UK Establishment (Branch) in United Kingdom
UK Branch · Formation from $157
Last verified: June 13, 2026
Corporate Tax
25.0%
State Tax
0.0%
Formation Cost
$157
Annual Fee
$140
Comparison Scores
Privacy, remote setup, banking, and tax efficiency
Calculate full formation cost
Break down one-time filing fees and recurring costs for any supported entity type.
Who Should Choose This?
Profiles that typically benefit from this entity
- Large multinational corporations wanting a direct operational footprint in the UK.
- Companies in the early stages of UK expansion that want to offset initial UK losses against home-country profits.
- Businesses in highly regulated sectors (like banking or insurance) where operating on the parent company's balance sheet is required.
- Companies that prefer to maintain a single global corporate entity rather than managing multiple international subsidiaries.
Who Should Avoid This?
Scenarios where another structure may be better
- Founders who want to ring-fence their UK liabilities to protect their main overseas business.
- Companies that wish to keep their parent company's financial accounts private and off the UK public register.
- Startups looking for fast, digital, and low-cost UK incorporation (a UK Limited Company is faster and fully digital).
Advantages
- +No separate share capital required to establish the branch.
- +Direct control and integration with the overseas parent company.
- +Losses incurred by the UK branch can often be offset against the parent company's profits in its home jurisdiction.
- +Easier to wind up or close down compared to a separate UK subsidiary.
- +Leverages the established brand, trading history, and credit rating of the parent company.
Disadvantages
- -The overseas parent company is fully liable for all debts and legal liabilities of the UK branch.
- -Requires filing the parent company's financial accounts on the UK public register, reducing privacy.
- -Registration is paper-based (Form OS IN01) and slower than digital subsidiary incorporation.
- -Complex tax compliance, as apportioning profits to the UK branch is subject to strict transfer pricing rules.
- -Higher initial registration fee (£124) compared to the digital incorporation of a standard UK limited company (£100).
Formation Steps
Step 1: Establish a physical presence in the UK, such as leasing an office or securing a place of business.
Step 2: Appoint a UK-resident representative who is officially authorised to accept service of documents on behalf of the company.
Step 3: Prepare certified copies of the parent company's constitutional documents (with certified English translations if the originals are in another language).
Step 4: Obtain the latest set of the parent company's financial accounts, translated into English if required.
Step 5: Complete Companies House Form OS IN01 (Registration of an overseas company opening a UK establishment).
Step 6: Submit the paper application along with the £124 registration fee to Companies House within one month of opening the establishment.
Step 7: Register for UK Corporation Tax with HM Revenue & Customs (HMRC) within 3 months of starting business operations.
Step 8: Register for UK VAT and PAYE (payroll) if applicable to the branch's trading activities and employee count.
Cost Breakdown
Detailed breakdown of formation and ongoing costs
| Item | Type | Amount |
|---|---|---|
| State filing fee (Form OS IN01) | One-time | $157 |
| Certified document translations (Estimated) | One-time | $300 |
| UK Representative & Registered Address | Annual | $400 |
| Annual Accounts Filing Fee (Digital) | Annual | $63 |
| First year total | $857 | |
| Annual ongoing | $463 | |
Real-World Examples
Typical use cases for this entity type
- Foreign banks (e.g., a US or European bank) operating a London branch to utilize the parent bank's massive capital base for regulatory purposes.
- International airlines maintaining a UK establishment for their ticketing, marketing, and operational staff at UK airports.
- Global retail brands testing the UK market with a flagship store before committing to the administrative overhead of a full subsidiary structure.
Common Mistakes
Pitfalls to avoid during setup and operations
- Assuming a UK branch provides limited liability protection for the overseas parent company.
- Failing to register the establishment with Companies House within the strict one-month deadline after opening a physical place of business.
- Forgetting that the parent company's accounts must be translated into English and filed publicly every year.
- Confusing a UK establishment (branch) with a UK subsidiary (a separate limited company).
- Neglecting complex transfer pricing rules when allocating profits and expenses between the parent company and the UK branch.
