Foreign Representative Office of a UK Ltd

Discussion in 'Accounts & Finance' started by Bart_LBS, Jan 6, 2021.

  1. Bart_LBS

    Bart_LBS UKBF Newcomer Free Member

    26 0
    I run a small marketing and PR agency (UK limited company). All of our clients are companies from Asia (China, Hong Kong). We used to travel to Asia a lot to meet with clients, attend exhibitions etc. but now due to Covid it's been very difficult so my partner decided to move to China full time. In order for him to stay there we're planning to register a representative office of our UK company in China and secure his work permit/visa so that he can legally stay there.

    Do you know of any additional formalities in the UK for running such a foreign rep office? Do we need to report it anywhere? Can the partner of the company residing in China take 2 salaries, one in China from the Rep office and another director salary in the UK?
    Posted: Jan 6, 2021 By: Bart_LBS Member since: Jul 25, 2018
  2. Oscar478

    Oscar478 UKBF Newcomer Free Member

    22 3
    I cant speak to the formalities of setting up a representative office on the UK side. I am fairly confident it will be easy from a UK perspective. It's China that will cause you a headache. Use an agency to do this for you, and be sure to also hire your own independent lawyer to oversee everything that is happening. Even reputable agencies in Asia can get the job done in an unsettlingly illegitimate way and that can come back to bite you.

    As an example, I used one of the largest and most reputable agencies in Jakarta for business visa services, and one of the requirements was a return plane ticket. I send a couple of emails clarifying when I should book the ticket for and various other enquiries, to which I got a reply of 'don't worry, we have a template we use, everything has been submitted'.

    Your partner can take a salary in both places. Getting money back from China may not be easy, and may be liable to tax anyway, unless they spend < 6 weeks a year in the UK. It may therefore be easier for them to go with an expenses model where they get an allowance for living in China paid by the company, and their main Salary is paid in the UK. I have been offered jobs abroad with British companies and that is normally how they work.
    Posted: Jan 11, 2021 By: Oscar478 Member since: Sep 6, 2017