Australia and the UK enjoy a firm diplomatic and economic relationship. Along with this, the two regions have much in common due to a shared history. 

It’s not unusual to see Australian and UK residents taking advantage of this relationship by travelling, studying, working and living abroad. 

The same applies for businesses. Australian businesses can look to expand their prospects into the UK. 

Australia and the UK have similarities with some of their governing and economic systems, so the adjustment isn’t always difficult. 

However, before Australians take the leap over to the UK, there are some regulations and legal aspects that should be considered first to make sure you’re best prepared to start doing business in the UK. 

In this article, we’ll discuss: 

  • Ways to expand your business 
  • Expanding your business internationally 
  • Laws impacting businesses in the UK
  • Legal agreements and intellectual property considerations 
  • Taxes
  • Employer obligations 
  • Setting up a subsidiary 

Read on to learn more!

Ways To Expand Your Business

When you’re expanding a business, you’re essentially looking to grow the market you currently serve to include a bigger range of customers. This can be done in multiple ways, such as:

  • Franchising
  • Setting up a subsidiary
  • Selling on eCommerce marketplaces such as Etsy
  • Setting up a website and selling online 
  • Increasing the services or products you provide
  • Hiring more staff to aid with growing numbers 

How Do I Expand My Business Internationally?

Expanding a business internationally can include some or all of the points listed above. The main factors require research and preparation. 

Firstly, it’s worth understanding whether there is a demand for your products or services overseas. In addition to this, get to know any social or cultural differences that may impact how your business is received. 

You should also address factors such as marketing to a new crowd, legislation impacting how business will be conducted, expenses and regulations regarding the transport of goods. 

Doing Business In The UK

For Australians, the UK is a great market to pursue international business success in. 

The UK has a stable economic and social climate. Australia and the UK enjoy a free trade agreement that was signed in late 2021, adding further encouragement to the economic relations between the two regions. 

However, the positive relationship alone isn’t enough to guarantee success for Australian businesses in the UK. It’s important to understand how the UK’s regulations, systems and customs will impact your business first. 

Keep reading to find out more. 

What Laws Affect Businesses In The UK?

Different pieces of legislation impact businesses in the UK. After all, practices that are legal in Australia may not be in the UK, so it’s important everything you’re doing is compliant with the UK’s regulations

Primarily, you’ll likely need to adhere to legislation such as the: 

International Contract Enforcement

Doing business overseas means you will be needing internationally enforceable contracts

Contracts that are considered to be internationally enforceable contain clauses that determine a contracts validity in multiple jurisdictions. 

Therefore, if a dispute occurs regarding a particular  contract and a judgement is passed in the UK, the decision can still be legally enforceable in Australia.  

An internationally enforceable contract’s clauses can be specified to suit the needs of your business. 

If no such clause exists, the parties may need to discuss things like the governing law and jurisdiction during the drafting stages of the agreement. If you’re unsure, chat to our contract lawyers

What Legals Should I Consider

The legal aspects of every business are arguably the most important considerations to make as it manages potential risks during a business venture. 

However, legals can be overwhelming or complex for some businesses, especially if you’re doing business in another country. 

We’ve summarised some of the main legal issues to consider when starting or expanding a business to the UK. 

Supply Agreement

If you’re running a business, chances are you’ve got a supplier. 

A supplier can be anyone who provides goods that are needed for your business. For example, a restaurant may have a supplier of fresh produce. A suit tailor can have a supply arrangement with the person who provides their fabrics. 

A Supply Agreement is the contract between the supplier and the business utilising their services. If you’re expanding to the UK or opening up a new business there, then you will need new Supply Agreements in place. 

The Supply Agreement will detail crucial matters such as pay, a description of the items, delivery, warranties, liabilities and dispute resolutions – all things that are extremely important to get in writing! 

Intellectual Property 

When expanding your business from Australia to the UK, you still want to keep your intellectual property protected. A business’ intellectual property can often be integral to their advertising and market niche, so securing this is really important. 

Intellectual property is anything that is not tangible but created originally from the mind. 

Generally, intellectual property tends to take the form of patents, copyrighted materials and trade marks. 

Register An International Trade Mark

In order to register an international trade mark, you will first need to have a trade mark that is registered in Australia (if you haven’t done this already, then applications can be filed simultaneously). 

There are two ways you can register a trade mark outside of Australia:  

  1. A local application can be filed for a trade mark in the country you wish to get it registered in 
  2. Submitting an application with the Madrid System, the official international trade mark system  

Registering a trade mark locally in the UK will need to be done through the Intellectual Property Office

The application process is similar to the Australian one, where it requires submitting an application, and if the application is successful, that trademark is published and will be in an opposition period for two months. If everything goes well, you will have a registered trade mark at the end of this process. 

