Set up and register your business in the UK

Generally, you would choose to set up as a:

• private limited UK company
• an overseas branch of your existing company
• a joint venture with a UK business

Registering your business

Business registration is commonly referred to as “incorporation” in the UK. If you’re incorporating your business, you must register it as a company with the UK government agency, Companies House.

Check what type of business is right for you

Private limited company

A company of this type is known as a “subsidiary”.

If you want to incorporate a company as a separate legal entity in the UK, forming a private limited company is the most commonly used option. A legal entity is any company or organisation that has legal rights and responsibilities, including tax filings.

Advantages

• The process can be done online, and is quick, typically taking less than 24 hours
• The overseas company has complete ownership and control of the subsidiary business
• The overseas company will generally have no legal liability for the subsidiary’s debts and obligations
• Local businesses and lenders are familiar with the business format

Disadvantages

• There may be substantial up-front costs if you’re acquiring an existing business
• Decisions must be taken by the board of the subsidiary, which can add extra time and complexity
• There is a one-time set up cost, legal and registration fees of around £1,000 every year and associated accounting costs

Time it takes

One day

UK branch of an overseas company 

This is also called a “representative office” or a “UK establishment”. A branch is not a separate legal entity. It’s simply an office or presence of the overseas company in the UK.

Advantages

• It’s relatively easy and inexpensive to establish
• The overseas company has complete ownership and control of the local business
• It can make decisions through its own board of directors

Disadvantages

• The parent company is liable for debts and obligations
• It takes longer to register than a limited liability company. You must submit documents and information to Companies House, and these must be reviewed
• Major decisions may have to be referred to overseas management, which can take more time

Time it takes

Around 4 weeks

Joint venture

Another business arrangement you may want to consider is a venture with a local partner. This can be structured through a company or partnership, or solely by contract.

Advantages

• Local partners are likely to have good market knowledge and existing contacts with customers, suppliers and lenders, making entry into the UK market easier
• Local businesses and lenders are familiar with these types of arrangements

Disadvantages

• Your company must hand over a potentially significant degree of control to a local partner
• There may be substantial up-front costs for advice (legal, tax, accounting) and detailed negotiations may be needed with potential partners

Time it takes

Likely to be a few weeks to a few months of research and negotiation

Other types of company incorporations 

You can also incorporate a company as a sole trader, in which you have all liability for company debts, or a partnership where you share the liability with other partners in the business.

Next steps

Register an overseas company with Companies House if you want to set up a place of business in the UK.

Find out more about company types, preparation and documentation for company registration in a step by step guide on the UK government website.