Set up a subsidiary or branch for your business in the UK

Expanding your business to the UK is a game-changer. Whether you’re a tech founder in the US, an investor in Dubai, or a CEO in Singapore, setting up a UK subsidiary unlocks access to a thriving market, competitive fiscal policies, and strategic access to European opportunities in the post-Brexit landscape. But navigating the process can feel daunting, especially from a distance. That’s where this guide comes in. We’ll walk you through every step of establishing a UK subsidiary with precision, clarity, and insider tips, all while showing how FormationsHunt makes it seamless, compliant, and stress-free.

This is the only guide you’ll need—a comprehensive, up-to-date roadmap that leaves no stone unturned. We handle everything from regulatory compliance to operational launch. Let’s dive in and make your UK expansion a reality!

What Is a UK Subsidiary Company?

A UK subsidiary is a legally independent company owned, wholly or partially (51% or more), by another company, known as the parent company or holding company. Unlike a branch, which is an extension of the parent, a subsidiary operates as its own entity under UK law, typically as a Private Limited Company (Ltd). This setup provides adaptability, safeguards against liability, and potential tax benefits—an ideal choice for global enterprises.

Key Characteristics of a UK Subsidiary

• Separate Legal Entity: Registered with Companies House, it has its own legal identity, tax obligations, and liabilities, protecting the parent from financial risks.
• Ownership: The parent company holds 51% or more of the shares, with full control if it’s a wholly-owned subsidiary.
• Operational Independence: The subsidiary can operate independently, with its own bank accounts, staff, and strategies, while aligning with the parent’s goals.
• Flexibility: It can operate in different sectors or markets from the parent, e.g., a Dubai-based finance firm launching a UK tech subsidiary.

Before you move forward with the formation of your company in the UK, you should research and plan your expansion.

• Market Analysis: Study the UK market for demand, competition, and risks. For example, tech firms may target London’s startup ecosystem, while eCommerce businesses focus on consumer trends.
• Regulatory Check: Confirm no Foreign Direct Investment (FDI) restrictions apply (e.g., for sensitive sectors like defense). Most industries face no barriers.
• Share Structure: Decide the number and value of shares (minimum £1). Plan whether the parent will own 100% or share ownership with local investors.

FormationsHunt Tip: Our free consultation helps you assess market fit and FDI rules, ensuring a smooth start.

Step-by-Step Guide to Setting Up a UK Subsidiary

Launch Your UK Subsidiary from Anywhere in the World—Effortlessly

Whether you’re in New York, Tokyo, or Dubai, forming a UK subsidiary doesn’t have to mean dealing with endless red tape. With us, it’s a seamless, guided experience designed specifically for international businesses like yours.

Our Subsidiary Package (£169.99) is built to ensure full compliance with the UK Companies Act 2006 and HMRC regulations (as of May 28, 2025). Perfect for setups involving a foreign parent company as a corporate shareholder, and even a corporate director or PSC, this package includes everything you need for a smooth, remote formation—UK registered office address, VAT registration, international document delivery, and more.

We’ll walk you through the process on our platform step by step—just like you’re doing it in real time.

Ready to establish your presence in the UK? Let’s get started.

1. Choose Your Company Name

Your UK subsidiary deserves a name that grabs attention in the British market—perhaps it echoes your parent brand (like “TechWorks UK Ltd”) or has a local flair (say, “LondonTech Ltd”). It must be unique, not too close to existing Companies House registrations, and free of restricted terms like “British Government” unless approved.
On our platform, head to our Name Availability Checker. Type in your desired name, and you’ll instantly know if it’s available. If it’s taken, run as many free searches as you need to find the perfect one. Once you’ve nailed it, you’re ready to move forward.

2. Select the Subsidiary Package

Let’s get your subsidiary rolling with the subsidiary Package (£169.99), crafted for non-UK residents. This all-in-one solution saves you over £150 compared to individual services and includes everything for a seamless setup:

• UK Registered Office Address: Free for the first 12 months, providing a prestigious address in London, E8. Know more.
• Director’s Service Address: Free for your first director for 12 months (£29.99/year after), keeping personal addresses private. Know more.
• Mail Forwarding Service: Free for the first 12 months (£98.99/year after), ensuring you receive frequent UK correspondence like parcels or letters. Know more.
• Free Domain Registration: A .co.uk domain for one year to boost your online presence.
• VAT Registration and Confirmation Statement Filing: Free, simplifying tax and compliance. We offer VAT Registration and Confirmation Statement Filing as complimentary services, ensuring that your tax registration and compliance requirements are handled with ease and efficiency.
• International Document Delivery: Shipping documents worldwide.
• WorldFirst Bank Account Setup: Free assistance to open a UK bank account remotely.
You’ll land on the package selection page. Click to choose the Non-Resident Package, then head to checkout. Pay now or defer payment until the end—your choice! This package is perfect for subsidiaries, handling corporate shareholders and PSCs with 24/7 support.

