To make sure we provided as detailed an answer as possible, we decided to use an unorthodox approach. We will start by explaining how a representative office is seen by potential migrants. Then we will move on to showing which company British government would consider as a full-blown branch and which organisations cannot be counted as such. We will finish by advising you on how to get a representative visa to the UK as smoothly as possible.
What a representative office is for a migrant
It is unfortunate that many of foreign businessmen would look at opening a branch of their company in the United Kingdom as a cheaper way to relocate to the country than investing in it.
Reasons behind business ventures in the UK
- There is no £2 million available to invest in British economy or it is available, but a migrant has no desire to buy shares of UK companies;
- Majority of the parent company has long belonged to co-founders;
- Manager’s position in the parent company is not enough anymore;
- Why not try my luck in London?
Moreover, relative to the amount an investor has to invest, costs of setting up a representative office are insignificant; they will literally include costs of registering a company and relocation of a family to the UK, if you have a family. If the business is a success, you will be able to apply for permanent residence in 5 years.
However, before you make any rush decisions, have a look what the UK authorities thinks about all of it.
What a representative office is for British government
The immigration route under which foreign companies can open their branch in Great Britain was created to boost the local economy and UK market growth; individual immigration is secondary.
Requirements for a sole representative
During all five years since entering the United Kingdom (3 years initial visa and 2 years extension) until applying for an indefinite leave to remain, a representative must work only for their company and grow it business. It means selling unique goods and services, paying corporation tax and maintaining necessary licences, insurances, as well as paying national insurance contributions and income tax from their director’s salary.
There are quite a lot of documents to prepare for the representative visa application which could take 3-4 weeks and another 8 weeks for the Home Office to make a decision. You must demonstrate to the immigration authorities that the parent company is serious about setting up a UK branch and has enough money to do it, while the representative themselves must know for sure what their role will be. This is where you might need expert advice and support to ensure you do everything right and on time.
What a representative office can do
A branch of a 100% subsidiary of a foreign company in the UK must be set up with the purpose of doing the same activity and selling the same goods and services as its parent company. It cannot do anything else on the British Isles.
Who cannot be a representative of a foreign company in the UK
Here is a short list of businesses that are not considered sole representatives on a foreign parent company:
1. UK brokers or agents (both individuals and legal entities) getting commission for their work.
2. Distributors receiving percentage from sales in the UK.
3. Distributors reselling parent company’s goods in Great Britain.
4. UK agents looking for clients and partners and passing on this information to the parent company, provided they are not on payroll.
As you can see this immigration opportunity can be viewed differently from the point of view of a migrant themselves and the UK authorities. To realise your plans and get a representative visa, talk to professional lawyers from a reputable company. Then you can rest assured that the whole process goes smoothly and at a minimum cost.
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