May | Monday, May 4, 2009 |
| Spring Bank Holiday (*) | Last Monday in May | Monday, May 25, 2009 |
| Orangeman's Day (I) | Jul-12 | Monday, July 13, 2009 |
| Summer Bank Holiday (S) | 1st Monday in August | Monday, August 3, 2009 |
| Summer Bank Holiday (EIW) | Last Monday in August | Monday, August 31, 2009 |
| Saint Andrew's Day (S) | November 30 | Monday, November 30, 2009 |
| Christmas Day (*) | Dec-25 | Friday, December 25, 2009 |
| Boxing Day (*) | Dec-26 | Monday, December 28, 2009 |