Why It Matters: The subsidiary Package ensures you meet UK requirements without visiting, making your expansion effortless.

3. Configure Your Subsidiary in the Online Company Manager

Now, the fun begins! After selecting the package (and paying, if you chose to pay upfront), log in to our Online Company Manager via the Login Page. On the dashboard, you’ll see “My Companies,” listing your subsidiary (e.g., “CityRetail UK Ltd”). Click its name, and let’s shape your UK presence, page by page.

You’ll start on a setup page to lay the groundwork. First, confirm your subsidiary as a Limited by Shares (Ltd)—the ideal choice for subsidiaries due to its flexibility, £1 minimum share capital, and liability protection for your parent company. Our platform pre-selects this, but you’ll verify it fits.

Next, choose your jurisdiction—England and Wales, Scotland, or Northern Ireland—where your subsidiary will be registered. Most international businesses pick England and Wales for its global prestige, like London’s business hub. Select from our dropdown menu, and you’re set.

Then, you’ll pick your SIC code, which tells Companies House your subsidiary’s industry. Whether you’re in software development (SIC 62012), retail (SIC 47910), or vehicle manufacturing (SIC 29100), our platform offers suggestions to find the right code. Browse and select one that matches your business, ensuring clarity and compliance. To learn more about SIC codes, explore our comprehensive guide on the topic by clicking here.

Now, you’ll reach the UK registered office address page. With the subsidiary Package, you get a professional UK address (e.g., in London) free for the first 12 months. You’ll see this address pre-filled from your package—no need to enter it yourself! However, you must add a forwarding address (like your overseas office in Dubai or Tokyo) where we’ll send any physical mail or parcels received at the registered office, such as Companies House or HMRC letters. This keeps you connected to your UK operations. Simply type in your forwarding address, and you’re good to go.

Right after, you’ll land on the Mail Forwarding Service page. Since this service is included free for the first 12 months with the subsidiary Package, it’s already pre-selected. This service ensures you receive frequent UK correspondence, like product samples, client letters, or supplier packages, separate from official registered office mail. Just add a forwarding address (same or different from the registered office one) to receive these items at your chosen location, ensuring nothing gets missed. Once you’ve entered the forwarding address, click Next to proceed.

4. Appoint Your Directors, Shareholders, and PSC

You’ve arrived at the page to appoint your subsidiary’s key players. In the Online Company Manager, you’ll set up your directors, shareholders, and Person with Significant Control (PSC)—essential for UK compliance.

Start with at least one director, who can be an individual or corporate entity and doesn’t need to be UK-based. For a corporate director (e.g., your parent company), enter the authoriser’s details (title, first name, last name) and corporate details (legal name, UK registration status, company number if applicable, legal form, registered address, authentication answers). For an individual, provide their details. The subsidiary Package includes a free director’s service address for the first director for 12 months, keeping personal addresses private.

Next, appoint your shareholder, typically your parent company, as a corporate shareholder. Specify the share details: number of shares (e.g., 100), currency (usually GBP), and price per share (e.g., £1). This defines ownership, often with the parent holding 100% for full control.

Finally, declare your PSC, identifying who has significant control (over 25% shares or voting rights). For subsidiaries, this is usually the parent company as a Corporate PSC. Enter its name, registration number, country of incorporation, registered office address, legal form, governing law, and nature of control (e.g., >75% shares). If an individual has control, provide their full name, date of birth, nationality, and addresses. Our platform’s intuitive fields simplify this.

FormationsHunt generates Share Certificates and corporate appointment documents automatically, with schema-compliant XML filings for accuracy. Click Next to move on.

5. Allocate Shares

Now, you’re on the share allocation page, defining your subsidiary’s ownership. In the Online Company Manager, decide how many shares to issue, their class (usually “Ordinary”), and their nominal value. Most subsidiaries allocate 100% to the parent company—like one share for full ownership or 100 ordinary shares at £1 each. For multiple shareholders, set percentages (e.g., two shareholders with one share each for 50/50 ownership).

