Thinking of expanding into the UK?
Here’s what to expect.
If you’re planning to set up a company in the UK, getting the structure right from the start can make all the difference. Whether you’re from Australia, New Zealand, Canada, the US, South Africa, or Europe, entering the UK market involves critical decisions around legal structure, tax, payroll, and compliance.
At Paul Beare, we specialise in helping overseas businesses navigate UK expansion. We know that good preparation leads to smooth, successful setups. Here’s the steps you need to consider when looking to establish a UK presence.
At Paul Beare, we specialise in helping overseas businesses navigate UK expansion. We know that good preparation leads to smooth, successful setups. Here’s the steps you need to consider when looking to establish a UK presence.
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Step 1. Choose the Right Legal Entity for Your Goals
Before you do anything else, you need to decide which UK entity structure best suits your business strategy. The three most common options are:
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1. Limited Company (UK Limited)
Simple to set up, this structure allows for individual or corporate shareholders. Ideal for businesses wanting a fresh UK presence with flexibility and limited liability. -
2. Subsidiary (UK Limited owned by overseas parent)
Often chosen by established overseas companies looking to expand. The UK entity operates as a separate legal company but is fully owned by the parent business. -
3. Branch (UK Establishment)
Acts as an extension of the overseas company. Legally tied to the parent company, with some additional compliance requirements. Suitable in some industries, but not always the most tax efficient. -
We work closely with clients to help you weigh the pros and cons of each option and decide which route aligns with your long-term objectives.
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Step 2. Understand UK Directorship and Board Requirements
While only one UK-resident director is legally required to set up a company, we generally recommend appointing two. This adds flexibility, reduces risk and ensures continuous company management.
UK directors are legally responsible for:
UK directors are legally responsible for:
- • Filing annual accounts and confirmation statements
- • Notifying Companies House of any changes (e.g., new directors or address changes)
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Failure to comply can lead to fines or criminal penalties. Appointing Paul Beare as your UK tax agent means we ensure all obligations are met on time.
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Step 3. Consider Appointing a Company Secretary
Although not mandatory, appointing a UK-based company secretary can significantly streamline communication with UK authorities (HMRC, Companies House, etc.), especially when your directors are overseas.
The company secretary can:
The company secretary can:
- • Act as an administrative liaison
- • Sign contracts on director instruction
- • Provide local representation required by some UK banks
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For UK branches, this role is known as the "Authorised Representative."
Paul Beare often fills this role for our clients and provides a registered UK address for official correspondence.
Why Set Up in the UK?
Setting up a UK company adds immediate credibility, opens access to the wider European market, and offers a competitive 25% Corporation Tax rate (as of 2025). It also creates smoother paths to UK banking, hiring, and VAT registration.