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Is it fair to assume that we all know what an umbrella company is and why people use them? Well – in a word; no. Although umbrella companies are not a new phenomenon and have been around for many years; it is only since the 2007 budget and the subsequent legislation that they have really come to the fore. 

Gone are the days of the composite company; basically a limited company that you would be placed in as a shareholder with perhaps another 20 people. You would then claim minimum wage, and the rest of your take home pay would be in the form of dividends. These ceased in 2003 when the government introduced a tax-free allowance of £10k for small businesses, and single person limited companies were born.

Really, these single person companies were to all intents and purposes, the same as composite ones except that a single person owned all of the shares. These single person companies were very popular during this period. In fact so much so that new legislation was introduced in the 2007 budget in order to shut them down. These new laws saw the end of wage payments as dividends and the start of more complicated payment methods – the most widely used of which was the umbrella company.

With an umbrella company you will still pay PAYE tax as well as National Insurance, however, you are able to claim all legitimate business expenses. The main difference between this new form of company and the old composite companies and single person companies is that the umbrella company does not pay wages or salaries in the form of dividends, to do so would be illegal under the new legislation.

Finally – we should bear in that there are many other advantages to using umbrella companies that go beyond the mere financial; for example, they negate the need to be involved with running a spreadsheet, VAT returns, payroll matters, company accounts, taxation and so on. This in itself is a good enough reason for the majority of companies or individuals to use them.

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International Business Resources

Due to the fact that the world is in the apex of modern technology, internet is one of the powerful international business resources. There are unmistakably plenty of websites where you can get great help especially if you are still launching your career in the global market.

Here is a compilation of international business resources that are divided in different categories such as Asia, Europe and America. The said continents also have particular tools under them.

International Business Resources in Asia
Asian Foundation (www.asianfoundation.com) is a non- governmental, non- profit organization that is dedicated to the enhancement of prosperity in the region. It has programs where it assist in improving governance and reforming economy. With 50 years of experience, the Asian Foundation is partnering with both private and public institutions.

Daiwa Institute of Research (www.dir.co.jp) is a Japanese- based company that is an affiliate of DIR System Management Co. As of March 2005, they have about 1, 621 employees and a capital of 3, 898 million yen. Daiwa Institute of Research provides system solutions and consulting services. They are also partnering with Securities SMBC Co., Management Co., Business Center Co. and a lot more.

International Business Resources in Europe
Euromoney (www.euromoney.com) has started its publication since 1969. All over the years, it has proven that they have compelling editorials, provocative stories, in- depth interviews and extensive research. Euromoney is circulated every once a month that has a round up of key developments in debt, credit, equity, fund, management, finance and exchange. It also covers the issues in surrounding regions such as Asia and America.

Companies House (www.companies-house.com) main functions are to incorporate limited companies, examine the firm’s information and make it known to the public. It includes the Registrar of Companies for both England and Wales together with Claire Clancy who is the Executive at Companies House. This has actually been enjoined since 1844 and the procedures are purely dealt with the country’s laws such as the Acts of 1985 and 1989.

International Business Resources in America
Strategis (www.strategis.ic.gc.ca) is a department of the Federal government that has more than 5,000 people across its country. Produced by Industry Canada, its mission is to work with its citizens to create a progressive and competitive economy. It also aims to enhance the nation’s state of investment as well as making it the most accessible region in the world. Launched about ten years ago, Strategis believes in the power of the information highway to provide consumer information.

North American Industry Classification System (www.census.gov) is joint development project between Canada, United States of America and Mexico. NAICS aims to offer comparability in statistics about business activity all over its continent. With substantial revisions within the Construction and Wholesale Trade sectors, North American Industry Classification in 2002 has a number of changes for the Retail and Information industries.

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