Foreign companies with their eye on the British market are setting up skeleton operations in the South-East.

They are calling on financial experts in the region to help them with the UK's tax and accountancy practices.

Jonathan Ericson, managing partner in the Brighton office of accountants Baker Tilly, said the region was home to thousands of foreignowned companies focusing on sales and business development prior to setting up fully-staffed UK subsidiaries.

He said: "For many foreign-owned companies, the first step into the UK market is a toe in the water, not a major leap.

"Management resources are often limited and the parent company overseas may have limited knowledge of the UK's taxation and accounting systems."

This was an issue which Baker Tilly was well prepared to address.

"We are increasingly providing foreign-owned companies setting up in this region with a range of business services, allowing them to develop their market in the UK without resourcing finance and company secretarial functions.

"For the parent company overseas, the involvement of an independent third party is important in providing expert help on taxation and transfer pricing issues and in providing essential reassurance the UK subsidiary is being controlled effectively and to a high standard."

This was an excellent time for overseas businesses to launch into the UK or increase their presence in the British market.

Mr Ericson said: "The economy remains stable and overseas businesses can benefit from a number of advantageous tax and VAT-related schemes."