Open a Subsidiary in UK

Opening a subsidiary in UK can be the most suitable option to expand the activities of a larger company in the United Kingdom.

Unlike the branch, the subsidiary will be separate from its parent company, albeit remaining controlled by it.

A subsidiary in the UK is incorporated as a standalone company, however, the parent company retains more than 50% of interest in the subsidiary (stock and majority voting rights).

Registering a subsidiary company in UK is not the same as registering a branch of an overseas company, due to the fact that the subsidiary will represent a physical presence through which the overseas entity will carry out its business.

Registration with the Companies House will take place as prescribed by law, for the chosen business form.

Opening a subsidiary in the UK in 2025 is easier with our help. Read the short guide below and then contact our lawyer in London, UK for more information about our company registration services.

The characteristics of the UK subsidiary

The UK subsidiary is merely an extension of an overseas company. It is subject to the UK corporate rules and regulations, at the same time serving the interests of a larger corporation abroad, given the fact that it is controlled by it.

Our lawyer in London highlights the following traits:

1. Distinctiveness: the subsidiary is a separate legal entity from its parent company, the overseas company;
2. Control: the overseas company controls its subsidiaries (in the UK and other locations) through majority shareholding;
3. Liability: the parent company abroad is not fully liable for the debts and obligations of its subsidiary; at most, only to the extent of its ownership;
4. Incorporation: registering a subsidiary company in UK is done with the Companies House, in accordance with the rules for the chosen business form.

The decision to set up a subsidiary is one that is taken in accordance with the goals of the foreign company in terms of its expansion targets.

Foreign companies in the UK can receive personalized guidance and solutions from our lawyer in England. We offer tailored solutions for business disputes, data protection matters, GDPR issues, commercial and corporate law, as well as many other cases. Branches or subsidiaries of foreign companies can rely on our solutions. Find out more about our services by contacting our lawyer.

Subsidiary registration process in 2025

Opening a subsidiary in the UK is a multi-step process that starts with choosing a suitable business form.

An overseas company can set up a subsidiary in the form of a private company or a public limited company, depending on whether or not it will offer its shares for sale.

The key steps are the following:

1. Choose a suitable business name: the name needs to be unique and available for use; it cannot contain certain words or expressions;
2. Set the registered address: the subsidiary will have a physical, registered address in the United Kingdom;
3. Gather the documents: the filled-in application, the Memorandum of association, the Articles of association and additional information in some cases;
4. Make the application: the documents are submitted to the Companies House for formal registration.

Fees apply when registering an overseas company in the UK or when incorporating a UK-based company. Presently, the paper submission for the registration of a local company or the UK establishment of an overseas company is subject to the same fee of £71.

Our team will assist you throughout the process needed for registering a subsidiary company in the UK.

Subsidiary taxation in the UK

The subsidiary is treated as a tax resident. This is an important consideration when opening a subsidiary in the UK.

Our tax lawyer in the UK lists the main taxes applicable to UK corporations:

• Corporate income tax rate: 25% main rate;
• Dividend tax: 0% withholding tax on dividends paid by UK companies under domestic law;
• Value-added tax: 20% standard rate, 5% reduced rate and 0% for some types of goods and services;
• Social security contributions: for the tax year between 6 April 2024 and 5 April 2025, employers pay a national insurance contribution of 13.8% of the employee’s salary on all income exceeding GBP 175 per week. Our team can give you more details.

We can give you more information about the taxation of the subsidiary upon request.

UK business statistics

According to data from the Companies House, the number of registered legal entities in the UK has increased between June and September 2024. Our team summarizes the data released by the Companies House:

• There were 4,897,355 companies on the effective register at the end of September 2024. The total number of companies on the register was 5,417,796. The total register size also includes companies that are under dissolution or liquidation, hence the difference in the two values;
• Compared to the end of June 2024, the number of companies increased by 0.33 in September (or 17,884 legal entities).

Our team assists all those who are interested in company formation in UK, whether they wish to open a subsidiary or not. Receiving proper counsel before you pick out the business form is important, as you will be able to determine the advantages and the responsibilities that come with each type of business. Most businesses register as a limited company, which can also be used in the case of a subsidiary.

Our team can help you incorporate, as well as handle other commercial matters.

If you would like to set up a subsidiary in the UK this year, or need information on the incorporation steps before you start the process, we can answer your questions.

We offer services in Central London, Canary Wharf, as well as many other areas throughout Greater London.

Contact us if you are interested in registering a subsidiary company in UK in 2025.