Enter these details, and our platform generates Share Certificates instantly. This step solidifies your parent company’s control, meeting Companies House requirements. Click Next to proceed.

6. Set Up Your Memorandum and Articles of Association

Every UK subsidiary needs a Memorandum and Articles of Association, the legal documents outlining its operations. On this page, you’ll see our default set, pre-approved and perfect for most subsidiaries, already selected. This ensures a fast, compliant process. Want custom documents? You can upload them, but errors could delay filing, so most clients stick with our defaults.

Confirm your choice, and click Next to move forward.

7. Review and Submit Your Application

You’re nearly there! On the final review page, you’ll see a summary of all your entries—company name, jurisdiction, SIC code, addresses, officers, shares, PSC, and documents. Review each detail carefully. Need to tweak something? Jump back to any section to edit. If you deferred payment in Step 2, pay securely now.

Before submission:

• Double-check all information (names, addresses, shareholding).
• Download a copy of the review summary from the review page
• Ensure that corporate appointments and PSCs are correctly entered.

When everything’s spot-on, hit Submit. Our platform flags errors, and our team performs manual compliance checks to ensure your application is perfect. We’ll file it with Companies House, who typically approve within 24 hours. You’ll get a notification when your subsidiary is registered.

8. Submit Your ID and Address Proof

Before your company formation can be finalised, there’s one crucial compliance step you must complete: identity and address verification. This is a legal requirement in the UK, in line with anti-money laundering (AML) and Know Your Customer (KYC) regulations. It applies to all directors, shareholders, and persons with significant control (PSCs).

After you’ve completed your application and made payment, we will request the following documents:

Acceptable Proof of Identity (any one of the following):

• A valid passport (not expired)
• A national identity card showing your name, photograph, and date of birth
• A current driving license
• A residence permit
• A state-issued identity card
• A picture holding your ID

Acceptable Proof of Address- 3 months old (any one of the following):

• A utility bill (gas, electric, or water) issued within the last 3 months
• Council tax bill for the current tax year
• A bank statement
• A mortgage statement
• An official tax demand letter
• A current tenancy agreement

All documents must be clear, and valid, and display your full name and current residential address. Upload clear, high-quality scans, and our team will review them promptly, guiding you if corrections are needed. This step finalizes your compliance, ensuring your subsidiary is fully verified.
Our support team is on standby to guide you through this step, ensuring a smooth and stress-free verification process. Once your documents are approved, your company formation will proceed to the final stage.

9. Receive Your Official Documents

Congratulations—your subsidiary is live! Once Companies House approves, you’ll receive all official documents digitally via email, with physical copies shipped worldwide (free with the subsidiary Package). You’ll get:

Your subsidiary is ready to trade, open a bank account with WorldFirst, or register for taxes. Welcome to the UK market!

Parent vs. Holding Company

Parent Company: A business that trades independently and owns one or more subsidiaries. Example: Tesco, with subsidiaries like Tesco Bank and Tesco Mobile.
Holding Company: Exists solely to own subsidiaries, without its own trading operations.

Subsidiary vs. Branch vs. Representative Office

To clarify your options, here’s a comparison:

Our Insight: 75% of our international clients choose a subsidiary for its liability protection and operational control, making it the go-to choice for serious UK expansion.
Why It Matters: Understanding these distinctions helps you choose the right structure. A subsidiary is ideal for businesses seeking a robust UK presence without exposing the parent to risks.

Why Set Up a UK Subsidiary?

The UK is a global business hub, offering a stable economy, a 25% corporate tax rate (as of 2025), and access to over 60 million consumers. Post-Brexit, it remains a gateway to Europe via trade agreements. Here’s why a UK subsidiary is a strategic move:

Benefits of a UK Subsidiary

• Limited Liability: The parent company is shielded from the subsidiary’s debts or legal issues, protecting assets if the subsidiary faces losses.
• Market Access: Tap into the UK’s affluent market and leverage trade deals for EU access, ideal for e-commerce, tech, or consulting firms.
• Tax Advantages: Benefit from the UK’s 25% corporate tax rate, deductions (e.g., R&D relief), and double taxation treaties with over 130 countries.
• Brand Flexibility: Launch new products or services under a separate brand without affecting the parent’s reputation. Example: A Singapore finance firm launching a UK media arm.
• Local Credibility: A UK subsidiary builds trust with clients, partners, and investors who prefer dealing with a UK-registered entity.
• Operational Efficiency: Hire UK staff under local laws, open UK bank accounts, and streamline processes with shared resources.

