How to form a UK company as a subsidiary of a HK based business

Discussion in 'International Business' started by Harrison Dancaster, Jul 8, 2019.

  1. Harrison Dancaster

    Harrison Dancaster UKBF Newcomer Free Member

    3 0
    Hi all,

    Would love to hear your thoughts on the following....

    I have been asked to do some research in regards to setting up a UK company as a subsidiary of business based in HK.

    I need to figure out the following:

    - What's exactly required to set up the subsidiary?
    - Is there different forms of companies, and what are the +/- of each if so?
    - In terms of the overall cost, what are we talking?
    - How long would the process take?
    - What information needs to be provided for this to go ahead?

    It would be greatly appreciated to hear some feedback on this topic.

    Thanks.
     
    Posted: Jul 8, 2019 By: Harrison Dancaster Member since: Jul 8, 2019
    #1
  2. Scalloway

    Scalloway UKBF Legend Free Member

    15,202 3,219
    The process can be done online on the Companies House website. The standard registration fee to set up a company is just £12 for the 'standard' Companies House web incorporation service, which takes up to 24 hours to turnaround. You can pay via credit card, debit card or PayPal.

    The HK company only needs to invest £1 as share capital to be the owner.

    I would suggest creating a private limited company. As above you only need to invest £1.

    Other types are company limited by guarantee, which does not have shareholders so could not be a subsidiary, and PLC which needs an initial investment of £50,000.

    More information here.

    https://www.gov.uk/limited-company-formation
     
    Posted: Jul 8, 2019 By: Scalloway Member since: Jun 6, 2010
    #2
  3. Harrison Dancaster

    Harrison Dancaster UKBF Newcomer Free Member

    3 0
    Thanks @Scalloway for your advice, greatly appreciated.

    In terms of the business setting up a bank account here in the UK... is this possible without a local company?

    Also, if the subsidiary is formed, does all the UK business need to run through the subsidiary? Or is it possible to just use the subsidiary to create a local bank account and keep current operations as is, therefore barely using the new subsidiary as a result of this....?
     
    Last edited: Jul 8, 2019
    Posted: Jul 8, 2019 By: Harrison Dancaster Member since: Jul 8, 2019
    #3
  4. Scalloway

    Scalloway UKBF Legend Free Member

    15,202 3,219
    I think you need to engage a local accountant and solicitor to answer those questions.
     
    Posted: Jul 9, 2019 By: Scalloway Member since: Jun 6, 2010
    #4
  5. Harrison Dancaster

    Harrison Dancaster UKBF Newcomer Free Member

    3 0
    No worries @Scalloway, I will get in touch with a few today.

    Thanks again for your time.
     
    Posted: Jul 9, 2019 By: Harrison Dancaster Member since: Jul 8, 2019
    #5
  6. TheoNe

    TheoNe UKBF Regular Full Member

    135 14
    As @Scalloway has said you really should seek professional advice to ensure that you are fully informed before making any decisions.
     
    Posted: Jul 10, 2019 By: TheoNe Member since: Jul 6, 2019
    #6
  7. consultant

    consultant Your Business Community Staff Member

    5,448 753
    My guess is register the business with 100% of shares to the parent, however, as already mentioned, you should get advice initially in HK then, possibly, UK. Or speak to someone with offices in each location???
     
    Posted: Jul 10, 2019 By: consultant Member since: Jan 21, 2008
    #7