Seeding Success

Permanent establishment in the United Kingdom

When foreign investors have to meet market and increasing administrative requirements in the UK often the demand for a stronger presence of the enterprise in the UK will increase as well. In many cases, establishing a fixed place of business or a facility represents the only way to support investors to meet these requirements and to serve the business operations in the UK. Typically, this would be addressed by the formation of a permanent establishment in the UK.

One benefit of the formation of a permanent establishment in the UK is that there are no conditions under company law to be met. A permanent establishment only has to be registered with the district municipality where it has been opened. The municipality will then share the details of the establishment with the regional tax office. Income that has been generated in the UK is qualified as commercial income and therefore subject to non-resident tax liability in the UK. As a permanent establishment has no legal personality in the UK, also the economic risk will be taken solely by the foreign head office.

A second benefit to mention is that the establishment, as well as the liquidating is easier and therefore more flexible than incorporating or liquidating a regular legal entity in the UK. Due to this fact a permanent establishment may already be profitable even though a foreign investor would like to enter only in a short period of business engagement in the UK.

How we can assist you

At some point in time a representative in the UK might become necessary instead of a fixed place of business or facility to successfully continue the business operations of a foreign enterprise. In many cases also the incorporation of a new business is required to support the business growth strategy in Europe.

Consultinghouse can support foreign investors to evaluate an individual business model and will provide guidance to identify and establish the right investment option in order to successfully touch ground in the UK and Greater Europe.

Consultinghouse UK

Klaus Schottler, CPA

Managing Director
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Copyright Consultinghouse UK 2017
*Copyright Consultinghouse 2017. All services offered on this website are provided by Consultinghouse UK Limited. Consultinghouse UK is a boutique management consulting firm and professional services provider. Consultinghouse UK provides tax and management consulting as well as services with regard to accounting of current business activities, the generation of payslips, as well as the registration for payroll tax. For legal services please contact our cooperation partner http://www.counselhouse.eu.