First China order for a UK partnership
Agree that the partnership is buying and importing the goods, nominate a partner for HMRC registration, and arrange the partnership's EORI. Keep buyer details consistent and record each partner's contribution separately from supplier payments. Discuss the order paperwork with Cambridge China Bridge.
Agree the business arrangement before paying
This guide covers an ordinary partnership buying stock for a shared business. Partners personally share responsibility for the business. Before paying a supplier, write down the agreed contributions, profit and loss allocation, spending authority, withdrawal arrangements and treatment of unsold stock. Ask an adviser to review the agreement. For product selection, see our guide to planning your compliance budget.
Confirm that the order is a partnership purchase. If you actually intend to run separate businesses and divide the shipment between them, use our guide to pooling orders. That arrangement needs its own purchasing and ownership records.
Register the partnership and the partners
Choose a nominated partner, who is responsible for the partnership's tax returns and business records. That partner must register the partnership for Self Assessment with HMRC. The other partner registers separately, and each partner must submit an individual tax return.
The registration deadline is 5 October in the business's second tax year. As a practical preparation step, start registration before committing the order so you can assemble the importing details without a dispatch deadline approaching. Keep the partnership's tax reference clearly labelled alongside each partner's separate details.
Arrange the EORI for the importing business
An EORI identifies the economic operator carrying out customs activities. For a partnership purchase and import, arrange the EORI for the partnership and ask the customs agent to confirm the registered identity. Do not simply copy a partner's existing sole trader EORI into the order because that partner is paying the deposit.
Economic operators must register before starting import operations; VAT registration is not a prerequisite for obtaining an EORI. Prepare the partnership's tax reference and any applicable VAT details for the application. Agree the importing arrangement with the agent using who is the importer of record.
Give the supplier a consistent buyer identity
UK guidance requires all partners' names and the business name, if used, on the partnership's official paperwork, including invoices and letters. For the China purchase, ask the supplier to show the partnership's trading name, both partners' full names and the buyer address. This is a practical instruction for supplier documents.
Send the same buyer details block for the purchase order, proforma and commercial invoice. Label the delivery address and receiving contact separately. Ask the agent to reconcile those documents with the partnership's EORI registration before dispatch. Our purchase order and invoice guide explains what each document does.
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Track funding separately from the purchase
Keep a contribution record for each partner showing the date, amount, currency, payment reference and agreed purpose. State whether the money is capital, a loan or reimbursement of an expense, and ask your accountant to confirm the treatment. Record repayment terms and approval of extra funding separately from the agreed profit allocation.
Where possible, route funding through a partnership business account. If a partner pays the factory directly, retain the supplier invoice and payment proof, identify the partnership order, and record what the partnership owes or credits that partner. Reconcile contributions, supplier payments, charges and refunds before approving the balance. Use the first China order checklist for product and shipment checks.
Frequently asked questions
Who registers a partnership with HMRC?
The nominated partner registers the partnership for Self Assessment. The other partner registers separately, and each partner submits an individual tax return.
Can we use my existing sole trader EORI?
For a partnership import, arrange the EORI for the partnership. Ask the customs agent to confirm the registered identity before using an existing number on the shipment.
Whose name should be on the China invoice?
Ask for the partnership's trading name, both partners' full names and the buyer address. Keep the receiving contact separate and ask the customs agent to check the importer details.
How do we record unequal partner contributions?
Keep a separate funding record for each partner. Record the amount, currency, purpose and payment proof, agree whether it is capital or a loan, and document repayment separately from profit allocation.