Expanding into the UK – all you need to know when starting a business in the UK

The UK has been ranked the best location for international businesses looking to expand internationally. Starting a business in the UK as a foreigner can be challenging, but with right set of tools and knowledge, it’s a good place to go for when looking for overseas business opportunities. The global environment, ease of doing business and strong market potential are of interest for overseas companies.

When an international company sets up in the UK, there are a number of registration requirements, regulations and obligations that need to be taken into account. This article highlights the most important things to consider when expanding your business into the UK.

Legal structures for market entry

When setting up in the UK, there are several legal structures to choose from. Depending on your type of business, where you are based and whether you have people on board or not, you may choose amongst many options available. The most common ones are listed below.

  • Limited liability company
  • Branch office
  • Limited liability partnership
  • Sole trader
  • Partnership

Limited liability companies (LTD) are the most common form of business entity in the UK. An LTD is a separate legal entity, owned by shareholders and managed by directors. The profits of a limited company are liable for corporation tax and they are distinct from any tax on the income of the persons who own or run the company. Setting up an LTD company in the UK is a well-recognised structure that is quick and cost-effective to complete. However, a UK law places a number of legal obligations and reporting requirements, which can be time-consuming and complicated.

Another usual method for foreign company is to establish a branch office. As opposed to an LTD, a branch office is not a legal entity from the head office company. However, setting up a UK branch requires Companies House registration and registration with HMRC for direct tax, VAT (Value Added Tax), PAYE (Pay-As-You-Earn) / NIC (National Insurance Contributions) as appropriate. Full responsibility for the operations, debts and liabilities of the UK branch lie on the overseas parent company.

Limited liability partnerships (LLPs) are increasingly used as a tax efficient vehicle for international companies setting up in the UK. An LLP can be formed by two or more people and need to be a lawful, commercial venture that is operating for profit. An LLP is flexible solution particularly when distributing capital and profits, and correctly structured won’t be subject to UK tax. However, a public disclosure is required and the profit can’t be retained in the same way as in LTDs.

Sole trader business is most commonly used when setting up a small business in the UK. It’s the simplest way for a person to trade alone as a self-employed individual without forming a company. Sole trader is easy to set-up and doesn’t require filing information publicly. However, the individual is personally liable for any debts the business might have.

In a partnership, you and your partner(s) personally share responsibility for the business.  Partners share the business’ profits and each partner pays tax on their share. A partner can be any ‘legal person’, such as a Limited Company. Partnerships are generally easy to form, manage and run, and partners are able to share the liabilities of the business. However, the financial risk might be high (even if the responsibility is shared) and disagreements between partners are possible. Also, partners must pay tax in the same way as sole traders by submitting a Self Assessment tax return each year.

Get in touch with Goodwille’s Legal Department to get more information on the most suitable legal structure for your business.

Set-up and registration

A newly incorporated company can be typically registered with the Companies House in 48 hours once all documents are completed. A UK company must register for corporation tax with HMRC, within three months of starting to trade. The paperwork for registration is not too extensive, however, certain statutory documents are required.

Bank account

In order to make any transactions, you’ll need to open a UK bank account for your business. Opening a bank account is a time-consuming process as banks need to go through complicated money laundering requirements to ensure your company is credible for a corporate bank account. Therefore, prepare to have time and patience for this stage, it can easily take up to three months or more to complete.

Check if your bank in the company’s home country has any operations in the UK. In some cases, this might speed up the process, as it may prove some creditworthiness for the business.

If the bank account opening process proves to be longer than excepted, Goodwille can provide a client account which can be used temporarily to make transactions while you wait for your bank account to be opened. Get in touch with our Finance Department to get more information.

Regulations

Starting a business in the UK as a foreigner is a journey full of new opportunities as well as responsibilities. The regulatory system in the UK is very open and transparent, making it easy to do business. In general, the UK aims to minimise bureaucracy and deregulate marketplaces in order to allow companies to develop and expand. However, there are very strict regulations in place that a company needs to be aware of (e.g. with regards to employment, industrial emissions, pollution monitoring and control, and waste disposal). Make sure you are aware of the regulations that directly or indirectly affect your business!

All businesses operating in the UK are subject to the UK law, and every company registered in the UK must have a registered address in the UK. For limited companies, financial transparency is required and annual audited reports must be submitted to the Registry of Britain (Companies House).

