For non-UK entities looking to establish a presence in the UK but not looking to acquire a UK entity, enter into a UK joint venture or appoint an agent/distributor there are, broadly speaking, two options:
- incorporate a private limited company (for example, as a UK subsidiary of an existing non-UK entity)
- set up a UK establishment (more commonly known as a 'branch') of an existing non-UK entity.
The reasons for choosing one over the other will vary significantly from business to business. Typically our overseas clients choose to incorporate a UK subsidiary for their substantive UK business. However, some choose to establish a branch first and then incorporate a subsidiary once UK operations have grown.
The decision whether to incorporate a subsidiary or establish a branch will depend upon a number of factors - a summary of some of the key advantages and disadvantages of each option is set out in the guidance note.