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Session1 f&l uk business immigration, employment and ip update tom redfern - jan 2012


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Session1 f&l uk business immigration, employment and ip update tom redfern - jan 2012

  1. 1. Tom Redfern Rachel Lockwood LLB (Hons) BSc (Hons), ACA, CTA Head of Legal Partner Fitzgerald & Law Oury ClarkProfessional Advisory Services Chartered Accountants
  2. 2. GLOBAL READYInternational Growth Strategies for SMEs: The Legal Aspects of Setting up in the UK January 25, 2012, Charlotte NC Session 1 Tom Redfern, Head of F&L Legal LLP
  3. 3. AgendaIncorporation V Changes to UK Permanent Work PermitsEstablishment London San Francisco
  4. 4. UK Company Set Up Limited Company: Permanent Establishment (PE): Separate legal identity No legal identity distinct from overseas parentLiability limited to the extent of the Unlimited liability share capital (min. £1)Can own property, sue and be sued, Parent is liable for debts which maycontract in its own right, liable for its be enforced against overseas assets own debts (subject to International Law) Statutory audit is a legal Statutory audit is not a legal requirement if worldwide group requirement, no annual return to sales exceed £6.5m Companies House required
  5. 5. UK Company Set Up Limited Company: Permanent Establishment (PE): Statutory accounts of the UK Statutory accounts of the overseasCompany (not the foreign parent) parent, which owns the PE, mustmust be filed at Companies House be filed at Companies HouseDirectors and Company Secretary Permanent Representative and Registered Office Their authority Their authorityUsually perceived as portraying a May be perceived as being less better local image and profile committed to the UK market
  6. 6. UK Company/PE Set Up Action Time Notes Critical Register a PE 2 – 4 wks Nothing can proceed without Incorporate a Ltd Company 1 – 2 days registration of PE / Ltd Company VAT registration 2 months + Assume queries from HMRCImmediate Bank account application 1 month + Register for Payroll 1 week + Salaries/deductions can be calculated/ paid in the interim Employment Contracts Within 8 weeks Deadline is a legal requirementRequired Employer’s Liability 1 week Legal requirement to have ELI Insurance Corporation Tax Registration Within 3 Within 3 months of starting first months accounting period, i.e. when trading starts
  7. 7. Changes to UK Work Permits
  8. 8. Changes to UK Work Permits Facts and FiguresSummer 2010: Govt aim to reduce net migration figure to <100,00 in its lifetime (reviewing all routes) Warning: assumed the same numbers would carry on leaving as have done before1980s : 42,000 more people leave than arrive each yearTo 1997: Govt aim to minimise immigration into the UK1997 onwards: Policy changes contribute to rapid increase in migrationUntil 1994: Paper records kept of foreign citizens arriving/leaving the UK1998: Govt abolishes controls on checking visas on departure2004: 250,000 net arrivals2009: Net migration reached 196,0002010: Net migration reached 252,000: highest calendar figure on record2018: Britains population will rise by 4m to 65.6m
  9. 9. The Challenge Changes to UK Work PermitsThe Challenge for the UK Government Reduce net migration and protect economic growth Build confidence in the immigration systemSelect the brightest and best to work and study in the UK Bear down on abuse (Tier 4: Students)Less automatic settlement London San Francisco
  10. 10. Types of Work Permit Changes to UK Work Permits Tier 1: Belongs Tier 2: Belongs Sole to the to theRepresentative individual Company London San Francisco
  11. 11. Sole Representative Changes to UK Work PermitsSole Representative (not points based)• Can own up to 49% of the US and UK businesses• Should hold a senior post• Should be directly employed by the parent company• 2 years initially, can be extended for a further 3• Should not intend to carry out any other work• Eligible for NHS healthcare (free)• Can qualify for Indefinite Leave to Remain (ILR) London San Francisco
  12. 12. Tier 1 Visa Changes to UK Work Permits Tier 1 (points based) ExceptionalInvestor Entrepreneur Talent London San Francisco
  13. 13. Tier 1 Investor Visa Changes to UK Work PermitsTier 1 Investor (Points based)• The purpose is to allow High Net Worth Individuals to make significant investment into the UK. It is not linked to employment in the UK.• You must achieve a minimum number of points based on your ability to invest £1m• Is valid for 3 years and can be extended by 2 years• Investors of £5m will be allowed to settle in the UK after 3 years• Those investing £10m can settle after 2 years London San Francisco
  14. 14. Tier 1 Entrepreneur Visa Changes to UK Work PermitsTier 1 Entrepreneur (points based)• Allows you to set up/take over/ be actively involved in running a UK business• Need to have at least £200k available or £50k from an approved 3rd party funder• The money must be for spending in the UK• Is valid for 3 years and can be extended by 2 years London San Francisco
  15. 15. Tier 2 Visa Changes to UK Work Permits Tier 2 Intra-CompanySponsor Licence General Transfer London San Francisco
  16. 16. Tier 2 Sponsor Licence Changes to UK Work PermitsTier 2 Sponsor Licence• Sponsor licence for UK company required before a work permit for an employee can be applied for• The process takes longer for new companies than established companies• An Authorising Officer submits the application• Beware of UK Border Agency audit/visit London San Francisco
  17. 17. Tier 2 General Changes to UK Work PermitsTier 2 GeneralRestricted: - £20-150k pa salary - Graduate Level - RLMT - Limit of 20,700 for 2011/12 - SettlementUnrestricted: - Over £150k pa salary - No limit on numbers - Settlement London San Francisco
  18. 18. Tier 2 Intra-Company Transfer Changes to UK Work PermitsTier 2 Intra-Company Transfer• Must have minimum of 1 year’s service• Graduate Level• Short-term staff – min salary £24-£39,999k pa• Long-term staff – min salary £40k+ pa• No settlement London San Francisco
  19. 19. The EndThank you for listening
  20. 20. Tom Redfern +44 20 7430 5886 North America Office London Office388 Market Street, Suite 1300, San Francisco CA94111 8 Lincoln’s Inn Fields London WC2A 3BP +1 415 7289815 +44 20 7404 4140