Setting up a business (US company, in UK)

Brassedoff

CKhalvashi wrote: »

her :eek:

CK

I have a pair of swinging cojones mate!, but thanks.

OP, when we do a licensing agreement either UK out or into the UK, you need to consider a lot of things. To be honest, I am still struggling to get my head around the UK manufacture bit. I am involved in nine manufacturing firms. Only one manufactures in the UK and that's because a local authority gives us a free shed with nil BR on the contract that we put a made in (the country of the Uzk) and employ over 50 people from the local. Otherwise it would be the case of doing it in Korea, where no one can really compete itch the tier one manufacturers costs.

You need to get in place several agreements.

1. Partnership agreement (save harmless)
2. EEA exclusive distribution agreement (look closely at that, it is surprising where it allows you to trade).
3. Bottome and top cost per unit, plus or minus 5%
4. assignment of IP or Authority to act as assignee in the EEA & British Commonwealth Trade Area
5. Guarantees on the financing of the office and other physical costs.
6. Bond
7. A stock level, a cover level to account for shipping.
8. Outline when UK has to pay tribute to the USA business.
9. UK location (remember, most people in the USA think everyone is in London. To us Bridtol is mile away from London, in the USA, they have a totally different outlook on 100 miles as a distance)
10. Contract
11. Banking, a USA currency account that will have to be hedged once a year.
12. All UK sales, even to the USA company will attract VAT.
13. agreement on business hours (subject to where they are in the US, they will want to ensure they have the majority of THEIR day covered. Our/my New York Offive has cover two hours before and during US a lunch by the UK. The states covers up to 10pm in the UK.
13(a), UK/US export licsence
14. Anything else and I charge!

To be honest, unless you are talking £300K and above there are far, far easier ways of doing it. The overriding thing is your own job security.

Brassedoff

paddyrg wrote: »

Even if sales are made via the US, VAT is likely to be an issue. You need to ask your accountant about this.

if the sale is made in the US, you have up to three local taxes you have to apply and pay at source. That's why firms like Amazon have US, UK, Canada websites. For LST, VAT, GST.