You have your clerical side of things i.e tax rules, business set up complience etc
Then you have your front end side of things. i.e if your advertising your site on say a .co.uk website and all your products are in ?'s..., it might look a bit dodgy if someone clicked on the contact us and saw your registered office or place of trading was in Burma.
I believe as long as you set it up correctly, everything is fine doing it this way, but i would where possible always try and keep everything local to your market
Source: http://www.ukbusinessforums.co.uk/forums/showthread.php?t=296766
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