In order to keep the business legally running, a UK company must file annual financial statements with Companies House within nine months of the end of an accounting period. Also, an Annual Return must be filed with Companies House every 12 months (within 28 days of the anniversary of incorporation).

To get all the details in order and prepare for the regulatory areas, you should look for specialist advice. Contact Goodwille’s Corporate Legal Department today if you have any questions regarding regulations or your business’ obligations in the UK.

Tax

Foreign businesses looking at overseas business opportunities in the UK will find a competitive and business-friendly tax regime. Companies need to consider their exposure to UK taxation, including corporate income tax, value-added tax (VAT) and employment taxes. Companies that are incorporated in the UK, or foreign companies with central management and control in the UK, are subject to a tax prevailing rates on their worldwide income including ordinary income and capital gains.

Companies may become subject to UK taxation in a number of ways, such as

  • Establishing a formal taxable presence in the UK (via a subsidiary company or permanent establishment).
  • Registering a company for VAT in the UK. Companies must be registered for VAT if their taxable turnover for any 12 months period is £85,000 or over. The current standard VAT rate in the UK is 20%, which is the rate used by most of the businesses.
  • Suffering UK withholding tax at 20% on interest or a royalty income received from a UK resident company.

It’s important to remember that a foreign business operating in the UK doesn’t necessarily create a taxable presence in the UK. In order to be subject to the UK corporation income taxation, an overseas business needs to be trading in the UK through a permanent establishment.

Employment

When employing people in the UK, you need to be aware of several regulations within UK employment law. To start with, make sure your employees have the right to work in the UK (that they hold a valid UK/EU passport or work permit/visa) and see if they have a NIN (National Insurance Number) for the deduction of taxes. Also, remember to follow the guidelines for UK employment contracts and provide these within 8 weeks of starting the employment.

In addition, you need to register you employees into PAYE (Pay-As-You-Earn: social costs of employment including income tax and National Insurance that you as employer needs to pay to HMRC), and organise with company insurances as appropriate. Every employer in the UK must also enrol their employees into the workplace’s pension scheme within three months after the start of the employment.

In terms of the compensation, you must ensure the employees are paid at least according to the National Minimum Wage in the UK. As the recruitment market in the UK is highly competitive, also make sure your remuneration package is attractive enough and fits into the scope of the role.

If you are recruiting in the UK, you may want to turn to specialists who can help you with all the employer regulations and responsibilities you need to consider in the UK. Goodwille’s Human Resource Department deals with these issues daily and are happy to help if you have any questions along your recruitment process. When you are a small business setting up in the UK and not having the same resources than your larger competitors, you may want to invest in professional advice to make the people management processes more effective.

To conclude

UK’s highly potential market provides great opportunities for growing your business, however starting up a business in the UK is a challenging process full of regulations and liabilities. In order to get the set-up processes and ongoing compliance right, it’s good to turn to professionals who are able to provide you with advice  and all the necessary help you need to get your business operations up and running according to UK regulations.

If you are a foreign-owned business looking to expand into the UK, Goodwille can help you to get the inside track. We have been helping Nordic businesses to expand in the UK for 20 years, and are experienced in legal, finance, HR and payroll services in the UK. With a track record of supporting almost 2,000 businesses in the UK, we have extensive experience to help you grow your business. Get in touch with us today, if you are planning to expand to the UK or have any questions regarding the UK market.


Useful contacts for your business

When expanding your business to the UK, there are many organisations you may find useful.

Networking-wise, it’s good to get know your local chamber of commerce and see if their network is worth accessing. For example, Finnish-British Chamber of Commerce and Swedish Chamber of Commerce provide good opportunities for professional networking.

Also, when developing your strategy for the new market, Department of International Trade (DIT) provides free advisory and supports companies with their UK strategy and planning.

4 important steps for setting up a business in the UK

The UK is an exciting location for foreign businesses looking to expand internationally, as it is full of opportunities and business potential. It is however important to be aware of the many rules, obligations and regulations that come with setting up a business in a new marketplace. This article will provide you with an overview of four things to consider when setting up a new business in the UK.

