Indian Business see USA and UK has primary international targets and gives international exposure and increase marketing potential to UK and Europe. European companies prefer doing business with UK companies
UK is a favorable market for Indian business as they are able to operate a UK company living in India – they do not need to visit the UK even to open a UK bank account. The directors can be non-resident. A UK company is cheap to setup and maintain with very few compliance and reporting requirements. The Cost of a dormant company is only a few hundred pounds.
The only issue to contend with is the double tax treaty which may result in UK profits being taxed in India as the double tax treaty gives taxing rights from where the effective place of management takes place though this can be circumvented depending on the nature of control. However with the UK Corporation Tax rates falling and will reduce to 17% then maybe even lower this does give possibilities of reducing the Group Company effective rate of tax.
VAT registration may also be a problem if there are no fixed or business establishment in the UK our experts can discuss this with you.
Following Brexit, it is likely to become more difficult for Indian business to bring personnel over to the UK hence it may be better to setup the infrastructure now than later and obtain sponsorship licenses. In addition due to expatriate tax and social security reductions in the UK the cost of hiring could be much lower than expected. See Blog
There will still be opportunities for Indian companies to make inroads in the UK market after Brexit especially those offering IT services.
We specialize with Indian business as we understand how they operate and the issues they may face in the UK. We guarantee to find a solution whatever the requirement or problem our clients may face.
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