Import/ Export Business

[AngeUwase]

Hi

My name is Ange. I am based in South Africa and am interested in starting a small business in the UK.

After hearing many lamentations from family and friends who have moved to the UK not having access to spices, I have been thinking of starting a small shop that sells african spices.

I would like advice on the following:
*Should I register the business here in Sout Africa and export to the UK or register the business in the UK and import goods from africa?
I'm wondering where/how to go about finding information regarding tax implications for foreigners who start businesses in the UK.
*Any general comments people think would be useful.

Thanks

 

[vindico]

If you ship each shipment direstly from SA then the shipping will be more expensive as you are dong lots of small indivduual SA>UK shipments. When the shipment arrives in the UK the receiver wil have to pay VAT on the value, although may not have to pay duties for low value shipments under £135, although duty is calulate don a "CIF" basis meaning it includes the cost of shipping, packaging and insurance as well as the value of goods.

If you set up a company in the UK you can ship in bulk by air SA>UK, and then ship individual shipments out cheaply by road/post within the UK. However you will need to pay for somewhere to store the goods, and of course people to pick/pack, etc. The other advantage is that you can price your product in the UK inclusive of VAT so that your customers do not get a surprise when their imported apckage comes with a VAT bill they didn't realise would apply.

I guess it is a question of scale. You can easily start from SA immediately and just ship individual shipments, but as you grow it will probably tip over to the other model.