Inward investment |
Establishing a business |
Staff and recruitment |
Financial regulation |
Property | Tax
regulation | Financial
assistance
The following section provides the answers to questions inward
investors often ask. If your question is not answered below please
send it to us by
email,
providing any background information and your contact details.
Inward investment
What assistance can the City of London offer to new
investors?
The City of London Inward Investment team is able to provide
free assistance in the following areas:
- General advice and assistance on setting up your business
here
- Financial Services Expertise
- Identification of suitable office space
- Contacts and connections to help you identify support
organisations such as accountants, lawyers and suppliers
- Research and information
Can the City of London introduce me to professional service
providers and suppliers in the UK?
Yes, the City of London is well connected and has a wide network
of professional advisors and suppliers it can contact through its
inward investment partners.
What type of legal advisory services can the City of London
provide to a company?
The City of London is happy to provide general business advice
to help you establish and run your business, however it does not
provide specialist professional advice on legal, regulatory or tax
matters. The City, however, will be happy to put you in contact
with a number of high quality organisations who can assist you with
specific enquiries.
How can the City of London assist/support companies in
getting listed on the London Exchanges (LSE, AIM)?
The City of London can provide general information regarding the
stock market and listing. It can also ensure you are put in contact
with the appropriate stock exchange representative to answer
specific enquiries.
Can the City of London assist in providing company related
information for firms based in the UK?
The City will be happy where possible to assist with specific
research questions - please
email your
question.
Where can I find information on a particular industry /
sector of the economy?
The City of London undertakes a wide range of research in areas
related to the financial services sector. Please see the
economic research section of this website or, for more specific
questions, please
email.
Establishing a
business
How do you register a company in the UK?
Companies House is the organisation responsible for registration
of businesses in the UK. Their website provides full information on
how to register a business, documentation required and the fees
involved. For more information please visit:
www.companieshouse.gov.uk.
Staff and recruitment
Do I need a visa to work or establish a business in
London?
If you are a UK or Irish citizen, a national of the European
Economic Area or have been granted leave to remain in the UK you do
not need a visa to work in London. However, if you do not meet
these criteria you will need some form of visa to live and work in
the UK. You should obtain professional advice to help assist you
determine the most appropriate visa type for your business.
Where can I find salary information?
The City of London can provide salary information directly.
Please email
with details of the roles in which you are interested.
Financial
regulation
What is the role of the Financial Services
Authority?
The Financial Services Authority (FSA) is an independent body
that regulates the financial services industry within the UK. For
more information please visit
www.fsa.gov.uk.
What are the regulatory requirements to establish a
representative office/branch?
Representative office: A Representative office
does not require FSA approval but it is not able to carry out any
regulatory business e.g. taking deposits. The Association of
Foreign Banks has an informal Representative Offices Forum which
meets quarterly and may be of interest to representative offices.
Please contact John Treadwell for further information, +44 (0)207
283 8300, email
john.treadwell@foreignbanks.org.uk
Branch office: Branch offices remain part of
the parent company legal entity and would therefore principally be
regulated by the home country authorities however they would still
need to be authorised by the FSA.
Subsidiary: Companies set up as an incorporated
company in the UK would need to comply with EU capital
requirements. In this case the subsidiary would be wholly regulated
by the FSA.
Which types of company within the financial services
sector are regulated/approved by FSA?
Financial service firms, exchanges, and markets will require FSA
authorisation in order to do business. For more information please
visit www.fsa.gov.uk.
Can the City of London assist with the FSA
registration?
The FSA is completely independent of government therefore the
City of London cannot influence the registration process. However,
we are very happy to put businesses in contact with officers at the
FSA or professional advisors to assist with the process if
required.
Property
How do I find out about property in the City of
London?
The City of London has a City Property Advisory Team (CPAT)
which can provide property advice, information on property
available in the City, approximate costs and so on.
More information about CPAT.
How do I register to pay business rates in the City of
London?
For all you need to know about registering and paying business
rates in the City please visit our
business rates web pages.
Tax regulation
Can you explain the UK tax system?
Tax in the UK is managed by Her Majesty’s Revenues &
Customs. The following information relates to financial year
2008-09. For further information on these topics please visit
www.hmrc.gov.uk. It is
strongly recommended that you seek professional advice to help you
establish your business in the most tax-efficient manner.
Corporate tax: The standard rate of corporate
tax for UK businesses is 28%, however differing rates may apply
depending on the size of your business. You will be required to
file an annual tax return for your company and pay tax
accordingly.
Income tax: Employees are taxed on an
incremental basis depending on their taxable income, that is income
after deduction of Personal Allowances, currently £6,035 in 2008/09
for individuals under the age of 65 years.
| 2008-09 |
£ per year |
| Basic rate: 20%* |
£0-£34,800 |
| Higher rate: 40%* |
Over £34,800 |
*There will be a new 10% starting rate for savings income only,
with a limit of £2,320. If an individual’s taxable non-savings
income is above this limit then the 10% savings rate will not be
applicable. There are no changes to the 10% dividend ordinary rate
or the 32.5% dividend upper rate.
Income tax is normally deducted automatically by employers when
your salary is paid and is tax is paid directly to Inland
Revenue.
National insurance: Both employers and
employees in the UK are subject to national insurance (i.e. social
security) payments which are calculated as a percentage of the
employee’s gross pay. Employees pay 11% on salaries between £5,435
and £40,040 (not contracted out rates) and then a further 1% on
income above that limit. Employers pay a standard 12.8% on salaries
above £5,435.
Value-Added Tax (VAT): Firms with sales above
£67,000 per year must register for VAT. The standard rate of VAT is
17.5%, however your company rate will depend on the nature of the
goods and services you supply. You are recommended to seek
professional advice, and we can provide details of companies that
will be able to offer this advice.
Capital Gains Tax: Capital Gains Tax is payable
by individuals on chargeable gains in excess of £9,600 at the rate
of 18%, although entrepreneurs' relief applies which reduces the
tax payable to an effective rate of 10%.
Financial
assistance
Are there specific grants or loans for inward
investors?
The City of London is a thriving economic region with a focus on
an industry that is currently experiencing rapid growth therefore
the area is not eligible for any grants. However, specific research
grants may apply:
R & D tax credits: Research and Development
(R&D) tax credits are a company tax relief which can either
reduce a company’s tax bill or, for some small or medium sized
companies (SMEs), provide a cash sum. The R&D tax credit works
by allowing companies to deduct up to 150% of qualifying
expenditure on R&D activities when calculating their profit for
tax purposes. Companies which are SMEs can, in certain
circumstances, surrender this tax relief to claim payable tax
credits in cash from the HM Revenue & Customs. The April 2006
Budget gave larger companies the opportunity to qualify for R&D
tax credits, with an extension of the employee upper limit from 250
to 500, providing a significant aid to innovation in larger
companies.
R & D grants: Grant for Research and
Development is a Department of Trade & Industry (DTI) scheme
which aims to encourage small businesses to carry out research and
development that leads to technologically innovative products and
processes. You are eligible to apply for a grant if you are
planning to start up a new business in England or if you are
already operating a small or medium sized business in England. If
your business is part of a group of companies you will need to
include the figures on turnover and employment for the group as a
whole.