a company which is a Limited company in the UK has been trading in Europe . This subsidiary has been formerly detached itself from the UK Ltd Company since 1 Jan 2010. Since then the company has continued trading, initially the company was going to retain its status as a UK registerd Limited company, but under a different name as it had seperated from the original trading company But now has decided it will trade as a legal entity in the country it is trading.
So my question to anyone who may know is
1. A tax return for year ended 2010 needs to be completd, will this be done in the UK or abroad. In the country it is trading, the company has been paying VAT tax and wages tax according to the rules of the country.
2. As it is converting to a Legal entity during the middle of the company tax year, the first six months trading also needs to be audited. But that would follow after knowing the answer to question one above i assume.
3. As the company is becoming a legal entity of that country half way through a trading year, should the books of the company be closed.
What happens to the systems, should the books start from zero?
I suppose my question is that does there need to be a clear divide.
The accountants should advise about the laws of the new country, but i would like to know from a UK perspective what needs to be done.
Apologies if i have gone on for a bit, not had much exposure to this type of change in a company.
Would love to hear from anyone who knows better than me!