Other entity types
Other formation options in United Kingdom
Private Limited Company (LTD)
- Tax
- 25.0%
- Formation
- $134
Limited Liability Partnership (LLP)
- Tax
- 0.0%
- Formation
- $134
Scottish Limited Partnership
- Tax
- 0.0%
- Formation
- $127
Public Limited Company (PLC)
- Tax
- 25.0%
- Formation
- $134
Company Limited by Guarantee
- Tax
- 25.0%
- Formation
- $125
Unlimited Company
- Tax
- 25.0%
- Formation
- $127
Community Interest Company
- Tax
- 25.0%
- Formation
- $146
Compare with Other Countries
| Country / Type | Tax | Formation | Annual |
|---|---|---|---|
| 🇬🇧 UK Establishment (Branch)(UK Branch) | 25.0% | $157 | $140 |
FAQ
Is a UK establishment a separate legal entity?
No, a UK establishment (branch) is not a separate legal entity. It is legally an extension of the overseas parent company.
What is the registration fee for a UK establishment in 2026?
As of February 2026, the Companies House fee for registering a UK establishment via paper Form OS IN01 is £124.
Do I need to file the parent company's accounts in the UK?
Yes, in most cases you must file the overseas parent company's annual accounts with Companies House, where they will be publicly accessible.
Can I register a UK establishment online?
No, currently the registration of a UK establishment must be completed using a paper application (Form OS IN01) sent by post.
Who is liable for the debts of the UK branch?
Because the branch is not a separate entity, the overseas parent company is fully liable for all debts and obligations incurred by the UK establishment.
How long do I have to register after opening a UK branch?
You are legally required to register the UK establishment with Companies House within one month of opening your physical place of business in the UK.
Does a UK branch pay UK Corporation Tax?
Yes, the branch is subject to UK Corporation Tax (up to 25%) on the profits that are attributable to its operations within the UK.
Do I need a UK resident director for a branch?
You do not need a UK resident director, but you must appoint a person resident in the UK who is authorised to accept legal documents on behalf of the company.
Detailed Tax Rates
Corporate Income Tax
| From | To | Rate |
|---|---|---|
| $0 | $50,000 | 19.0% |
| $50,001 | $250,000 | 25.0% |
| $250,001 | No limit | 25.0% |
The UK corporate tax rate is 25% for profits over £250,000. A small profits rate of 19% applies to companies with profits under £50,000. For a UK branch, these thresholds are divided by the total number of associated companies worldwide, meaning most branches of overseas companies pay the main 25% rate.
Personal Income Tax (Top rate: 45.0%)
| From | To | Rate |
|---|---|---|
| $0 | $12,570 | 0.0% |
| $12,571 | $50,270 | 20.0% |
| $50,271 | $125,140 | 40.0% |
| $125,141 | No limit | 45.0% |
The standard Personal Allowance is £12,570, which is tax-free. The allowance decreases by £1 for every £2 earned above £100,000, disappearing completely at £125,140. Scottish taxpayers are subject to different income tax bands.
Capital Gains Tax
24.0%
Following the Autumn Budget 2024, the higher rate of Capital Gains Tax is 24%, while the basic rate is 18%. The annual tax-free allowance is £3,000.
VAT / GST
20.0%
Registration Threshold: GBP90,000
Non-UK businesses providing digital services to UK consumers must register for UK VAT regardless of turnover (no threshold applies).
Withholding Tax
The UK generally does not levy withholding tax on dividends. A 20% withholding tax applies to interest and royalties, which can often be reduced or eliminated under double taxation treaties.
Payroll & Social Security
From April 2025, employers pay 15% National Insurance on earnings above £5,000 per year. Employees pay 8% on earnings between £12,570 and £50,270, and 2% on earnings above that.
Other Taxes
Stamp Duty Reserve Tax (SDRT)
A 0.5% tax is charged on electronic transfers of shares in a UK company. A new 3-year exemption applies to newly listed companies from November 2025.
