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entry are only likely to apply in the case of business areas that are themselves regulated, such as banking, financial services, pharmaceuticals, and gaming. Regulation is typically intended for consumer protection. Fladgate LLP will be happy to advise further on whether a particular sector is subject to regulation. 7. Capitalisation Certain regulated sectors, particularly banking and financial services, have a requirement for capital linked to their business and its potential liabilities. 8. Immigration/visa considerations EEA and Swiss nationals residing in the UK by 11.00 p.m. on 31 December 2020 were able to continue residing in the UK from 1 July 2021 onwards, if they applied for settled (having resided in the UK for 5 years) or pre-settled status (having resided in the UK for less than 5 years), by 30 June 2021 under the EU Settlement Scheme. There is the possibility to apply out of time however an EEA/Swiss national would need exceptional reasons as to why they did not apply before the deadline. Any EEA and Swiss nationals who do not have status under the EU Settlement Scheme who are arriving in the UK for the first time from 1 January 2021 onwards whether for business, work, study or to live, will be required to obtain an appropriate visa prior to travel. There are also restrictions on citizens of other countries living and working in the UK, and specific advice should be sought prior to travel. There are visa categories available for those wishing to establish a business in the UK (and be involved in the running of that business) and specific advice should be sought in advance before embarking on this venture. All businesses
in the UK wishing to hire foreign migrants (who do not already hold appropriate visa status), will be required to obtain a Sponsor Licence in order to sponsor migrants to work for them in the UK. From 1 January 2021, EEA migrants who were not residing in the UK on or before 31 December 2020 will need to obtain a Skilled Worker visa before being able to enter and work in the UK. 9. Restrictions on remitting funds out of the jurisdiction
9.1 Distribution of profits Companies/Subsidiaries
A UK may only pay dividends if it has a surplus on its profit and loss account in its balance sheet. This differs from other jurisdictions where a company is permitted to pay a dividend if it will still be solvent after the payment of that dividend. There is no withholding tax on payments of dividends by a UK company (unless the company is a real estate investment trust ( REIT )). Dividends received by non-residents will be taxable in accordance with the rules in their country of residence but will not be taxable in the UK. Branches A UK branch of an overseas company will pay UK corporation tax on its profits. Since a branch is not normally treated as a separate legal entity from the foreign corporation, the branch will not pay a “dividend” to the parent, and no further tax will arise on repatriation of any profits to head office. The overseas company may be entitled to relief in its own jurisdiction for tax paid in the UK. 9.2 Transfer pricing Anti-avoidance legislation exists to prevent arrangements under which the UK operation
ILN Corporate Group – Establishing a Business Entity Series
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