How to transfer a Moving Companies London abroad: everything you need to know

The number of entrepreneurs who decide to transfer their company abroad is increasingly growing , but how to do it ? In this article we will explore the reasons and the procedures to follow to transfer the registered office across the border following the regulatory criteria currently in force so as not to run into penalties. We need to clarify the issue and clarify that Moving Companies London abroad is legal, but this must not be done to avoid taxes in London or to avoid a corporate bankruptcy, or worse still, to escape the jurisdiction of the london. Having said that, let's see, first of all, why so many entrepreneurs choose to transfer their company abroad.

Why transfer a company abroad? 

The reasons that generally lie behind an entrepreneur's decision to transfer his company abroad are of three types: 

•    Tax 
•    Administrative 
•    Civil 

In the first case , you choose to change your registered office and transfer it abroad to obtain tax benefits . 

In order to benefit from more favorable tax treatment, many companies transfer their company's registered office abroad . 

However, it must be specified that if the transferred company maintains a connection withLondon, it must continue to pay taxes to the london tax authorities. 

Sometimes we come across unclear situations which see companies which, despite having their headquarters inLondon, make it appear as resident abroad to evade London taxes. 

When this happens we are faced with a phenomenon of outsourcing  which could expose the company to heavy tax penalties and the entrepreneur to serious criminal risks. 

However, it must be specified that the entrepreneur can transfer the company abroad and continue the administration activity fromLondon provided that the effective management office is located in the foreign country . 

The seat of effective management means the place where: 

    Accounting records are kept; 

    key decisions about the management of the enterprise are made. 

Furthermore, the entrepreneur can transfer the business while maintaining at least part or even all of the business inLondon. 

In the second case , of an administrative nature , it is decided to transfer a company abroad to change the regulatory system that regulates the company (less bureaucracy for example). 

In the third case , in which the motivation is of a civil nature , this concerns the need to change jurisdiction. 

Transferring companies abroad: cancellation of debts 

It is often thought that transferring a company abroad is a salvation for escaping the debts accumulated in London. 

Let's immediately clarify that changing the registered office by moving it abroad does not involve the cancellation of debts, according to what is established by law. 

This means that while transferring the headquarters abroad, creditors can still continue to take action against the entrepreneur and/or company to get back what they are owed. 

It is a different story when it comes to the company's bankruptcy action .  

What does it mean? If the company declares bankruptcy, with consequent cancellation from the Register of Companies, and this does not involve a new opening of a branch abroad, then a full-fledged bankruptcy procedure is opened with the consequences of the case, including the cancellation of debts . 

It sometimes happens that you come across companies that declare bankruptcy to reopen a new office abroad. In such cases, if the continuity of production with the previous one is confirmed, then it is considered a transfer and not a bankruptcy deed in all respects which reduces the debts contracted in London. 

The issue of transferring a company abroad is a very complex one. It should be clarified that every entrepreneur is free to establish the headquarters of his company wherever he prefers, but this must be done in a transparent and not subtle way, as, unfortunately, very often happens.  

Transferring companies abroad: what does it involve? 

According to European Union law, the judge delegated to decide on the bankruptcy is the competent court in relation to the place where the "centre of the debtor's main interests" is located . 

What does this entail? 

This entails the legal and civil responsibility of the company to prove to the competent judge that the center of corporate interests has actually changed and is located in a place other than that resulting from the deed of incorporation. 

This could be fake if: 

The transfer of the headquarters abroad took place when the state of insolvency of the company was completely evident; 

It is not possible to demonstrate the actual reasons for which it was decided to transfer the company abroad 

The new registered office abroad corresponds to an address where no office or corporate headquarters is located. when it is discovered that the foreign office is associated with a nominee 

Transferring companies abroad: the procedure 

Therefore, when you decide to transfer a company abroad , before running into the envisaged procedure, make sure that the situations described so far are not in place which could prevent its execution.

Conclusion 

If you want to open or transfer Movers London your company abroad and thus internationalize your business, contact one of our professionals for specific and targeted advice .