Step 1 – Type of trading entity
One of the first things you must decide when starting a business in the UK is which legal business structure to choose. Below are the main routes into the UK market, and depending on the type of business and your intentions for UK market, different setups will be suitable. In finding the best route to market for your business, it is a good idea to look at the legal differences between the structures as well as any tax or other implications. You may wish to seek specialist advice on the differences between these types of entities, the up and down sides of them, and which entity that suits your business and you intentions of the UK market.

  • Limited company (private or public)
  • Branch office
  • Partnership
  • Sole trader
  • Distributor or agent

You can register your company online, but it is important to make sure you get all the bits and pieces right, and that you are aware of any reporting and filing requirements for the business. If you are unfamiliar with UK business, Companies House and statutory filings, we strongly recommend you seek professional advice and help. Goodwille’s Corporate Legal Department deal with these issues daily, and can advice and support you when setting up the business.

Step 2 – Bank account

In order to make any transactions, you will need to open a UK bank account for your business. Opening a bank account is a lengthy process as banks are required to go through long money laundering requirements to open a corporate bank account, so ensure that you allow time and patience for this. If you have a bank account for your business in your home country, check with your bank to see if they have operations in the UK which in some cases can speed up the process, as it proves some degree of creditworthiness for the business.

If the bank account opening process proves to be longer than anticipated and you need to urgently make transactions, Goodwille can provide a client account that you can temporarily use for transactions while you wait for your account to be opened. Get in touch with our Finance Department for more information.

Step 3 – VAT or not
You may also look to register your company for value-added tax, VAT in the UK. Companies must be registered for VAT if their taxable turnover for any 12 months period is £85,000 or over. The £85,000 threshold has been agreed to remain for at least two years from 1 April 2018.

The current standard VAT rate in the UK is 20%, which is the rate most businesses will charge. Some goods and services are reduced to a 5% rate and some are exempt from VAT so make sure you know which rates that applies to your business!

Step 4 – Employment
Now that the company, bank account and VAT is sorted, you need to employ people to get the money rolling and the business moving forward. When employing people in the UK for the first time, there are several things you need to bear in mind – whether you are bringing employees from your foreign company or employing in the UK.

  • One basic thing that people may take for granted but that shouldn’t be neglected is that you need to make sure that people you employ are eligible to work in the UK. Make sure they have a UK or EU passport, or that they have a work permit/visa!
  • All workers are covered by the law of the jurisdiction in which they work, meaning that your UK employees will be subject to UK employment law. This means it’s important to make sure that your employment contracts are based on and compliant with UK employment law. The contracts should cover and set out the employee’s duties, responsibilities, rights and employment conditions.
  • You need to register your employees for PAYE (Pay-As-You-Earn, social costs of employment including income tax and National Insurance that you as an employer needs to pay to HMRC) and organise with necessary company insurances.
  • Make sure you offer your employees a pay that is at least National Minimum Wage, and that you offer sufficient benefits to their responsibilities and scope of work. There are benchmarks for salary levels and benefits depending on industry, experience etc. that can be good to use as guidelines to make sure your remuneration package is attractive and reasonable and that you don’t offer “too much” or “too little”.
  • There is a requirement to enrol your employees on a workplace pension scheme. This is called auto-enrolment and as an employer, you must automatically enrol all your employees on a pension scheme three (3) months after the start of their employment. Employees must actively opt-out of the pension scheme if they don’t wish to receive a workplace pension.

We offer HR and People Management support, and can help you sort everything employee-related – from employment contracts to benefits, pension and payroll. Get in touch with our People Management Department if you have any questions.

In summary

All these things might seem straight forward when outlined here, but the truth is – it’s not always as easy as it seems. There are rules, laws and regulations you need to be aware of and make sure you follow to avoid a hefty fine, or even worse – being taken to court.

Goodwille have 20 years of experience helping foreign businesses in the UK, and can support you with everything you need to get your business started. With a track record of helping nearly 2,000 businesses in the UK, we have all the experience and resources you need to succeed with your expansion.

Get in touch with us today if you have any questions about doing business in the UK or if you want more information on the support we can provide to your business.

HMRC announcement on EMI options

HMRC have announced that the EU State Aid approval for the EMI scheme expires on the 6th April 2018.