Unassessed Transfer Pricing Profits (UTPP)
Replacing the Diverted Profits Tax from 2026, UTPP is charged at 31% (6% above the main corporate rate) to counter arrangements designed to divert profits from the UK.
Incentives & Support
Annual Investment Allowance (AIA)
100% tax relief on qualifying plant and machinery investments up to £1 million.
Deduct the full cost of qualifying assets from profits before tax.
Eligibility: UK branches subject to UK Corporation Tax purchasing qualifying business assets.
Merged R&D Expenditure Credit (RDEC)
Tax relief for companies working on innovative projects in science and technology.
A taxable credit of 20% on qualifying R&D expenditure.
Eligibility: UK branches subject to UK Corporation Tax that undertake qualifying R&D activities.
Formation Requirements
Minimum Capital
No requirement
A UK branch is not a separate legal entity, so there is no minimum share capital requirement.
Local Director
Not Required
Must appoint a UK-resident representative authorized to accept legal documents on behalf of the company.
Registered Office
Required
Virtual office allowed. $150 - $500/year
Notarization Required
Yes
Power of Attorney (Remote)
Required
Required if a third-party corporate service provider is signing and submitting the registration forms on behalf of the overseas company.
Timeline
Standard: 14-21 days days
Required Documents
- 1Form OS IN01 (Registration of an overseas company opening a UK establishment)
- 2Certified copy of the parent company's constitutional documentsApostille needed
- 3Certified English translation of constitutional documents (if applicable)
- 4Latest set of the parent company's financial accounts
- 5Proof of identity for overseas directors (Form OS VS01)
Compliance & Reporting
Annual Filings
Parent Company Accounts (Form OS AA01)
Penalty: Late filing penalties range from £150 to £1,500 depending on the delay.
UK Corporation Tax Return (CT600)
Penalty: £100 penalty for missing the deadline, with further penalties for continued delay.
Audit Requirement
Not Required
Depends on the parent company. If the parent company is audited under its local law, those audited accounts must be filed in the UK.
Accounting Standard
Parent company's local GAAP or IFRS
Tax Return Deadline
12 months after the end of the accounting period (tax payment is due 9 months and 1 day after).
VAT Filing Frequency
Quarterly (if registered for VAT)
Data Protection
Must register with the Information Commissioner's Office (ICO) and pay an annual fee (typically £40-£60) if processing personal data.
Banking & Payments
Wise Business
Remote-friendlyExcellent for multi-currency accounts and fast, remote onboarding for UK branches of overseas companies.
Revolut Business
Remote-friendlyPopular fintech offering multi-currency accounts, corporate cards, and API integrations. Remote opening available.
Barclays
A traditional high-street bank with a dedicated international business unit. Requires extensive KYC and often an in-person meeting.
Unlimit
Remote-friendlyDigital banking provider tailored for non-resident and global-first companies needing UK financial infrastructure.
Payment Gateways
Stripe, PayPal, Square, GoCardless, Adyen, Paddle
Currency
GBP
Multi-Currency: Supported
Account Opening
Opening a traditional bank account for a UK branch can take 4 to 12 weeks due to strict KYC and AML checks on the overseas parent company. Fintechs like Wise or Revolut Business offer faster, remote-friendly alternatives for non-resident directors.
Practical Information
Timezone
UTC+0 to UTC+1
Business Language
English
Legal System
Common Law
Ease of Doing Business
#8
IP Protection
Strong intellectual property protection through the UK Intellectual Property Office (UK IPO). Trademarks, patents, and copyrights are strictly enforced under UK law.
Double Tax Treaties
136 countries
Notable treaties: United States, Germany, France, Australia, Canada, Japan, Ireland, Netherlands
Visa & Residency Options
UK Expansion Worker Visa
Allows overseas companies to send senior managers or specialist employees to the UK to set up their first UK branch or subsidiary.
Innovator Founder Visa
For entrepreneurs seeking to establish an innovative, viable, and scalable business in the UK. Requires endorsement from an approved body.
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Changelog
Data updates and changes on this page
Updated Companies House registration fee to £124 and annual accounts digital filing fee to £50, effective February 2026.
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