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6. Barriers to entry England, and indeed the UK as a whole, is relatively lightly regulated. Significant barriers to 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. Special business or investment visa issues 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 within 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) known as the Start-up or Innovator visa. 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 There is generally no withholding tax on payments of dividends by a UK company. 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. An overseas company may be entitled to a credit for UK taxation borne by an English company in which it is a shareholder on profits distributed to it. Pursuant to some double tax treaties, a non- resident shareholder of a UK company may be exempt in its country of residence on UK dividends. Branches A UK branch of an overseas company will pay UK corporation tax on its profits. Since a branch is not treated, except for limited purposes, as a separate legal entity from the foreign corporation, the branch will not pay a “dividend” to the parent. 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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