The UK Government has applied to the European Commission, but it is has now been made apparent that it will lapse before new approval is obtained. HMRC considers that the State Aid approval applies to the granting of share options and therefore that share options granted up to and including 6 April 2018 won’t be affected by this lapse in approval. HMRC will, up until the 6th April 2018, continue to apply its current guidance & practice in relation to employment-related securities options validly granted as EMI share options.

Therefore:

  1. EMI share options granted between the period of the 7th April through until the new EU State Aid approval may not be eligible for the previous tax advantages.
  2. Organisations may wish to consider delaying the grant of EMI options until the EU State Aid approval is obtained.

For more information on how this may impact your existing EMI scheme do not hesitate to contact our Corporate Legal department.

We’re recruiting – Corporate Legal Controller

THIS VACANCY IS NOW FILLED. CHECK OUT OUR CURRENT VACANCIES HERE.

Goodwille is a forward-thinking, ambitious company dedicated to providing foreign businesses with the professional services required to establish themselves and flourish in the UK. These include Corporate Legal, Finance, People Management, Payroll & Virtual Offices.

We are currently looking for an experienced Corporate Legal Controller, preferably fluent in a Nordic language, to join our Corporate Legal team in London and provide company secretarial and legal advice and services to a range of international and UK clients. While you will primarily work with the Corporate Legal team, all our departments are integrated and you will also find yourself liaising with other departments, such as HR, Finance and Payroll departments on a regular basis, and attending frequent team, company and client meetings.

You will be responsible for
• a portfolio of existing and new clients; being the main point of contact for and managing the corporate legal services for these
• managing and supporting existing client accounts, including maintaining statutory records and registers, taking board minutes, striking off/liquidation etc.
• managing new client accounts, including company incorporation, VAT registration, opening bank accounts, insurances, data protection, health and safety etc.
• ensuring timely filings to Companies House, HMRC and other agencies
• reviewing statutory books as part of company health checks and annual statutory audit
• special client projects

We believe that applicants have good knowledge and experience of company secretarial work, and preferably experience working in an international environment and/or handling employees and operations in different countries.

In joining us, you will become part of a modern, forward-thinking and inclusive organisation, capable of offering a stimulating environment working with a diverse range of client companies and corporate legal issues.

This is your chance to join #TeamGoodwille – check us out on Instagram. When you join Goodwille you get access to a whole range of employee benefits, all designed to ensure an enjoyable work/life balance. Some benefits for all employees include:

  • Office fruit every week
  • Employee perks, rewards & benefits including discounts on supermarkets (Sainsbury’s, Tesco etc.) high street stores (Topshop, John Lewis etc.) & gyms
  • Complimentary phone insurance, as we know how important it is to stay connected
  • Access to the well-being & lifestyle platform, including eating advice, exercise routines and yoga videos
  • Generous social budget for team lunches, parties and for you to hang out with colleagues.

Job type: Permanent, full time
Location: Kensington, West London
Salary: Depending on experience/skill set

If you like the sound of this vacancy and all the features and benefits you get by being part of a team like Goodwille, then please contact vidou.motee@goodwille.com.
www.goodwille.com

Freedom of Establishment – Corporate Mobility

Often labelled as “passporting”, Corporate Mobility means that once a company is established in one EU member state, others will need to recognise it as validly established legal entity. As a result, an established company can sell goods or services to other EU countries, in principle without needing to establish a branch or subsidiary there.  In some instances, member states’ tax rules will still require establishment of a local entity. An example here is the UK legal obligation to form a “UK establishment” (subsidiary or branch) when certain criteria are met. Several questions come to mind in relation to the future of this freedom…

Will you need to establish an entity in the UK to run operations smoothly?
If you have a UK Branch, should you form a subsidiary to strengthen your UK base?

Answers to these questions will vary depending on where your company is based, as well as what Brexit scenario the future holds – will there be a “hard Brexit” or not, how long is the transition period, will Mrs May negotiate a solution for corporate mobility?

To illustrate the background: Most continental EU jurisdictions (e.g. France, Germany) adopt the “Real Seat Theory”. This means the company will follow the company law where it has its real seat, being the location of the company’s centre of management or central administration. The second theory, called “Legal Seat Doctrine” (adopted, for example, in England), the applicable company law is determined by the jurisdiction where the company is incorporated.

