How to Invest in Glasgow (Part 3)
Oct 05, 2010
How to Invest in Glasgow (Part 3)
How long should it take to start a new business in Glasgow?
It takes at least 13 days to set up a business in the UK, but this is still a relatively short period of time compared with the European average of 32 days. Many companies use the UK as the gateway to Europe.
How much will it cost to establish a company and open an office?
The following assumes the opening of a small city centre office with a Japanese manager, a local office manager and a local secretary.
1) Opening an Office
Deposit – Two Month’s Rent – 2,500 Great British Pounds (GBP)
Average Annual Rent – 30 GBP per Square Foot – Small Office 500 Square Feet – 15,000 GBP per Annum
Purchasing Basic Office Furnishings and Equipment – 4,000 GBP
Office Monthly Overheads:
Annual Business Rates – 10 GBP per Square Foot
Annual Service Charge – 5 GBP per Square Foot
Total Overheads – 7,500 GBP per Annum
2) Apartment
Deposit – 2 month’s rent – 1200 GBP
Average Monthly Rent – 600 GBP per month
Purchasing Basic Furnishings – 2000 GBP
Monthly Utilities, Council Tax – 100 GBP per month – 1,200 GBP per Annum
3) Obtaining Visas
Application Fee – 230 GBP
Professional Fees – 750 GBP+
4) Employing Local Staff
i) Manager
Recruiting Agency Fee – 8,000 GBP
Monthly Salary – 40,000 GBP per Annum
ii) Secretary
Recruiting Agency Fee – 4,000 GBP
Monthly Salary – 20,000 GBP per Annum
5) Registering a Company
Registration Fee Online – 15 GBP
Approximate Total Cost for the First Year (not including the Japanese manager’s salary) 114,000 GBP+
The final cost will vary considerably depending on the size of the office and the nature of the business.
What other procedures are required when you start a new business in Glasgow?
There will be various government departments to contact when setting up the business. In the UK, most businesses must register for Value Added Tax (VAT) which is similar to Japanese consumption tax. It is also necessary to contact HM Revenue and Customs in relation to income and corporation tax and also National Insurance Contributions, which companies and employees must pay to be entitled to pensions and other benefits. Business rates are a local tax paid to the local authority.
If you need any further information about investing or setting up a business in Glasgow or any other part of the UK, please contact us.
Please note that the information contained in Part 1 – Part 3 of this Article series is subject to change at any time and up-to-date legal advice should always be sought from a legal adviser.
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