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Registering travel company in UK for development of travel business

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I wanted to show people a different side of Britain. My tourists see not just a rainy and foggy island, but a whole separate world with its own mysteries and amazing places. The tourism business is booming, so much so that I even thought about opening a representative office in the UK. Since this process is not easy and has a lot of nuances, I decided to turn to competent specialists. The lawyers of Imperial & Legal solved all my questions and now I can calmly focus on what I love.

Jakub, 38 years old
Businessman from Israel
Clients’ names and photos have been changed

Jakub is a successful entrepreneur from Israel. He runs a flourishing travel agency that offers tours across Israel and Europe.

The United Kingdom is one of the most popular destinations. Jakub wanted to show that London was not the only tourist destination here. That`s why, he developed several thematic tours: UK’s unusual gardens and royal castles, whisky tours to the best Scottish distilleries, sea tours around the island with stops at port cities, and, of course, a Harry Potter tour that attracted children from 10 to 14 years old.

It was a bit more challenging to get British nationals interested in Israel. Jakub thought at first that being tired of cold British weather, they would be eager to sunbathe in Eilat — the southernmost and most popular sea resort in Israel. However, the sun was too scorching for northern guests. When the agency shifted its focus from sea tours to historic tours, the situation improved.

The turnover had grown so much that Jakub decided to stop working through an intermediary and set up his own UK subsidiary. He did not want to relocate to the country himself but sent his deputy here who would manage the British company.

The entrepreneur contacted Imperial & Legal for help in organising everything right.

Our client

Jakub — 38 years old, entrepreneur from Israel.

The challenge

To set up a UK subsidiary of a travel agency from Israel and organise relocation to the UK of a business representative.

The solution

This case required careful planning since a UK Expansion Worker visa could be granted only for a UK subsidiary that had not operated before.

For a new UK subsidiary, our experts chose the limited incorporation structure. It was the most practical option allowing to set up a subsidiary that would be fully owned by the parent company even if it was based abroad. The parent company would keep 100% of shares of the UK branch that suited our clients.

Having checked the uniqueness of the proposed name of the subsidiary, our specialists found out that it was already used. For that reason, a new name had to be created. It turned out to be even better since it contained an allusion to Israel. The new name was registered so that competitors could not use it. It was also necessary to add ‘Ltd’ to the company name that we did.

The subsidiary used the standard articles of association and incorporation documents. We did not have to provide a legal address since Jakub had already signed a long-term lease agreement. For the same reason, we were not asked to provide the telephone or secretary service. Jakub wanted to launch his business as quickly as possible so he found the people who were ready to start working for him as soon as all the formalities were agreed upon. Those were tourist guides, logisticians, and managers with whom he had already worked before.

After the subsidiary was registered, it could not start operation immediately. First, it was necessary to get a UK Expansion Worker visa for the business representative. We assessed the situation properly and prepared well so the visa was quickly obtained. Our experts also added the applicant’s wife and children to the representative`s visa application as dependants.

It was not allowed to hire staff before PAYE registration. After it was done, the employer could make mandatory social contributions for their employees.

Our specialists also assisted Jakub with VAT registration. We agreed that Imperial & Legal`s accountants would prepare and submit all the required reports, including PAYE, VAT, and annual financial reports. Besides, our experts helped open a bank account for Jakub since not all British banks were welcoming to foreign applicants and it is hard to know what financial organisations to contact.

Jakub`s deputy needed our support as well. We helped him and his family relocate to the UK; we found a house to rent, arranged a school education for his children, applied for insurance, and opened a personal bank account. Our legal advisor accompanied the man when he purchased a car in the UK to make sure that he would deal with reliable sellers, would not be persuaded to buy additional services, and that the contract would be drafted correctly.

We agreed to get in touch again a year later when his visa expired. By that time, he would be able to switch to a UK Skilled Worker visa. However, that required the company to have a sponsorship licence to hire foreign employees. We agreed with the CEO, Jakub, that we would get it when the time came. Or perhaps even sooner, if he needed to transfer other employees to the British office from Israel.

Jakub sets up a UK company in five month

10 March
Contact is made with Imperial & Legal
+2 days
A UK subsidiary is registered
+3 weeks
Documents and application for a sponsorship licence are prepared
+8 weeks
The sponsorship licence is obtained
+1 day
Documents for a UK Expansion Worker visa are submitted
+3 days
Biometrics are taken
+4 weeks
The UK Expansion Worker visa is obtained
+1 day
Applications for VAT and PAYE are prepared
+4 weeks
The UK subsidiary is registered for VAT and PAYE, and a bank account is opened
18 August
Jakub sets up a UK subsidiary and takes care of accounting.

The conclusion

A newly set-up company has to solve a number of issues at once. Some matters are for top managers only. However, some mundane and less demanding tasks can be successfully outsourced to professionals. It will help save time and money.

If you plan to set up a UK subsidiary and want to relocate or send a representative here, contact Imperial & Legal`s specialists who will help you draft the most efficient action plan.

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