INVESTMENT AND SETTLEMENT IN THE U.K DENIZ OGUZKANLI PARTNER RONALD FLETCHER BAKER LLP CITY OFFICE WEST END OFFICE ISTANBUL OFFICE WITH MORAL LAW FIRM 326 Old Street 77A Baker Street Rumeli Caddesi London EC1V 9DR London W1U 6RFNo 42, Birlik Apt. Nisantasi/Istanbul

WHY INVEST IN THE UK POLITICAL /ECONOMIC STABILITY LEADING EUROPEAN CENTRE FOR: INVESTMENT PRIVATE BANKING HEDGE FUNDS PRIVATE EQUITY EXCHANGE TRADED DERIVATIVES SOVEREIGN WEALTH FUNDS

WHY INVEST IN THE UK LEADING EXPORTER OF FINANCIAL SERVICES IN THE WORLD FOURTH LARGEST BANKING SECTOR GLOBALLY THE SECOND LARGEST FUND MANAGEMENT INDUSTRY THE SECOND LARGEST LEGAL SERVICES THE THIRD LARGEST INSURANCE SECTOR LEADING BUSINESS LOCATION EASY ACCESS TO CUSTOMERS SUPPLIERS AND PARTNERS

INCENTIVES (SOME EXAMPLES) REGIONAL GROWTH FUND (UP TO A £1M) ENTERPRISE ZONES (REDUCE TAX, FINANCIAL INCENTIVES, BUSINESS SUPPORT) SMART SCOTLAND (UP TO 600K) ADVANCE MANUFACTURING –SUPPLY CHAIN INITIATIVE – WEST MIDLANDS &LIVERPOOL (100K) ACCELERATED BUSINESS GROWTH –LANCASHIRE (150K) FINANCE FOR BUSINESS –NORTH EAST (125K)

BUSINESS TYPES SOLE TRADERS PARTNERSHIP PRIVATE COMPANIES

SOLE TRADERS RUNNING OWN BUSINESS- SELF EMPLOYED CAN EMPLOY PEOPLE USE BUSINESS NAME (SUBJECT TO EXCEPTIONS) PERSONALLY RESPONSIBLE FOR: BUSINESS DEBTS, BILLS FOR BUSINESS, KEEPING RECORDS (SALES AND EXPENSES) SELF- ASSESSMENT, PAY INCOME TAX FROM PROFIT

PARTNERSHIP TWO OR MORE PEOPLE RUNNING A BUSINESS CAN EMPLOY PEOPLE AND USE BUSINESS NAME PARTNERS ARE INDIVIDUAL SELF-EMPLOYED PEOPLE THEY ARE JOINTLY AND SEVERALLY LIABLE FOR BUSINESS DEBTS A WRITTEN PARTNERSHIP AGREEMENT IS RECOMMENDED

LIMITED LIABILITY PARTNERSHIP FORM OF BUSINESS ENTITY WITH LIMITED LIABILITY FOR THE MEMBERS IT HAS THE ORGANISATIONAL FLEXIBILITY OF A PARTNERSHIP AND IS TAXED AS PARTNERSHIP LIABILITY IS LIMITED TO THE PARTNERS INVESTMENT UNLESS INDIVIDUAL GUARANTEES GIVEN TO BANKS ETC

PRIVATE COMPANIES THE COMPANY IS A SEPARATE LEGAL ENTITY ANY PROFIT IT MAKES IS OWNED BY THE COMPANY AFTER PAYING CORPORATION TAX THE PROFIT CAN BE DISTRIBUTED BY WAY OF A DIVIDEND TO THE SHAREHOLDER MEMBERS –SHAREHOLDERS OFFICERS- DIRECTORS/SECRETARIES DIRECTORS CAN BE SHAREHOLDERS

NEED TO REGISTER WITH COMPANIES HOUSE AND NEED: COMPANY NAME, AT LEAST ONE DIRECTOR, AT LEAST ONE SHAREHOLDER (NO MAXIMUM), DETAILS OF COMPANY’S SHARES AND OPERATION (ARTICLES OF ASSOCIATION) REGISTERED ADDRESS

COMPANIES’ OBLIGATIONS PREPARE STATUTORY ACCOUNTS SUBMIT ANNUAL RETURN TO COMPANIES HOUSE SUBMIT TAX RETURN TO HMRC REGISTER FOR VAT (CURRENTLY 20%) IF YOU EXPECT TAKINGS TO BE MORE THAN £79K A YEAR IN ADDITION, A DIRECTOR MUST

