UK Business Information / Choice of Entity

Usually the first question for an overseas company wishing to set up in the UK is whether the business is to be run via a subsidiary UK private limited company or a UK establishment.  Normally a subsidiary company will work better than a UK establishment, the chief advantages being:

• an existence independent of the parent allowing the business to be kept separate from the parent and separate shareholdings - including local management - if desired; and

• ease of obtaining local employees and premises.

Other legal entities such as public limited companies (PLC’s), unlimited companies, companies limited by guarantee, LLP’s etc may be used to set up a business in the UK, however, this guidance does not deal with the formation of such entities.

This guidance is intended to provide certain information which may be of interest to an overseas company wishing to set up in the UK.  It is not intended to be a full and comprehensive guide, nor to provide any specific legal advice and it does not discuss the special rules or regulatory requirements which apply to certain special types of companies in the UK.  Professional advice should always be sought in relation to any specific situation.

Copyright SGH Martineau LLP

July 2010