UK Subsidiaries & Branches of International Companies
Overseas companies usually establish a UK subsidiary or branch with the intent of expanding the group’s share of its UK and EU markets.
Once the UK establishment is created, fresh challenges arise. These typically include:
- The need for reliable and regular reporting of financial data back to an overseas headquarters.
Attention to legislation as it affects the UK operation, including
- Employment law
- Pension obligations
- Taxation of employee benefits
- The implication of commercial leases
- The legal framework in which the branch operates
- The application and impact of different transfer pricing scenarios
- Differences in financial reporting requirements between UK GAAP and the regime applicable to the parent company
We find the UK operations of foreign owned businesses are rarely sufficiently skilled to handle the various challenges. This is where KRA can add value as we can handle most situations relating to the UK branch , but we will call on the expertise of specialists as required. For example, we may need to engage with employment law solicitors to convert group employment contracts into contracts that meet UK requirements. On other occasions, we may need to engage with Chartered Surveyors for lease negotiations. Throughout, we act as a one-stop-shop to provide the overseas parent with UK-compliant solutions.