1. Aberdeen - Norway Gateway 14 June 2016 Managing Overseas Businesses Remotely Steve Mitchell – Accounting Services Director

2. 2 Topics covered Legal Audit Insurance Pensions/ Corporate Benefits Payroll Finance Taxation Do you need to set up a company to carry on business in Aberdeen or Norway? Common issues when setting up an overseas company in the UK or Norway Case study – remotely managing a UK based business from Norway

3. 3 Setting up business in UK or Norway Legal Audit Insurance Employment Pensions/ Corporate Benefits Payroll VAT/ Customs Finance Taxation Common issues Legal Finance Staff Pensions & benefits Payroll – UK & Norway Insurance VAT/ Customs Taxation Audit

4. 4 Setting up business in UK or Norway Legal needs Legal advisors Company formation, appointment of Directors, issue of shares Commercial contracts – client and subcontractor agreements TUPE considerations if acquiring existing business in UK Company secretarial, Annual Returns Banking agreements

5. UK – 20% (19% from 1 April 2017; 17% from 1 April 2020) Norway – 25% Corporate tax rates Company v PE in overseas country? Effect of double tax relief for PE Company v PE in overseas country? Effect of double tax relief for PE Norwegian company with UK subsidiary = 20% tax in UK Norwegian company with UK PE = 20% tax in UK + 5% tax in Norway UK company with Norwegian subsidiary = 25% tax in Norway UK company with Norwegian PE = 25% tax in Norway Subsidiary = easier to stay compliant with overseas tax authorities Subsidiary = ringfenced commercial risk Do you need a company to carry on business in Aberdeen or Norway? How long are you planning on being overseas? Level of profits generated if there to do a one-off project? Deemed permanent establishment (“PE”) if offshore activities > 30 days in any 12 month period = subject to tax in that country Influencing factors

6. 6 Setting up business in UK or Norway Finance needs In-country bank account Bookkeeping Payments (payroll, suppliers, tax) VAT Returns Management accounts Filing of year end financial statements Audit?Taxation

7. 7 Setting up business in UK or Norway Employment related needs Employment legislation advice Contracts of employment for staff Taxation of inbound/outbound employees Corporate benefits Pensions Corporate benefits reporting Payroll calculations and wage tax filings

8. 8 Setting up business in UK or Norway Insurance needs Employers’ liability insurance General insurancesKey man/critical illness

9. 9 Purchase orders raised in Aberdeen Sales invoices raised in Norway Paperless purchase invoices sent by suppliers for processing Online employee expense claims Invoices & expense claim approval in Norway Purchase ledger and all other payments UK payroll/ shadow payroll for Norwegian residents Monthly management reporting Case Study – managing a UK business remotely from Norway “PRIME” Cloud Finance Solutions P = Paperless R = Real time I = Information M = Managed E = Efficiently REMOTELY ANYWHERE IN THE WORLD

10. 10 We helped them understand their reporting obligations in the UK and all HMRC registrations We implemented cloud based accounting software to allow them to manage the business from Norway We worked with group Finance to develop approval processes using cloud based accounting software We took care of all payroll for UK and Norwegian staff Norwegian group looking to establish a UK presence in the oil and gas market UK resident and Norwegian resident operations staff located in Aberdeen Group finance staff located in Norway Diverse accounting system in Norway with no integration Case Study – managing a UK business remotely from Norway

11. 11 In the absence of our own finance team in the UK, AAB have been pivotal in ensuring that we can concentrate on growing our business by taking care of all our bookkeeping, VAT Returns and payroll. Their Integrated Employment Solutions team gives us piece of mind that all our employee reporting requirements, both for our UK and Norwegian staff local, are taken care of. AAB prepare management accounts that allow us to consolidate our results easily into group. Their cloud based solutions allow us to maintain visibility over our accounts and payroll. We can access our accounts from anywhere and this allows us to log in and approve supplier invoices and employee expenses from Norway. AAB also prepare our year-end financial statements and deal with all our corporate tax reporting obligations. We chose AAB as they are flexible and have the expertise to look after us as our business expands.” Lukas Andersen David Wellbore Testimonial

12. 12 Local, national, global AAB is a member of HCWA, an association of independent accountancy practices throughout the UK. HCWA is a business alliance member of Crowe Horwath International (CHI) which is ranked among the top 10 global accounting networks. HCWA is represented in 30 locations throughout the UK. CHI operates in more than 100 countries around the world from 583 cities, with 640 offices and 28,000 professionals. AAB is also the only Scottish member of the International Accounting Group (“TIAG”) which is an international alliance of high quality accounting firms. TIAG has established a global presence and now has a membership of more than 100 firms in over 65 countries. AAB is Aberdeen based and work with UK firms operating across the world, plus foreign companies keen to move into United Kingdom. AAB is the largest firm by staff numbers based in Aberdeen.

13. 13 AAB – New flagship headquarters at Prime 4 Business Park

14. 14 Contact Steve Mitchell – Accounting Services Director Anderson Anderson & Brown LLP Kingshill View Prime Four Business Park Kingswells ABERDEEN AB15 8PU Tel:+44(0)1224 625111 Direct dial:+44(0)1224 049462 Email:steve.mitchell@aab.uk