Opening a branch in Pakistan - UK company

[ThatDevAaron]

So we are planning to open a tech branch in Pakistan, simply for internal tech management etc and to get cheaper rates for 24 hour staff -

BUT

I want to know, do you think we will need to pay taxes in PK? My plan is to (just a plan, I dont know if its allowed, thats why i need your help) rent office space and employee 2 or 3 people, all under the UK business.

But; how would this work.

Would I need to pay taxes in PK as well (since im employing people?)?
Would I be better off registering a PK company (i'll be a citizen / have a citizen card by then in the country)?

In the eyes of the UK, would this be allowed? What rules would I need to follow? What documentation would I need to provide?

 

[ThatDevAaron]

I got a pretty good overview thanks to AI, still would love to hear what you all can add.

 

[Newchodge]

So we are planning to open a tech branch in Pakistan, simply for internal tech management etc and to get cheaper rates for 24 hour staff -

BUT

I want to know, do you think we will need to pay taxes in PK? My plan is to (just a plan, I dont know if its allowed, thats why i need your help) rent office space and employee 2 or 3 people, all under the UK business.

But; how would this work.

Would I need to pay taxes in PK as well (since im employing people?)?
Would I be better off registering a PK company (i'll be a citizen / have a citizen card by then in the country)?

In the eyes of the UK, would this be allowed? What rules would I need to follow? What documentation would I need to provide?

You need to check the law on employing staff in Pakistan. Employees are subject to Pakistan employment law and you may need to set up or contract with an organisation in Pakistan to act as the employer and run payroll.

 

[Frank the Insurance guy]

Way too complicated!

Best and easiest way is to use them as self employed full time contractors. Then you do not need to worry about employment law and associated taxes. The contractors will be responsible for them complying with any local laws and regulations.

That is the sort of set up a lot of my tech client's have taken - as the easiest route.

Alternatively, go through a professional third party employment company - they will employ locally through their own company, but you maintain the employment relationship directly between you and the "employees". The third party employment company is geared up for this type of thing and will ensure all local employment laws/taxes are complied with.

 

[Newchodge]

Best and easiest way is to use them as self employed full time contractors. Then you do not need to worry about employment law and associated taxes. The contractors will be responsible for them complying with any local laws and regulations.

Provided this can legally be done in the country concerned. I understand, for example, that being self employed in Spain is difficult.

 

[Frank the Insurance guy]

I understand, for example, that being self employed in Spain is difficult.

Are you thinking of this in terms of expats? Being self-employed in Spain isn't difficult for locals?

 

[Newchodge]

Are you thinking of this in terms of expats? Being self-employed in Spain isn't difficult for locals?

No, it is difficult for locals, there is a lot more bureaucracy involved than in the UK. This is advice generated by AI "Becoming an autónomo in Spain requires significant research and financial planning; professional guidance from a gestor is crucial for navigating the complex system and ensuring compliance".

 

[Frank the Insurance guy]

No, it is difficult for locals, there is a lot more bureaucracy involved than in the UK. This is advice generated by AI "Becoming an autónomo in Spain requires significant research and financial planning; professional guidance from a gestor is crucial for navigating the complex system and ensuring compliance".

Fair enough - thanks @Newchodge