DIRECTOR’S RESPONSIBILITIES TRY TO MAKE THE COMPANY A SUCCESS, USING SKILLS, EXPERIENCE AND JUDGEMENT FOLLOW THE COMPANY’S RULES AS PER THE ARTICLES OF ASSOCIATION ACT IN THE BEST INTERESTS OF THE COMPANY DECLARE ANY PERSONAL BENEFIT THROUGH COMPANY’S TRANSACTIONS KEEP COMPANY RECORDS AND REPORT ANY CHANGES TO COMPANIES HOUSE AND HMRC (YOU CAN ASK OTHER PEOPLE SUCH AS ACCOUNTANTS, TO MANAGE SOME OF THE THINGS BUT ULTIMATELY DIRECTORS ARE LEGALLY LIABLE)

TAX CORPORATION TAX ON COMPANY PROFITS (20% FROM APRIL 2015) VALUED ADDED TAX (VAT) SALES TAX- REGISTER IF VALUE OF SALES AND TAXABLE SUPPLIES EXCEEDS £81,000 IN ANY 12 MONTH PERIOD (USUALLY NO VAT ON EXPORTED GOODS FROM THE UK) PAY AS YOU EARN (PAYE) AND NATIONAL INSURANCE CONTRIBUTIONS (NI) PERMANENT ESTABLISHMENT (TAX PAYABLE ON UK PROFITS ONLY) REPRESENTATIVE OFFICE NO CORPORATION TAX –ONLY INCOME TAX FOR UK EARNINGS (INTEREST, RENT ETC)

BRANCH OFFICE – SETTING UP A PERMANENT ESTABLISHMENT MUST REGISTER WITH COMPANIES HOUSE MUST PROVIDE: A CERTIFIED COPY OF ITS CONSTITUTION A COPY OF ITS LATEST FINANCIAL STATEMENT CERTIFIED TRANSLATIONS ARE REQUIRED WITH DETAILS TO COMPANY, INCLUDING NAME, ADDRESS ETC REQUIRED TO SUBMIT ANNUAL FINANCIAL STATEMENT TO THE COMPANIES HOUSE

IMMIGRATION RULES FOR COMPANY REPRESENTATIVES YOU CAN APPLY TO STAY IN THE UK AS A SOLE REPRESENTATIVE OF A COMPANY PROVIDED: YOU ARE RECRUITED AND EMPLOYED OUTSIDE THE UK BY A COMPANY WHOSE HEADQUARTERS AND PRINCIPLE PLACE OF BUSINESS IS OUTSIDE THE UK HAVE EXTENSIVE RELATED INDUSTRY EXPERIENCE AND KNOWLEDGE

CONTINUED: INTEND TO ESTABLISH THE COMPANY’S FIRST COMMERCIAL PRESENCE IN THE UK AS A REGISTERED BRANCH OR SUBSIDIARY HOLD A SENIOR POSITION WITHIN THE COMPANY (BUT NOT A MAJOR SHAREHOLDER) AND HAVE FULL AUTHORITY TO MAKE DECISIONS ON ITS BEHALF OTHER CONDITIONS (ABLE TO SUPPORT SELF AND DEPENDANTS, SUFFICIENT ENGLISH, ACCOMMODATION ETC) INITIAL LEAVE 3 YEARS- CAN BE EXTENDED FOR 2 FURTHER YEARS. CAN APPLY TO SETTLE AFTER 5 YEARS

TIER 1 ENTREPRENEUR APPLICATION 95 POINTS REQUIRED ACCESS TO 200K FUNDS -25POINTS MONEY WILL BE HELD BY A REGULATED FINANCIAL INSTITUTION- 25 POINTS THE MONEY WILL NEED TO BE DISPOSABLE IN THE UK- 25 POINTS SPEAK ENGLISH TO REQUIRED STANDARD- 10 POINTS MEET NECESSARY REQUIREMENTS -10 POINTS

TIER 1 INVESTORS VISA 1M INVESTMENT MONEY TO BE HELD BY REGULATED FINANCIAL INSTITUTION 3 YRS 4 MONTHS – CAN EXTEND IT FOR 2 FURTHER YEARS APPLY TO SETTLE AFTER 2 YRS IF YOU INVEST 10M APPLY TO SETTLE AFTER 3 YRS IF YOU INVEST 5M YOU CAN’T ENGAGE IN COMPANIES MAINLY INVESTING PROPERTY

(ECAA)- ANKARA AGREEM ENT SIGNED IN UK BECAME PART OF IT 1973 IT ALLOWS TURKISH NATIONALS TO APPLY TO STAY IN THE UK AS BUSINESSPERSON CAN APPLY WITH A BUSINESS PLAN /PROJECTION YOU CAN ALSO BUY INTO A BUSINESS BUT MUST BE ACTIVELY INVOLVED IN THE BUSINESS BUSINESS PLAN NEEDED

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