Inward investment is the injection of capital or assets into a country from outside, for business purposes. Conversely, outward investment is investment made from inside one country to another.
The two terms thus refer to opposite sides of the same investment.
Dealing first 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 business 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. If not, the local agents might be required.
- 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.
Outward investment raises the same issues as inward investment, but every country into which investment is planned will have its own particular requirements. The use of local advisors is generally essential.
Healys has extensive experience and expertise in international inward and outward investment. Our special expertise include the areas of business immigration, employment law, commercial and residential property and corporate and commercial considerations. To help in both inward and outward investment, we have built up a very good relationship with lawyers, accountants, tax advisers, commercial and residential real estate agents and relocation agents around the world. We take a realistic and commercial approach to a client's needs, always ensuring that we understand the client's business and the reason for the proposed inward or outward investment.