Inward investment means the injection of capital or assets into a country from outside for business purposes.
Conversely, outward investment means such investment made from inside one country to another.
Dealing with inward investment, when any person or businesses wishes to invest in the UK there are numerous issues that must be addressed:
- Is the investment into the UK to be made way of acquiring an existing UK business, or via an entirely new start-up in the UK?
- Will the investor be independent, or form a joint venture or partnership with someone already in or also planning to enter the UK?
- What kind of corporate structure is to be used in the UK? This might be by registering a UK branch of the investing foreign company or by incorporating a UK subsidiary. One of these routes is necessary if there is to be an established place of business within the UK. However, if there is no intention to establish a place of business within the UK, then a local agent or distributor might be used.
- Are there to be permanent staff in the UK? If so, these must either be recruited locally, or bought in from abroad, in which case any relevant permissions to work in the UK must be obtained.
- Is the investment to be for a finite or indefinite period? This will have implications for any exit strategy.
- Will premises be required in the UK?
- Will there be physical movement of assets or people into the UK? Specialist relocation services may be required.
Steen Rosenfalck - Partner