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Establish a Branch or Place of Business in the United Kingdom

. Many organisations want to expand into the UK but for many reasons may not want to establish an incorporated entity in the United Kingdom. Instead they may wish to register a branch or place of business as an overseas company. Some companies receive tax breaks and government development grants by continuing to be incorporated in their home country while they attempt to establish a UK operation. What is a branch? A branch is a part of a company that is organised so as to conduct business on behalf of a company as opposed to carrying on business which is merely ancillary or incidental to the company's business as a whole. In other words, a person will be able to deal direct with a branch of the foreign company in Great Britain rather than with that company in its country of incorporation. What is a place of business? A place of business is premises where there is a physical or visible indication that the company may be contacted there, or a particular location where the company habitually conducts business from, even if there is no physical sign of the company's connection with it.

However, as the business carried on at that place is only ancillary or incidental to the company's business as a whole, it does not amount to a branch. Such activities might include internal computer processing, warehousing or simply a representative office. This website aim to help you understand some of the many things you need to think about when you are starting and running a business. You can now establish your branch or place of business online using our company registration agent, Coddan CPM - an online business formation agent in the UK. Our company is designed to provide information and guidance in starting and developing foreign business within the United Kingdom. Allow us to help you establish your branch and get it running, to select the best business for incorporation, or to register your branch with the Companies House. We supply expert advice in navigating English legal and business systems helping you set up in England, Scotland, Northern Ireland and/or the Republic of Ireland. If you have an idea for a business, we can also assist you in start-up your new business directly in the UK from the ground up. In the UK, you must register your business, which we can do for you. Let us know how we can help.

Choose one of the following packages that will best serve you:
 This package is designed for businesses who wish to form a branch of their foreign company in the UK, and includes:
 The examination of your application and documents for compliance with UK law
 The preparation of Form BR1 (if the company has an authorised representative in the UK)
 The submission of Form BR1 and supporting documents which detail the executive officers of the company. (Only one authorised representative is required to establish a branch; this person need not be a director or secretary)
 The registration of a branch within 3-4 weeks
 The payment of UK legal and initiation fees
 
 The following documents will be posted to you (these documents will be sent via Royal Mail):
 A laminated copy of the Certificate of Registration
Branch Application
£ 150.00
Click here to see all packages
(click here for other packages)

Company Formation Home Page  >>  UK Company With Bearer Shares >>  Register a Branch in the UK

ESTABLISHING A BRANCH OR PLACE OF BUSINESS IN ENGLAND, SCOTLAND AND WALES: SETTING UP A NEW BRANCH IN THE UNITED KINGDOM

Many organisations want to expand into the UK but for many reasons may not want to establish an incorporated entity in the UK. Instead they may wish to register a branch or place of business as an oversea company. Some companies receive tax breaks and government development grants by continuing to be incorporated in their home country while they attempt to establish a UK operation.

The fact that a foriegn company is carrying on business in Great Britain does not automatically mean that the company has to register with Companies House. However, the Companies Act 1985 requires every oversea company which establishes some type of place of business in Great Britain to deliver certain documents to Companies House. To this end, a "place of business" is a premises where there is a physical or visible indication that the company may be contacted there. An oversea company also has to register if it habitually conducts business from a particular location in Great Britain even if there is no physical sign of the company's connection with it. We have a wealth of experience in both forming and structuring branches and can advise you on whether this type of vehicle is suitable for your needs.

