uk rep office

[kimlee]

my friend has a Hong Kong registered ltd. co. and as I was unemployed for several months, he said probably I can set up a show room in UK for him so that I can have some income and his customers can come to the show room to see the samples. I do not know whether I have to register a UK co. and how to pay for the NI and income tax etc. Is any body can give me some hints? Thanks.

[buildersmate]

Well, from the outset you need to work out whether he is employing you, or whether he expects you to set up an 'organisation' which would have a contract with him to pay you via invoices against work done.
I use the word 'organisation' because you could either do it as a self-employed person, or you could set-up a limited libility company with you as a director.
Here's a fundamental thought for you - is he expecting you to fund the setting up of the office yourself?

[kimlee]

He is not employment me. He plans to T/T some money on monthly basis to my a/c as for the running cost of the show room+a small office including my pay. If the business is good, he intends to get 1 more freelance sales to handle the customers' orders in UK. I am totally get lost as I think he can't just T/T the money to my a/c. Am I right? Also if I sign the Tenancy Agreement for the show room+office, then I myself will be responsible for the rental. I doubt the landlord will sign a contract with a personal instead of a proper company. Please help.

[BenDToy]

If he wants you to invest your own money then I think you need to get a formal agreement of some kind, as an agent or distributor, with a term similar to your rental contract cancellation period. He could pay you a retainer, or agency fee. You could then be self employed, and you certainly don't need to register a company, especially if you will be the only worker (sole proprietor). As an individual, a landlord would be only too happy to deal with you, because you would be personally liable for the rent, rather than a limited company which would have no credit rating, and could go bump on him. NI and income tax is not so complicated, but you do need to provide for it when you are self employed. You really need to get some proper professional advice, either from a business advisor at a bank, or maybe the CAB. Your local CBI or Small Business Federation may be able to provide some help. But please don't dive in until you get the advice you need. The best of luck with your venture. Post again if you need more specific help.
By the way, I think you may find it difficult to persuade the tax people that you are self employed. in my opinion they will consider you as an employee - note that you say he will send you your "pay". I think it would be worth contacting HMRC. They are very helpful about stuff like this and they can advise you how to organise yourself.

[kimlee]

Thank you buildersmate and BenDToy. Both of your advice are very valuable to me. I will go to see the CAB within next week. Thanks again.