With the terms for exiting the United Kingdom’s agreement with the European Union still uncertain, no one can predict what will happen when the UK is no longer part of the EU. That’s why you should start making the move as soon as possible if you’re planning on offshoring your business. Here are six tips for offshoring a business from the UK.
Hire a Lawyer
There are many legalities involved in moving your company offshore from the UK so you will need to hire a lawyer who has experience with offshoring companies. Together with your accountant, he or she can help you make decisions that go along with offshoring.
A lawyer with offshore business experience can help make decisions such as where to move your company and what type of entity to set up and he or she can negotiate aspects such as office and plant leases, contracts for employees, and other business decisions.
Where Is it Going?
The first decision you will need to make is where to take your business. There are several considerations in making this decision including tax benefits, servicing clients, setup costs, and confidentiality issues.
If you have a manufacturing plant, you may want to stay within the EU, especially if most of your clients are in Europe because you will also need to consider the ongoing costs of operating your business.
What Type of Company?
Next, you will need to decide what type of company to set up. You can choose from several entities such as LLC, LLP, holding company, non-resident company, or exempt company.
The type of company that you can set up will also depend on what types are available in the country to which you’re offshoring.
Submit Articles of Association
There will be many documents to fill out once you’ve made the decision where to move the company and what type of entity it will be. These documents lay out the rules for operating your business and they are usually available as standard documents to fill out.
For instance, if you decide to move your company to Switzerland, a Swiss company formation service can provide the documents, help you register the business, and take care of many of the administrative tasks involved in offshoring for you.
Fund the Company
When you are offshoring your business, it will need to be funded and most countries require a certain amount of money to be deposited into the business accounts. In Switzerland, the amount of money that will need to be put into accounts will depend on what type of company you form. The formation company that you decide to work with can tell you how money much should be deposited into the company’s business accounts.
You will also need to choose directors for the company to meet the minimum amount required by law in the country to which you’re moving. Switzerland only requires one director or shareholder and at least one director must reside within the country.
With the help of your lawyer’s experience and a formation company, you should be able to quickly set up an offshore company.