More and more Europeans are looking to England as an obvious market for growth, however, many underestimate the practical challenges of establishing themselves correctly and effectively in the UK. Here’s how to avoid mistakes.
At CPIE Services, we have helped a large number of EU companies establish companies and open bank accounts in England. Over the years, we have seen some mistakes and pitfalls that repeat themselves over and over again.
1. The company is set up incorrectly – and that proves costly later on
Experience-based figures from EU companies and British advisors indicate that 30-50% of foreign companies have errors or omissions in their original registration. This leads to unnecessary changes, delays or additional costs.
The problem arises when the company is set up quickly online without strategic consideration. In the rush, factors such as ownership structure, SIC codes (industry code), VAT registration (if needed) or the need for local director responsibility are not taken into account.
At CPIE Services, we do it right from the start. We ensure that we have the right insight into the business and its needs. We make sure that everything from ownership to industry code and VAT is correctly registered from the outset.
We are what is known as an Authorised Corporate Service Provider. This means that we are approved by Companies House. This ensures you receive a professional and correct company formation in England.
2. Challenges in setting up a bank account
Based on our own experience, and dialogue with other English company agents & advisors, 70-80% of foreign-based companies experience difficulties in opening a bank account if they do not have local advice or a physical presence.
Most individuals/companies use an online platform to establish an English company, but when it comes to opening a bank account, problems arise. Banks expect a local address and correct company documentation (this is often missing) which means communication and applications comes to a standstill.
We help with the right set-up from the start – including address, full set of company documents and a choice of bank. Through experience, we understand the banks’ requirements and can often set up accounts where others give up.
3. Practical and administrative matters are overlooked
According to British accountancy firms, up to half of new companies fail to meet at least one important deadline during their first 12 months, which often results in fines or warnings from the authorities.
Many companies focus on getting started – but do not always have a handle on British requirements, for example payroll reporting (PAYE), accounting and reporting to HMRC & Companies House, which differ significantly from those in Europe. And that is when problems arise.
At CPIE Services, we help with ongoing obligations – and send reminders before deadlines expire. We also offer collaboration with local accountants to ensure that everything runs smoothly.
It doesn’t have to be difficult – you just need the right partner
The British market remains attractive. However, experience shows that without the right local partner who is certified (authorised to establish your company in England), the risk of errors and frustrations is high. At CPIE Services, we have helped many EU companies get started safely and efficiently – from company formation to bank accounts and operations. We are certified by Companies House and can provide the correct documentation.
Would you like to hear how we can help you establish your business in the UK without any mishaps? Let’s discuss the possibilities together.
Call us +44 1473 249024.
