Starting a Company Abroad: A Question Guide for the US and the UK

Before seeking an answer to the US vs. UK question, a simpler question needs to be answered: what exactly will a company abroad be used for? Which market do you want to sell to, how will you receive payments, and where will the products go from and to? Comparing the two countries before clarifying these three answers often means looking for answers to the wrong questions.

This article does not make a decision for anyone and does not state which country is more advantageous. Country-specific rules, tax rates, document lists, and costs are not included in the article. These can change and vary according to your situation. The purpose of the article is to ensure you arrive prepared for incorporation, tax, and banking meetings and can ask the same questions for both countries.

First, write down what you expect from the company

For most sellers considering establishing a company abroad, three separate needs are tangled up in their minds.

• Sales: Which country's customers will you sell to? Will you sell through a marketplace or from your own website?

• Payment: Into which account and in which currency will you receive sales revenue? From where will you pay supplier and advertising expenses?

• Product movement: Will products be dispatched from Turkey for each individual order, or will some be stocked in advance in the target country?

These answers do not prove the benefit of deciding to form a company, but they indicate which questions you should prioritize. For example, someone selling only a few products for trial purposes will not ask the same questions as someone planning to hold stock in the target country. Write your answers on a single page. Go to every meeting with a consultant, accountant, and bank with this page.

Questions to ask when choosing a company type

Both countries have multiple types of companies. You cannot learn which one suits you from this article, because it depends both on your plan and on that country's rules. What you can do is go to the meeting with the following questions:

• Which company types can be considered for my plan, and what is the fundamental difference between them?

• If I have partners or might have them in the future, is this type suitable for that?

• What is regularly expected of me after incorporation? Which records will be kept, which filings will be made, and who will handle them?

• Who is liable for the company's debts and obligations, and to what extent?

Also watch out for concepts that sound familiar from Turkey. For instance, "adi şirket" (ordinary partnership) is a known concept in Turkish law. However, the name of a structure abroad or its similarity on paper does not mean it will operate the same way as in Turkey. Do not equate structures in the US and the UK with those in Turkey. Leave the matching to a consultant familiar with that country's law.

Tax registration: what to ask, and when?

The most common mistake regarding taxes is trying to compare countries by asking "which one has lower taxes." There is no general answer to this question. The correct phrasing of the question is: which registrations are required for the activity I plan, which declarations/returns will arise, and when should each of these be addressed?

Questions you can take to the meeting:

1. Which tax registrations might be required after the company is established for my planned sales model (marketplace, own site, overseas inventory)?

2. Are these registrations carried out when the company is established, before the first sale, or after a certain point?

3. Which declarations will be submitted regularly, and who will prepare them?

4. How does owning a company abroad affect my tax and reporting obligations in Turkey?

The last question is easily overlooked. Establishing a company abroad may not eliminate obligations on the Turkey side. Discussing this jointly with both your overseas and Turkish accountants will minimize surprises that may arise later.

Consider the bank account along with your payment plan

Forming the company does not guarantee that a bank account will be opened. An account is a separate application, and every bank has its own conditions. For this reason, questions related to the bank must also be put on the table during the formation stage.

First, write down what the account will be used for: will you receive payments from sales, or will you only pay expenses? Which currencies will you work with? Then ask the bank or account provider the following:

• Is the account I am considering sufficient to receive payments from sales and pay operating expenses?

• What conditions are required for the application? What information and documents about the company and its owner are requested?

• What fees apply to items such as account opening, monthly maintenance, and money transfers?

• What will my plan be for receiving payments until the application is finalized?

I am not providing figures for the document list and approval duration in this article, as these vary from bank to bank and can change over time. Accurate information comes directly from the bank itself.

Logistics: the company's country and the product's route are separate questions

Establishing a company in the US implies that products will go to the US, but they do not have to. The country where the company is established and the origin and destination points of the shipment are two separate decisions. For example, your company can be in one country, your customers in another country, and products can depart from Turkey. Writing these down separately will make your work easier in both tax and logistics meetings.

First, ask yourself: where will the shipment depart from and arrive at, and is this route the same as the country where the company was established? Then, specify the characteristics of the cargo. The items that determine pricing for US shipments are: cargo type, weight, quantity, packaging type, and the selected carrier. For low-quantity shipments, partial load (LTL - shipping by sharing your allocated space with other cargo) can be more suitable than a full load. As quantity increases, a full load can become more economical per unit. Therefore, it makes sense to request quotes based not only on your current order volume, but also on the amount you plan to ship in the upcoming period.

Do not read these details as a pricing rule specific to the UK. Keeping your cargo details ready is also useful for UK shipments, but you need to obtain quotes separately for that route.

With Navlungo, you can enter cargo details and weight to view shipping quotes, compare prices, make online payments, and track your shipment. Details for the US route are on the US shipping page. For the UK route, you can check the UK shipping page. Since customs duty is also part of the total cost for shipments to the US, the US customs duty calculation page can also be helpful when evaluating quotes.

Prepare your own decision memo

Copy the table below into a document. For each row, in the US and UK columns, write down the answer you received or a note saying "to be clarified with [person]". The unfilled cells will give you your meeting agenda.

| Topic | Ask yourself | Who to clarify with? |

| --- | --- | --- |

| Company type | Which types fit my plan, and what are my post-incorporation responsibilities? | A consultant who knows the country's law |

| Tax registration | Which registrations and filings are required for my activity, and when? | Overseas and Turkish accountants |

| Bank account | Does it meet my needs for receiving sales payments and paying expenses, and what are the terms and fees? | Bank or account provider |

| Shipment plan | What will be the origin and destination points, cargo type, weight, quantity, package type, and carrier? | Logistics provider quotes |

When you fill in the same rows for both countries, it becomes easy to see which answers are missing. Missing rows also tell you which meeting you should conduct first. This table does not produce a country ranking. Its purpose is to ensure you have comparable answers in hand when making the decision.