FDI in the UK: making a success of Foreign Direct Investment

Despite its changing relationship with the EU, the UK remains an attractive place for foreign direct investment and provides a good springboard into the European market. If your business is taking its first steps with FDI in the UK, setting up correctly is vital.

But how do you go about setting up FDI in the UK for the first time?

Here’s our five-step path to doing business via foreign direct investment in the UK.

FDI in the UK five stages
    Planning and forecasting your expansion

Incorporating FDI in the UK requires careful planning. What’s your five-year plan? How will you fund the foreign direct investment? How will you structure your UK entity? We can help you with your UK market goals, advise on the best options and structures, quantify the likely costs and compliance requirements of setting up FDI in the UK and help you choose the best approach.

    Incorporating your business and registering for tax

Your overseas staff are unlikely to have in-depth knowledge of your UK tax, legal and employment requirements. Our specialists can handle your UK set-up, including: incorporating with Companies House, registering with the tax authority HMRC, and setting up a UK corporate bank account.

    Becoming a UK employer for the first time

Employing staff in the UK adds to the compliance load, with registering for PAYE and taking out employers’ liability insurance top of the list. Then there are the visa and immigration considerations of relocating staff to the UK. Our global expatriate service provides an employment one-stop-shop.

    Complying with tax and reporting obligations

The UK has one of the most competitive tax regimes in the G20 for inbound investment. But meeting your statutory tax filing obligations requires specialist knowledge of the UK tax code. Our subject matter specialists will give you the confidence to handle these compliance issues effectively.

    Reviewing and improving your operations

Regularly reviewing your UK operations against what you set out to achieve is the key to longer term success. Our UK FDI relationship managers are connected to specialists across the RSM international network, to keep your global business operations on track wherever you are. From operational efficiency and tax support to mergers, acquisitions and fundraising, we'll be your sounding board.

Doing Business in the UK: download the free guide

RSM’s Foreign Direct Investment team explains the key things to consider when you’re establishing a place of business in the UK for the first time.

Fill out the form to download this free guide and discover more about:

  • Forming a business in the UK - including rules around location, directors, and filing
  • The types of UK business - from private and public companies to partnerships
  • The UK tax regime - how the main taxes affect your business and your employees
  • Audits and who needs them - including detail on which businesses are exempt
  • Employing people in the UK - contracts, pay, leave, benefits, working time and more.

This guide isn’t a substitute for professional advice, so please contact our Foreign Direct Investment team to discuss your plans.

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