MIDAS is the inward investment promotion agency for Greater Manchester and provides an extensive package of free advice and assistance for potential investors and overseas companies looking to establish a base in Greater Manchester, they have helped hundreds of businesses successfully relocate to or expand in the region.
Client Overview:
A burgeoning Turkish multinational company sought to expand its global footprint by establishing a subsidiary in the UK, aiming to tap into new markets and opportunities. The subsidiary, a start-up in the UK, faced the challenge of navigating UK regulations, financial compliance, establishing a robust operational framework and they sought comprehensive accounting and tax services to streamline their financial operations.
Client Challenge:
This newly formed UK subsidiary encountered numerous hurdles typical for new entrants in a foreign market:
- Understanding and adhering to UK company formation regulations and legal requirements.
- Establishing financial structures and systems compliant with UK accounting standards.
- Bridging the gap between the parent company’s operations and local UK business practices.
Our Approach:
Our accountancy firm, equipped with expertise in international business and start-up support, devised a comprehensive strategy tailored to address the subsidiary’s unique needs:
- Company Formation and Legal Compliance:
We guided the client through the intricacies of UK company formation, ensuring adherence to legal requirements and registration processes.We worked with their UK lawyers and provided counsel on corporate governance structures and compliance frameworks necessary for smooth operations within the UK. - Financial Set-Up and Reporting:
We implemented accounting systems and processes in line with UK GAAP, ensuring accurate financial reporting and compliance.We advised in the setting up of a UK bank account, managing cash flow, and establishing financial controls suitable for the subsidiary’s operations.We advised on VAT registration, PAYE registration and pension auto enrolment and are provided a full payroll bureau service to the company. - Cross-Border Operational Alignment:
We facilitated communication and coordination between the UK start-up and its Turkish parent company, establishing protocols for seamless integration and reporting.We advised on financial best practices tailored to cross-border business operations including an intercompany debt to equity swap, bolstering the UK subsidiary’s balance sheet by converting amounts due to the parent company into shares.
- Advisory and Strategic Planning:
We provided ongoing advisory services, offering insights into tax optimisation, cost-saving measures, and strategic financial planning aligned with the subsidiary’s growth objectives.
Results:
Our dedicated support enabled the UK start-up subsidiary to navigate the complexities of entering a new market:
- In conjunction with their UK lawyers, we successfully advised and registered the company, in compliance with UK regulations, ensuring a strong legal foundation.
- We implemented robust financial systems aligned with UK standards, fostering transparent and accurate financial reporting.
- We facilitated efficient communication and operational integration between the subsidiary and the Turkish parent company, fostering synergy and collaboration.
- We empowered the start-up with financial insights and strategic guidance, enabling informed decision-making for sustained growth and market expansion.
Conclusion:
Through our tailored guidance and expertise in international business and financial services, we empowered the UK start-up subsidiary of the Turkish parent company to establish a strong foothold in the UK market. Our ongoing partnership continues to evolve, providing continuous support and adaptive solutions to drive the subsidiary’s success in a competitive business landscape.