This means that a UK established company, whether or not it is a foreign subsidiary or not, will retain its legal status in the UK irrespective of the Brexit model applied. Depending on business carried out in other EU member states, your UK established company may need to explore whether you should set up an entity in another EU country if you do not currently have such an entity. This will be particularly relevant for companies registered in one of the UK jurisdictions but having their central administration in a “Real Seat Country”.  Those types of businesses may risk to be regarded as unincorporated associations following Brexit, thus potentially losing their status as legal entity in those other member states.

On the flip side, if you are currently operating an entity outside the UK and are carrying out regular business with the UK, you may not have the benefit of being regarded as legal entity in the UK. Depending on your exposure to the UK market and business plans, you may wish to consider setting up a UK Limited company to strengthen your base. Whilst it is not possible to advice on what precisely will happen, we have seen this used as a contingency approach during less certain times.

Watch this space for a detailed analysis on any indications we have seen so far on how the UK is looking to fare with your Corporate Mobility!

 

 

If you have any questions about Corporate Mobility,
get in touch with Tessa Schrempf,
Corporate Legal Controller at Goodwille.
tessa.schrempf@goodwille.com


This update is for general guidance only. Specific legal advice should be obtained in all cases. This material is the copyright of Goodwille Limited (unless otherwise stipulated) and is not to be reproduced in whole or in part without prior written consent.

Free Movement of Goods

The free movement of goods is one of the cornerstones of EU law and business. It essentially is a two-sided coin, and provides for tariff‑free access to the single market and the elimination of non‑tariff barriers such as product regulation and approvals.

The issue concerning the status of UK rules vis-à-vis laws pertaining to the movement of goods and services, as well as changes to the VAT system, increasingly captivates our interest day by day. As the UK hopes to achieve a bespoke agreement, the British government will seek to maintain the closest relationship with the EU and, as UK Prime Minister Theresa May was heard saying during her Florence speech, a frictionless trade agreement between the bloc and the UK. The Draft Withdrawal Agreement published on 19th March 2018 supports this approach. One of the clauses both parties have agreed on stipulates that any good that was lawfully placed on the EU or UK market before 31st December 2020 should be able to continue to circulate freely until reaching the end-user. The existing rules on free movement of goods will largely remain in force during the Transition Period, with some applicable exceptions.

These developments are at least an interim departure from Mrs May’s ruling out of remaining in the single market or customs union. It remains to be seen how the post-Transition Period deals with the matter of freedom of goods, but future developments do not necessarily threaten frictionless EU-UK trade. UK industries and their respective sectors are highly integrated with the single market; the Office of National Statistics (ONS) state that over 59% of UK imports are of EU origin, whilst 48% of UK exports end up within the community.

It would not be in Britain’s interest to lose free-trade access to the EU, as the UK would lose access to countries with which the EU and European Economic Area (EEA) have also been negotiating free trade agreements. Moreover, a weakened Pound Sterling at the outset of the June 2016 Referendum, has seen demand for UK-built goods abroad increase, as exports became cheaper, and tourism saw improvement, where visiting the UK became more affordable. There is scope to protect frictionless trade in goods and services and to secure proper VAT processes following Brexit.

VAT and the flow of goods and services are symbiotic, and they will adhere too much of PM May’s rhetoric concerning the maintenance of seamless trade with the EU – predictability. Voices that declare that Brexit means “taking back control” are purported, as past decisions made by the European Court of Justice will be influential in the continued interpretation of VAT law in British law. The EU VAT Directive have been soaked up by British courts, and this is another signal that the path Britain is taking concerning goods, services and VAT will be governed by the virtues our company seeks to aspire to: predictability and reliability.

Additionally, issues concerning the future of services or goods do not seem to be so challenging at this stage, many self-accounting rules for VAT on services bought from the EU will remain broadly unchanged and there could be further opportunities; especially if one considers that EC Sales List declarations may not need to be completed. This suggests an orderly process of transposition and transition in a post-EU UK as being the name of the game.

In areas concerning the exchange and freedom of movement concerning technologies, the UK seeks to maintain its position as a leading provider and market for hi-tech industries. Upon reading the UK’s Industrial Strategy Paper in November, the UK seeks to increase innovation by raising total research and development investment to 2.4% of GDP by 2027. Over £1 Billion will be invested to boost Britain’s digital infrastructure, £176million for 5G and £200million invested to foster full-fibre networks in the UK. Equally important is the UK’s drive to invest £20 billion into innovative and high potential businesses.

