A representative office in the UK is a place of business used not for trading, but rather for marketing, promotional, and general liaison purposes. It is not subject to all of the registration requirements with Companies House, and given its non-trading nature, it is not subject to taxation. The liaison office in London, as it can also be called, can be a first step for entering the UK market, for foreign companies that have yet to test their options, and need a local presence for product sourcing, business ties, and client/customer relations. If you are interested in expanding your business to the United Kingdom, our lawyer in London can give you complete details on the uses, and the advantages of the representative office.
| Quick Facts | |
|---|---|
| Best used for | Non-trading activities, such as market research, advertising, promotional activities for the foreign company. |
|
Prohibited activities |
Commercial ones, activities from which the foreign company would derive income. |
|
Name |
The same as the foreign company’s |
| Legal entity | No, the representative office in the UK is not considered a business entity. |
| Judicial capacity |
No |
| Liability |
Belongs to the foreign company. |
| Types of businesses that can use a representative office in the UK |
Any foreign company that can benefit from promoting its services in the UK, or those interested in first testing the UK market. |
| Limitations on the foreign company |
None, any foreign company may set up such a presence, if suitable. |
| Local representative |
An appointed agent who will run the local operations in the UK. |
| Taxes | No, as it does not derive income. |
| Reporting |
Not applicable |
| Registration |
Registration with the Companies House may be required; please refer to our team for assistance. |
| Alternatives to the representative office in London |
Registration as an overseas company with the Companies House or company creation in the UK. |
| How we can assist you |
Our London UK lawyers can help you during the setup phase for your liaison office. |
| When to contact us | As soon as the board decides that opening a representative office in the UK is favorable. |
Table of Contents
The main characteristics of the representative office
A representative office in London or based in another UK city is used by businesses that are not yet ready to open a permanent establishment in the United Kingdom.
Below, our team highlights some of its main traits:
- a liaison office in the UK is used for market research, sourcing products, keeping in touch with UK business partners and/or clients; it cannot sell goods or services;
- it cannot engage in profit-making activities; a branch is a suitable choice for foreign companies interested in having an extension to perform their activities in the United Kingdom;
- it can hire staff and have a bank account in the UK, however, it will not be subject to corporate taxes, nor to VAT filings.
Our lawyers in the UK are able to give you more details on the requirements the representative office in the UK will need to follow, particularly if one or more employees will work from the office and engage in liaison activities. As an alternative, we are also ready to answer questions about other business forms, such as the branch, a suitable choice for foreign companies interested in deriving income from the UK. Our solicitors in the UK can give you proper details, depending on the industry in which your business activates.
Overseas companies in the UK
Foreign companies have several options when it comes to opening establishments in the UK. As a general rule, a UK establishment is the place of business or the branch of a foreign company. Not all such establishments need to be registered with the Companies House. In fact, partnerships are not registered for this purpose.
A representative office in the UK may need to register with the Companies House even if it will not engage in commercial activities (and it will not be considered a type of commercial enterprise). One of our solicitors will give you information based on your particular activities, and your intentions for expanding to the UK market.
Alternatively, if you are interested in company formation in the UK, our local incorporation specialists will give you complete details about the available business forms (public or private company), and the other options in place (such as partnerships).
We invite you to watch a video about the UK representative office:
According to the Office for National Statistics, the number of businesses has seen a small decrease in 2023, compared to 2022. Our lawyers summarise a set of statistical data, useful for those interested in setting up a representative office in the UK:
- the number of businesses in the UK in March 2023 was 2,726,830, compared to 2,767,700 in 2022;
- the largest industry group comprises companies in the technical, scientific, and professional fields, and makes up 15.2% of all the registered businesses in the country;
- the number of companies in March 2023 was 2,039,920.
Contact us if you are interested in setting up your liaison office in the UK. Our lawyer in England can give you complete details about this business form, as well as the other available business types, such as branches or corporations.
