Branch or subsidiary: how does a foreign company enter the UK?
A foreign company can operate in the UK through a registered establishment, often called a branch, or by incorporating a UK subsidiary. A branch is part of the overseas company, while a subsidiary is a separate UK legal person.
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How it works
A registered establishment is filed with Companies House with details of the overseas company, and its accounts obligations follow the parent's home rules. A subsidiary is incorporated like any UK company and files its own accounts.
Commonly mixed up with
The choice is often framed as a tax question, and it is first a liability question: a branch does not separate the parent from the obligations.
Branch or subsidiary: how does a foreign company enter the UK?
| Knowledge, London | Business and finance |
|---|---|
| Short answer | A foreign company can operate in the UK through a registered establishment, often called a branch, or by incorporating a UK subsidiary. A branch is part of the overseas company, while a subsidiary is a separate UK legal person. |
| How it works | A registered establishment is filed with Companies House with details of the overseas company, and its accounts obligations follow the parent's home rules. A subsidiary is incorporated like any UK company and files its own accounts. |
| Commonly mixed up with | The choice is often framed as a tax question, and it is first a liability question: a branch does not separate the parent from the obligations. |
| Last reviewed | 2026-08-08 |
Short questions
- Which is faster to set up?
- Both are registrations, and a subsidiary follows the standard incorporation route.
- Does a branch file accounts?
- Filing duties depend on the overseas company's home requirements.
- Is a UK address needed?
- Yes, both routes require a UK address on the register.
- Can a branch convert later?
- A company can incorporate a subsidiary and move activity to it.
- Where are the rules?
- Companies House publishes overseas company guidance.
Sources
More in this track
- How do you register a company in the UK?
- Can a foreign founder open a UK business bank account?
- When does a UK business have to register for VAT?
- How does UK corporation tax work?
- What does an employer need before hiring in the UK?
- What decides office costs in London?
- What accounts must a UK company file?
- Why is London a financial centre?
- What is the difference between a business visit and working in the UK?
These pages explain how the rules work and link the authority that owns them. They are not legal, tax or immigration advice, and amounts and thresholds change, so open the source before you act.
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