Real-World Example

Imagine a Dubai-based pipe manufacturing company, “Pipeland,” wanting to launch a UK tech product. By setting up a subsidiary with us, they established Pipeland UK Ltd, protecting their Dubai operations while testing the new product in the UK market. Within 3 months, they secure local partnerships and a good investment, all thanks to their UK presence.

Question to Reflect: What are your business’s goals for a UK subsidiary? Are you prioritizing market expansion, tax benefits, or brand diversification?

Key Considerations for International Businesses

Setting up a UK subsidiary requires navigating unique challenges. Here’s what international businesses need to know:

Brexit Implications

• Trade Rules: Post-Brexit, the UK-EU Trade and Cooperation Agreement (2020) ensures tariff-free trade for most goods, but customs checks apply.
• Market Access: The UK remains a gateway to Europe, with trade deals like the UK-Canada Agreement (2024) boosting global reach.
• Compliance: Ensure your subsidiary meets UK-specific standards (e.g., product certifications, labeling).

Double Taxation Treaties

The UK has treaties with over 130 countries (e.g., India, UAE, Singapore) to avoid double taxation on profits. Consult a tax advisor to claim relief or contact us to get an appointment with a financial advisor or CA.

Our Insight: Our compliance team connects you with tax experts to maximize treaty benefits.

Visa Requirements

• Directors: Non-residents can manage without a UK visa, as long as decisions are made remotely.
• Employees: A Skilled Worker Visa requires a UK sponsor (your subsidiary) and a Certificate of Sponsorship (£239–£1,639, 2025 rates).

Cultural Nuances

Business Practices: UK clients value punctuality, transparency, and formal communication.
Consumer Expectations: Adapt marketing to UK preferences (e.g., eco-friendly products for millennials).

Why Choose Us?

Setting up a UK subsidiary is simple in theory, but precision is critical. Unlike generic formation providers, FormationsHunt specializes in international businesses, offering:

• Corporate Shareholder Expertise: Schema-compliant XML filings for error-free submissions.
• Subsidiary Package: Tailored for overseas clients, including registered addresses and VAT registration.
• Worldwide Document Delivery: Tracked delivery of Certificates of Incorporation and share certificates.
• Compliance Assurance: Manual reviews ensure 100% adherence to Companies House and HMRC rules.
• Bonus Features: Free domain name, UK phone line, and first Confirmation Statement filing.

Success Story: A US tech firm, “InnovateNow,” partnered with us to launch “InnovateNow UK Ltd.” Our team handled corporate PSC filings, secured a London address, and opened a WorldFirst bank account in 10 days, enabling them to secure a £1M UK investment.

FAQs

Q: Can a foreign company own 100% of a UK subsidiary?
A: Yes, a foreign parent can own 100% of the shares, with no UK residency required.

Q: Is it necessary to travel to the UK to establish a subsidiary?
A: No, FormationsHunt handles everything online, from name checks to HMRC registration.

Q: What are the tax implications?
A: The subsidiary pays UK corporate tax (25% in 2025). Double taxation treaties may apply for foreign parents.

Q: How quickly can I set up a subsidiary in the UK?
A: Incorporation takes 3–24 hours with us. Full setup (bank account, VAT, etc.) takes 1–3 months.

Q: What documents will I receive?
A: Incorporation certificate, shareholder certificates, constitutional documents (Memorandum and Articles of Association), and HMRC tax reference numbers.

Q: How does Brexit affect UK subsidiaries?
A: Brexit introduces customs checks but maintains tariff-free EU trade for most goods. FormationsHunt ensures compliance with new rules.

Conclusion: Launch Your UK Subsidiary with Confidence

A UK subsidiary is your ticket to global growth, offering liability protection, tax benefits, and a trusted UK presence. Whether you’re expanding from Dubai, Bangalore, or Singapore, we make the process effortless, compliant, and tailored to international businesses. Don’t waste time navigating Companies House forms or risking compliance errors. Start with our subsidiary package and launch your UK subsidiary the right way—today.

Ready to Begin?
Contact us for a free consultation via call, mail or WhatsApp or use our online platform to check your company name and get started. Let’s make your UK expansion smooth, swift, and successful!

Find us on Social Media: Get expert tips and step-by-step guidance on forming and running your UK company. From setup to success, our social media channels offer everything you need for your UK subsidiary journey.

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