 

 

If you have any questions about Free Movement of Goods,
get in touch with Alexander Goodwille,
CEO at Goodwille. 

alexander.goodwille@goodwille.com

 


This update is for general guidance only. Specific legal advice should be obtained in all cases. This material is the copyright of Goodwille Limited (unless otherwise stipulated) and is not to be reproduced in whole or in part without prior written consent.

Our guide to become GDPR compliant

As advisors supporting businesses in the UK, we would like to inform you of the new Data Protection legislation, the EU General Data Protection Regulation (GDPR), and its related implications for your business. We want to ensure that you are aware of the new legislation, what measures your company have to take in order to comply with the regulation, and how Goodwille can assist you in becoming GDPR compliant. This guide provides an overview of the new regulation, and what you can do to ensure you and your business are prepared for the changes to existing legislation.

The GDPR is enforced on 25 May 2018, replacing the existing EU Data Protection Directive. The regulation significantly increases the obligations and responsibilities for businesses in how they gather, use and protect personal data. At the same time it strengthens European citizens’ data privacy and right to access their personal data by setting out additional and more clearly defined rights for individuals whose personal data is stored by businesses.

Below are some of the main considerations on how to prepare to become a GDPR compliant organisation:

Identify problem areas in your business by reviewing and enhancing your organisation’s risk processes

This can be done by making an inventory of all personal data the business holds, why the business holds it, if it is still needed, and if the data is safely stored.

Communicate with your clients and employees

You will need to ensure that your clients and employees are fully informed about how their data is used and that your company has procedures in place cover all the rights individuals are entitled to, e.g. the right to access their data or have it erased from your systems.

Data subject access request

Every individual has the right to make a data subject access request. This means that the individual has the right to obtain all the personal information your company stores about the individual within one month from the date the request was made. You will need to ensure that you have measures in place to deal with any such request within one month’s time.

Consent to store individuals’ data

An individual’s expressed consent has to be freely given for a company to be allowed to gather and store any personal data. Note that an individual cannot be forced into consent or be unaware that they are consenting to their data being stored e.g. through pre-ticked boxes, but the consent has to be actively given by the individual.

It is essential that your business is mindful of data privacy in all ongoing and future projects, as you will face heavy fines if not. The GDPR is based on the one stop shop mechanism signifying that organisations engaged in cross-border processing of personal data will deal with a single lead supervisory authority. Your company’s lead supervisory authority will be the authority of the country in which your business has its main establishment.

To ensure that your business is compliant before 25 May, it’s time to put a GDPR policy in place or draft board minutes to show that your company is working towards becoming GDPR compliant. Goodwille are happy to provide you with further guidance on the GDPR, help set up a company policy or draft board minutes containing information on how your company is working towards complying with the regulation. Get in touch with our Corporate Legal team today for assistance or if you have any questions. This article also provides a good foundation for understanding the GDPR and its implications for your business.

 

GDPR and your business

Any business looking to set up a subsidiary in the UK, or anywhere in the EU, will have to have at least a basic understanding of the General Data Protection Regulation (or GDPR). The Regulation is the biggest shake-up of individual rights to their personal data of the Internet age and will have a major impact on how data is stored and shared within and without the EU.

What has changed?

From May 25 2018, the regulations change to unite all local privacy laws across the EU – changing the definition of what constitutes personal information to include names, photos, email addresses, and even a computer’s IP address. This applies across a person’s whole life, there is no distinction between a personal email and a work email, for example.

The new rules also introduce new rights for consumers, including the right to be forgotten, the right to know what data is held, the right to object to receiving marketing and the right to have information about them corrected. This means that explicit consent must be received from the consumer for each use of their data before it happens, meaning separate consents are needed for different activities.

What does it mean for my business?

It is vital that businesses comply with the new regulations, with tough penalties in place for non-compliance, up to a 4% fine of global revenue. This applies even to non-EU companies who hold the data of EU citizens, or EU companies who process data outside the Union. While it is a good idea to appoint someone to oversee the transition to the GDPR rules and ensure compliance, it is more than just an IT issue. Sales and Marketing are two of the areas most directly affected.

