Set up and register your business in the UK

Setting up or expanding your business into the UK is straightforward, and you'll typically choose to set up as either a branch, subsidiary or joint venture. See definitions and advantages and disadvantages for each of these business types.

Branch

A branch is simply a UK office of an overseas company (your existing company). It's also known as a 'representative office' or a 'UK establishment'. A branch is not a separate legal entity. A legal entity is any company or organisation that has legal rights and responsibilities, including tax filings. It typically takes one month to set up a branch.

Advantages

  • It’s relatively easy and inexpensive to establish.
  • Your existing company has complete ownership and control of the branch.
  • The branch can make decisions through its own board of directors.

Disadvantages

  • Your existing company is liable for debts and obligations.
  • It takes longer to set up than a subsidiary (see below), as you must submit documents for your existing company, which will be reviewed as part of an application process.
  • Major decisions may have to be referred to the board or management of your existing company, which can take more time.

Find out more about this business type at Register a UK establishment of an overseas company on GOV.UK.

Subsidiary

You can choose this type of company if you want to create a separate legal entity in the UK to your existing company. You can set up a new subsidiary or acquire an existing subsidiary. Setting up a new one typically takes one day. A subsidiary usually takes the form of a 'limited company'.

Advantages

  • You can set up a subsidiary online, more quickly than other business types.
  • Your existing company has complete ownership and control of the subsidiary.
  • Your existing company will generally have no legal liability for the subsidiary’s debts and obligations.
  • UK businesses and lenders are familiar with this type of business setup.

Disadvantages

  • You must pay a fee at the start, and there are annual legal and registration fees, as well as ongoing accounting costs.
  • If you’re acquiring an existing business, there may be additional higher costs at the start.
  • If you’re acquiring an existing business, decisions must be taken by the board of the subsidiary, which can add extra time and complexity.

If you plan to set up a subsidiary as a limited company, you must register it with Companies House, the government agency responsible for company registration in the UK.

Find out more about this business type at Set up a limited company: Register your company on GOV.UK.

Joint venture

Another business type to consider is a joint venture with a UK partner. A joint venture can take the form of a company or partnership, or operate as a contract. You need to allow a few weeks to months of research and negotiation in order to set up a joint venture.

Advantages

  • UK partners are likely to have good market knowledge and existing contacts with customers, suppliers and lenders, making entry into the new market easier.
  • UK businesses and lenders are familiar with this type of business setup.

Disadvantages

  • Your existing company may need to hand over a significant degree of control to a UK partner.
  • There may be high costs at the start for advice (legal, tax, accounting) and detailed negotiations may be needed with potential partners.

Get professional support

You can engage experts to help you with the process of setting up a business presence in the UK. Find details of UK businesses providing support services in our business directory.

Business insurance

Once you've set up a business presence in the UK, you'll need to obtain various types of insurance cover for different parts of the business. For example, UK law requires you to have third party motor insurance if you use a vehicle for business purposes.

Other things that might have to be insured include assets, income, liabilities and people.

If you decide to employ people in the UK, you must get Employers' Liability insurance as soon as you become an employer. Read our guide on how to employ people in the UK for more information on this.

You can also search for businesses providing UK insurance expertise in our business directory.