Legal Question in Credit and Debt Law in United Kingdom

Re: How can I assure payments from My Client in the UK ?

Dear Sir,

We are a full service law firm based in the UK with attorneys qualified in US, UK and India. (www.sawarn.com). Here are the brief answers to your questions:

1. Escrow account is safe if it is supported by an Escrow Agreement.

2. Obviously you would enter into a solid services agreement with the other party in which you would spell out different options you will have if they fail to make payments to you. One way ofcourse is to file a suit against them in India and collect the judgement here in the UK.

3. Personal guarantee and other security

4. We could help you with incorporation, agreements to safeguard your position in this new venture.

We look forward to hearing from you.

Best Regards,

Simi Manku

[email protected]

www.sawarn.com

Re: How can I assure payments from My Client in the UK ?

Assuring payments is more into the realms of business strategy. Your services should as far as maybe done on a secure basis. Seek credit references and financial references from this client in the U.K. Find out as much as you can about this U.K company through your existing customers there. Once you are convinced that this is a reliable company with a good track record, negotiate payment terms through effective documentation. There are excellent strategies in securing payment and managing the risk to your overseas entitlements. THere are several organizations specializing in risk management and insuring the risk of non payment. Escrow Disbursement Accounts are an effective method of securing payment. Once the work is done you have a right to foreclose on the amount without any delay. The Escrow agreement has to be carefully worded to ensure that the amount is not forfeited. You can include an arbitration clause in your general agreement with the U.K company. Nominate the Indian Council for Arbitration as your Arbitrator and do not agree to any international arbitration since these can be very expensive. Engaging an overseas attorney can be very consuming and exorbitant. Incorporating a company in the U.K is as easy as it is in India. You need a name approval from the Registrar of Companies, the Articles and Memorandum of Association will have to be framed and you will need to decide on teh amount of authorized capital to set up your entity there. There are standard templates for all this and so many website that help you do it yourself. Visit the Registrar of Corporations in Britain during your next trip and get a first hand view of the procedures to incorporate your company. Go to a solicitor only when there is a real need since legal costs in the U.K can be very expensive. Wish you the very best in your endeavors.