The most important measures to take are to ensure that you have procedures for properly obtaining the right consents from customers, a policy on what data is kept, where and why, storing the data securely, ensuring that old data is deleted and ensuring there is a procedure for deleting or amending data when requested.

While most of these needs are just good housekeeping anyway, they will soon be enforceable by law. It is very important that all businesses not only understand what GDPR means, but that they also have a plan to transition. Our team of legal experts can help you with guidance and answer any questions you may have about GDPR and how it can affect your business. Get in touch with us today!

Do you need insurance for your UK office opening social event?

Do you need insurance for your UK office opening social event?

Many small UK businesses host informal parties for their staff and clients during the festive season and to celebrate special promotions and events during the year. However, did you know that your new business premises in the United Kingdom may not be covered for such events under your existing business insurance?

Your liability if you serve alcohol to your visitors or employees

If you decide to serve alcohol in your office, you could be held liable for any booze-related incidents. In fact, in the UK you could find yourself on the wrong end of a law suit if any of the following incidents are deemed to have occurred because those involved had consumed alcohol at your party:

• damage to property
• bodily harm
• sexual assault or harassment
• underage alcohol consumption
• drink-driving related accidents

How can alcohol liability insurance protect your business?

Even if the extent of your alcohol serving merely entails a bottle of mulled wine and a few beers in the office after work on Christmas Eve, you must have a Liquor Liability Insurance policy in place.

Your policy will cover any claims made by guests who were injured or who had items of property damaged by other attendees who were intoxicated. This cover also includes legal fees and covers any damages that may be sought and awarded. Although your standard business insurance policy won’t cover alcohol-related incidents, you can generally have it updated to include Liquor Liability Insurance as an additional endorsement.

Another method of getting Liquor Liability cover is to take out a stand-alone special event insurance policy. This may work out slightly more expensive than an endorsement to your existing UK business insurance policy, so have a chat with a good financial adviser to explore both options so that you secure the best deal for your circumstances.

It’s worth noting that, even if you only serve someone one drink at your office bash, you could still be liable for incidents that occur if they go on to paint the town red subsequently. Liquor Liability Insurance will cover you for such eventualities.

In conclusion

If you’re planning on serving your staff or clients with alcohol at an informal social event on your new UK business premises, you must consider taking out Liquor Liability Insurance cover. The extra premium will be a small price to pay for your peace of mind.

For more advice on local law when setting up a UK office, contact the team at Goodwille.

4 Things to Consider When Starting Up Your Own Business

For many people, starting a business is a lifelong ambition, but while it comes with many perks, there are a number of challenges that business owners will face. If you are interested in starting up your own business, there are many factors to be aware of so that you can prepare yourself for the pitfalls along the way.

Here are four things to take into account when starting up your own business.

1. You need to have enough money

Before you take the extraordinary leap of faith, you need to be able to make sure you have enough money saved up in order to tide yourself over. Starting and running a business does not mean that you will be raking in a lot of money. Businesses have to start somewhere and they tend to start slowly – success will not come overnight.

Save up enough so that you can fund financial commitments (e.g. rent, bills, mortgage, car payments, etc.) It is often recommended that aspiring entrepreneurs should save up around a year’s worth of income. Try to start your business while working in your job rather than quitting to start the business. Also, see if you can make sacrifices in other areas to save on costs (i.e. house sharing, trading in your latest car for a cheaper model, food shopping on a budget etc.).

2. You need to be passionate, dedicated and committed

There is absolutely no point in starting a business if you are not prepared to put the work in. As previously mentioned, business success will not happen overnight. Be patient and be prepared to put the effort and graft in because it will take time to build up your business (estimated time: between five and ten years).

3. You need to have a thick skin

The reality is that not everyone will see your vision. Unfortunately, some people may judge and criticise you for starting a business. You need to be confident and assertive in your ambition, and prevent the naysayers from stopping you from achieving your dream.

4. Think: is your business worthwhile?

You need to think about the position of your business in the market sector. What can your business bring to the table, so to speak? Who are your competitors? What makes your business stand out? What problems do potential clients have and what solutions can your business provide?

By taking these important factors into consideration when starting up your own business, you can be sure to be prepared for the challenges along the journey to success. At Goodwille we have seen many a businesses grow and flourish, and can help you make sure you have all you need to succeed with your business ideas. Contact us today – we’re here to help!