Import in UK being a foreign company

[zeeeeeee]

Hi!

I am a manufacturer in Pakistan and my company is a family business which has been exporting to UK and other European countries for several years. Now, in order to sell directly to the final customer we have set up a company in UK and will be importing on behalf of that company from our company in Pakistan. At this point there is no affiliation of the UK company with our Pakistan company.

I registered the company without really knowing a lot about the legal issues in Uk. Now I am wodering about a number of things:

1: should my uk company be a subsidiary or a branch?
2:can i switch the company i register in uk to a susidiary or a branch?
3: can I import in uk?
4: Do I have to pay vat?
5: During this entire time I will not be in UK. I will outsource shipping, custom clearance, warehousing,distribution. SO does this mean I do not require business immigration?
6: How should I collect money from my customers in UK? I will be selling in small quantities and they will mostly be payin in cash.

I'd appreciate any help.

Thanks

 

[mahutchinson]

1. If you are trading fully in the UK the business should be a company. Whether it should be a subsidiary or a standalone company is another question. A common structure would be to have subsidiaries in different companies under one umbrella company in the home country but these structure issues have tax implications. 2. You cannot switch to a branch but as per question 1. it should be a company. 3. Yes. 4. If you are selling in the UK and the turnover is above the VAT limit then yes. 5. If you are not in the UK at all then how can there be immigration issues ? 6. If you are collecting money in cash then obviously you will need someone in the UK to collect the money and bank it in a UK bank account.

 

[zeeeeeee]

1. If you are trading fully in the UK the business should be a company. Whether it should be a subsidiary or a standalone company is another question. A common structure would be to have subsidiaries in different companies under one umbrella company in the home country but these structure issues have tax implications. 2. You cannot switch to a branch but as per question 1. it should be a company. 3. Yes. 4. If you are selling in the UK and the turnover is above the VAT limit then yes. 5. If you are not in the UK at all then how can there be immigration issues ? 6. If you are collecting money in cash then obviously you will need someone in the UK to collect the money and bank it in a UK bank account.

Thanks a lot for your reply.

I had called up several places in UK and most people told me that you need to have business immigration to be able to import in UK. But its definately incorrect as a solicitor has also confirmed that I do not require business immigration to import in UK.

I am going to hire a solicitor for helping me out in the entire process. This will ensure I have everything covered.

With regard to collecting money from customers, are there any firms that offer such services? Or is there any deliver service provider who can do this on my belhalf?

I already have a visit visa and I was thing, since it is my first time importing in Uk, I hire a van and a driver and accompany him for every delivery and collect the money myself and deposit it in the bank. Will this be ligitimate? or will this be considered as working in UK on a visit visa and hence a criminal offence? This will mean lower delivery costs too.

I'd apreciate any help.

 

[mahutchinson]

This would undoubtedly be considered as working. If you are going to trust someone to collect money for you, you would want someone you knew well I would think. The problem is the paying cash element as paying by card or bank transfer would be far simpler and not require anyone in the UK. You will of course also require an accountant to make up statutory accounts and file them and someone needs to hold the company books, draft minutes etc. and deal with post sent to the registered office.

 

[zeeeeeee]

Thanks for the information. I have come in contact with a solicitor in UK who deals in foreign firms setting in UK. I'm am sure he will guide me through the entire process. I just hope the charges are not exhuberant. If you are aware of any solicitors who can help me out please let me know. Maybe, I'll get away with less costs.

Regards

 

[nigelmarsh]

seems you need a "Operations director " to handle orders , collect monies , organise deliveries , reconcile Income and expenses .

We are credit managers and can handle all these issues please drop me a line to discuss your requirements .

The process of executing a UK limited company is very straightforward , you man manage the operation from offshore and your uk operations director can handle the VAT , Customer relations , sales & purchases as well as any import arrangements that need to be organised .

drop me a line to discuss your requirements .

 

[mahutchinson]

A solicitor is almost always going to be exuberant. I would use a formation agent or similar to look after the books etc. and provide registered office and mail forwarding and then someone like Mr Marsh for the rest. I can deal with the company administration and registered office if you are interested.

 

[nigelmarsh]

Mike , that sounds like a plan , i look forward to working with you

 

[zeeeeeee]

seems you need a "Operations director " to handle orders , collect monies , organise deliveries , reconcile Income and expenses .

We are credit managers and can handle all these issues please drop me a line to discuss your requirements .

The process of executing a UK limited company is very straightforward , you man manage the operation from offshore and your uk operations director can handle the VAT , Customer relations , sales & purchases as well as any import arrangements that need to be organised .

drop me a line to discuss your requirements .

Hey, I tried contacting you today but you weren't on your desk. I'm going to call back tommorrow.

A solicitor is almost always going to be exuberant. I would use a formation agent or similar to look after the books etc. and provide registered office and mail forwarding and then someone like Mr Marsh for the rest. I can deal with the company administration and registered office if you are interested.

Can I have your phone number? I have already registered a company and have a registered office. What I want help in is the legal requirements I have to fulfil, tax returns, duties etc etc. I would want some consultancy regarding importing as I am totally unaware of the process. Can you help me with this?

I am not doing anything complicated. Simply import in Uk, warehouse, distribute to customers and collect payments from customers and deposit them in the company back account. Thats it.

Let me know if you can help me with this.

Regards

 

[mahutchinson]

I would recommend you talk to an accountant colleague of mine first to make sure the business plan is viable. I am happy to arrange accountancy and administration for the company and can also arrange bank account, VAT registration etc., registered office and mail forwarding, and act as secretary and also shareholder if you wish to keep the ownership hidden. Email me at the address below (remember to take out the spaces) and I will get back to you with my accountant's details and my telephone number.

 

[Kevin Hall]

We can handle everything - incorporation, bookkeeping, registered office, even tax and VAT. You would carry out all the work (customer contacts, organising transport, etc.).

If you want a fee quote, let me know your estimated turnover, quantity of sales invoices you might want us to issue, etc.

Many thanks
Kevin

 

[mahutchinson]

I think he has got two people working with him already.

 

[zeeeeeee]

Hey!
It's great that I was able to find a place such as this where I have found so many people who can help me out. Everyone I have talked to have been great and seem to really know their work. I wish I could work with you all!

Thanks for the responses!