Irish business contracting in the UK

Chris1479

Having contracted in Ireland for the last number of years, some lucrative UK contracts have landed in our lap. However, we haven't traded abroad before and we're wondering about legally and financially what pitfalls may need to be avoided. Any advice from anyone that has experienced this before. Actually, any general advice would help too. The contracts are in the electrical trades sector.
Thanks in advance.
Chris.

pedroeibar1

Chris1479 wrote: »

Having contracted in Ireland for the last number of years, some lucrative UK contracts have landed in our lap. However, we haven't traded abroad before and we're wondering about legally and financially what pitfalls may need to be avoided. Any advice from anyone that has experienced this before. Actually, any general advice would help too. The contracts are in the electrical trades sector.
Thanks in advance.
Chris.

The use of the word ‘landed’ scares me. The most common mistake/pitfall of first-time exporters to the UK is that they mistakenly regard it as a market similar to Ireland because the language is the same. It is an entirely different place in which to do business, with its own traditions, customs and glitches. \and there are as many cowboys there as here. What is your strategy for business growth and business expansion? How committed are the owners/shareholders/senior management to expansion overseas? Have you a long-term view on the market? Is it just a ‘filler’ because work is quiet here and you will drop UK when things pick up? Who has day to day DIRECT responsibility for the expansion? You need to manage your currency exposure and it probably would be best to set up a separate bank account for that part of the business. How are you going to finance the projects? Will you have the support of your existing bank(s) to finance overseas contracts? You need to check your insurance policies to ensure that your people/product/work are covered ‘off’ the island of Ireland. Have your checked out the creditworthiness and reputations of the customers who have given you contracts? (Frequently the new boy on the block gets the job because nobody else wants it!) Is the main contractor Irish? Or the main Ec&Mech guy? Are your main Irish competitors operation there? How are they doing things? Have you considered taking on a Brit to run the operation or looked at finding a business partner there. The list is endless really…………

pedroeibar1

pedroeibar1 wrote: »

The use of the word ‘landed’ scares me. The most common mistake/pitfall of first-time exporters to the UK is that they mistakenly regard it as a market similar to Ireland because the language is the same. It is an entirely different place in which to do business, with its own traditions, customs and glitches. \and there are as many cowboys there as here. What is your strategy for business growth and business expansion? How committed are the owners/shareholders/senior management to expansion overseas? Have you a long-term view on the market? Is it just a ‘filler’ because work is quiet here and you will drop UK when things pick up? Who has day to day DIRECT responsibility for the expansion? You need to manage your currency exposure and it probably would be best to set up a separate bank account for that part of the business. How are you going to finance the projects? Will you have the support of your existing bank(s) to finance overseas contracts? You need to check your insurance policies to ensure that your people/product/work are covered ‘off’ the island of Ireland. Have your checked out the creditworthiness and reputations of the customers who have given you contracts? (Frequently the new boy on the block gets the job because nobody else wants it!) Is the main contractor Irish? Or the main Ec&Mech guy? Are your main Irish competitors operation there? How are they doing things? Have you considered taking on a Brit to run the operation or looked at finding a business partner there. The list is endless really…………

That some homework assignment! I'd agree with the above, the 'landed' is indeed worrying. How did this contracts land in your lap?, and what kind of organisations are offering them?
Ive given out contracts as part of real estate development before, and found a lot of say 'skullduggery' in the quote preparation and pricing that gets submitted. The paperwork and fine detail of the job is so important to try and identify who is trying to pull a fast one and who isn't.
Its the other way around for you but its sounds like the most important thing to start with is to establish if these contracts are not a kind of fools gold.

Chris1479

Yes it's a lot of homework. 'Landed' in this sense is a niche venture in Ireland, more common in the UK and has come through a past trusted business channel that was unexpected. You've mentioned some things that we are currently looking into but some that we hadn't thought about. To set up banking in the UK, do we need to have a UK company registration with tax setup etc?
Lots of food for thought and a busy week ahead me thinks.

Duckett

you will need a UK company to set up an account - you could establish it in NI via BoI, AIB or UB - use the one you have a relationship with. Tax is a bigger issue especially if you are hiring staff locally. Talk to some player that are already in the market - people are very generous with their time if approached properly. Also talk to the British Ireland Chamber of Commerce.

WicklowTiger

Duckett wrote: »

you will need a UK company to set up an account - you could establish it in NI via BoI, AIB or UB - use the one you have a relationship with. Tax is a bigger issue especially if you are hiring staff locally. Talk to some player that are already in the market - people are very generous with their time if approached properly. Also talk to the British Ireland Chamber of Commerce.

BOI will open an account for the existing ROI company at a branch in NI. Not sure about the other banks, but I know that our local branch organised it all for us through the BOI in Enniskillen. Only issue is the online banking is a pain, need two separate profiles.

NotaSheep

If you have more than 10 employees I would link in with Enterprise Ireland and in particular look at the Market Access grant.