The Madrid System, on the other hand, allows a single application (and one time fee) to file an application for an international trademark. There are currently 128 countries participating in the Madrid system, so if you plan to continue expanding internationally, it might be worth considering the convenience of the Madrid System. 

General Data Protection Regulation

Like most other businesses, your business in the UK will need to keep up with its privacy obligations. In Australia, the legislation that governs privacy obligations for businesses and government entities is the Privacy Act 1988. 

In the UK, the law you need to look at is the General Data Protection Regulation (GDPR).

The GDPR essentially sets out a number of guidelines and rules for how businesses should handle personal data and information. 

If your business collects personal information, you’ll need to have a Privacy Policy that outlines how you handle this kind of information and discloses this process to users and other affected individuals. 

For example, it should outline that customers have a right to have their data erased, to know which third parties their data is being disclosed to and where you’re storing the information. 

Cookie Policy

Collecting information to assist in your business activities is a common trend. However, it should be balanced with your customers’ right to privacy and transparency. 

In addition to having a Privacy Policy in place, your business should also have a suitable Cookie Policy. 

A Cookie Policy informs users that you will be keeping a record of their online activity to understand user preferences. Since you are accessing and monitoring their online activity, you need to be transparent about how you do this and why. 

So, the best way to do this is through a Cookie Policy on your website. If you’re not too sure how you might go about crafting the right policy, our Data & Privacy lawyers can help.  

What Taxes Apply To My Business In The UK?

The kind of taxes that will be relevant to your business will depend entirely on your business operations, profits and structure. 

Value-Added Tax (VAT), import duty and any other associated customs fees will likely need to be paid on items that are shipped internationally. 

If you’re going to be registered as a company, then you might have to pay corporation tax. 

Prior to starting up business operations in the UK, it’s a good idea to familiarise yourself with all the taxes that will be relevant to your business so you aren’t caught with unexpected expenses. 

Employer Obligations In The UK

Expanding or starting a business in the UK means you will likely need to hire staff at some point to help with running business operations. Whether you’re hiring people internationally as an employee or externally as contractors, as an employer, you still have particular legal obligations towards them. 

For internal employees, it’s important to ensure they are being paid according to national standards as well as receiving benefits, leave and entitlements. For example, your employees need to be earning (at the least) the national minimum wage

It’s best to familiarise yourself with UK employment regulations in order to avoid making any mistakes here. 

Similar to Australia, the UK has their workplace health and safety requirements. The Health and Safety Executive is the main regulatory body for workplace safety. 

If you’d like to learn more, check out our Overview On Workplace Health and Safety.  

Can I Set Up A Subsidiary?

Yes, you can set up a subsidiary of your company in the UK. 

Establishing a subsidiary means rather than a branch, the subsidiary will be a legal entity on its own. In most cases, the parent company then controls the majority of the shares of the company, allowing them ownership. 

Most people set up a subsidiary so that the company can enter into dealings and contracts with parties, and the parent or holding company can be safe from liability. You can also protect your business’ assets under this structure. 

Subsidiaries are an option to expand your company internationally while ensuring the liability doesn’t fall entirely on you. 

In order to set up a subsidiary, you will need to establish a UK presence such as a bank account, address and at least one director that resides locally. 

Registration is done through Companies House. However, it’s recommended to get the advice of a legal professional to make sure everything goes smoothly. Contact us today to see how we can help. 

What Else Should I Know?

Another thing to consider is setting up a bank account in the UK. Many banks in the UK require businesses to establish a presence in the UK prior to allowing them to open an account with their establishment. 

However, some applications can be assessed head on – it’s good to keep these things in mind so you can be ready to navigate around them. 

Key Takeaways

There’s a lot to consider before you decide to take on the UK market as a business owner. It’s important not to get overwhelmed and talk to a legal professional so they can assist with the process and make things as easy as possible. 

To summarise what we’ve covered: 

  • There are different ways you can expand your business internationally, whether it be moving online or setting up a subsidiary 
  • The UK is often an attractive place of Australian businesses expanding internationally 
  • Internationally enforceable contracts can be useful in running a business that extends beyond borders 
  • Keeping your business legal protected is key – be proactive in securing trademarks and having strong service agreements 
  • As an employer, you will need to adhere to UK employment standards 
  • Plan for how your business will be impacted by UK taxes 

If you would like a consultation on doing business in the UK, you can reach us at 1800 730 617 or [email protected] for a free, no-obligations chat.

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