Insights 17/12/2021
With only 2 weeks to go before Christmas, Magic Workshop HQ and Santa are working around the clock to set up their first UK branch. The UK branch will manufacture toys for children in the UK.
When setting up a UK business, there are several things Santa needs to consider and discuss with the management board at HQ, such as:
- Whether they want to set up a private limited company or a partnership
- Where in the UK should the company be located and finding an appropriate premises to manufacture toys
- HR policies and employment contracts for UK employees which comply with UK laws
- What type of insurance policies are required in order to run a UK company
- How to register with HMRC and comply with UK tax laws
- A strategy to recruit and hire skilled workers to manufacture toys
Luckily, Santa has a long list of reputable lawyers, property agents, accountants and insurance agents ready to help him and Magic Workshop Inc. With the help of his trusted lawyers and agents, Santa struck a major deal with a famous UK toy store. As part of the deal, Santa can use their premises to manufacture and sell toys. Overnight, Magical Toys Limited was incorporated.
One of Santa's biggest worries is finding skilled workers in the UK to manufacture toys. He is also worried about the possibility of losing his current staff to other competitors like Easter Bunny Eggs Limited ('EBE Limited').
Santa considers that by offering the opportunity for employees to transfer to different branches around the world and to emphasise the Company's ESG policy that only sustainable materials are used to make toys and zero wastage, the Company will be attractive to potential new recruits. To ensure the UK branch remains competitive in terms of attracting skilled workers and retaining the specialised skills, the business needs to apply for a sponsor licence from the Home Office.
The Home Office requires evidence that the UK business (Magic Toys Limited) is a genuine, lawfully operating business and it is capable of monitoring foreign workers. The Home Office needs to be assured that the chosen key personnel at Magic Toys Limited who will be managing the licence, are honest and dependable. According to Santa's plan, Magic Toys Limited needs to apply for a Sponsor licence to hire skilled workers and intra-company skilled workers (which will allow senior employees based overseas to work in the UK branch).
Usually, the Home Office takes up to 8 weeks to decide a Sponsor licence application. The caseworker immediately saw Santa's name and granted the licence to Magic Toys Limited the next day. Santa and his HR elves start to put the wheels in motion for the next major step to their business plan: Recruitment.
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