At present there are a number of different legal bases for UK businesses: as a sole trader, via a partnership, through a Private Limited Liability Company and via a Limited Liability Partnership (LLP). It is also possible to set up in business as a Public Limited Company (PLC) and as a Co-operative, but only very few start ups meet the criteria to use either of these. There are basically two ways of obtaining a Limited Liability Company through which to trade. Acquiring a company which has already been incorporated but is not trading (known as "dormant" and commonly referred to as buying a company "off the shelf"), or alternatively setting-up a new limited company from scratch.
Finding and Using Information on This Page:  Overseas Companies in Great Britain: Introduction | What is a Branch? | What is a Place of Business?  | Overseas Companies Background | Scale and Effect | Options to be Registered in the UK | Benefits or Risks of Each Option to Incorporate in England | Preferred Option to Incorporate | Assessing the Costs | Branch Registration, Filing & Disclosure | Place of Business Registration, Filing & Disclosure | Provisions Affecting Overseas Companies Generally | 

Starting a new company is not particularly difficult, although two legal documents, the Articles and Memorandum of Association (the company's constitution), will need to be prepared and copies submitted with the application to the Registrar of Companies at Companies House. Many small businesses choose to use the services of a formations agent to undertake all of these formalities on their behalf. Whether you are setting up a business, start your own business or continuing to grow a company, we can help.

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Many organisations want to expand into the UK but for many reasons may not want to establish an incorporated entity in the UK. Instead they may wish to to register a branch or place of business as an oversea company. Some companies receive tax breaks and government development grants by continuing to be incorporated in their home country while they attempt to to establish a UK operation. The fact that a foreign company is carrying on business in Great Britain does not automatically mean that the company has to register with Companies House. However, the Companies Act 1985 requires every oversea company which establishes some type of place of business in Great Britain to deliver certain documents to Companies House. To this end, a place of business is a premise where there is a physical or visible indication that the company may be contacted there. An oversea company also has to register if it habitually conducts business from a particular location in Great Britain even if there is no physical sign of the company's connection with it.
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Live Help Live Help:
Live Help is a real time "chat" feature which enables you to interact with a customer service representative without a phone call. Get answers to your questions while using our website. Clicking the "Live Help" button will start an on-line session with one of our representatives. Live Help is currently available during normal business hours. Outside of the above opening hours, our business center will be closed. When you click on the button, you will see an e-mail form that will allow you to send us a mail with your questions. Live Help is free! There are no hidden fees. We offer the service as a courtesy to our website visitors.

Dear visitors, while having a chat session with a customer, we are frequently requested to give a piece of advice on tax planning or business structuring. We would like to inform you that it is against our principles to provide online advice pertaining to these issues. The points that may be covered during a session include service description, package or service price, navigation at our website, ways of making an order, methods of payment etc. Yet, if you wish us to provide you with advice on tax or business structuring, you should be aware that this service is chargeable.

We accept phone orders during normal business hours. Credit cards are the preferred method of payment; we accept VISA, MasterCard and Delta. We can accept payment in UK Pounds Sterling, US Dollars, Euros, Australian Dollars and Canadian Dollars. If you call and receive voicemail, just leave your name and number, as clearly and as possible, and we will call you back as soon as possible.

Monday - Friday: 9:30am to 17:30pm
Saturday: (offices are closed)
Sunday: (offices are closed)
Holidays: (offices are closed on all recognized UK holidays).

Money and Payment Policy: 
Coddan accepts all major currencies. We accept Visa, Visa Electron, Visa Purchasing, JCB, MasterCard, Solo, Switch and Delta. We do NOT charge "surcharges" for credit card transactions. If you do not feel comfortable transmitting your credit card number and other information on the Internet, we suggest you place an order online, choose "Credit Card via Phone" as the payment method, and then phone in to give us your credit card number over the phone. We will charge your credit card manually. Pre-payment with cashier's check or money order is accepted. We accept wire-transfer from anywhere. After you place your order, details about the wire-transfer process will be e-mailed to you on the second e-mail notification. If you missed that e-mail, please call our toll-free number that is given on the order confirmation.

If you have any questions about the companies or partnerships incorporation then please E-Mail or call us: 0800 081 1510 or +44 (0) 207 637 3881, fax: +44 20 7681 3318.
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OVERSEA COMPANIES IN GREAT BRITAIN. INTRODUCTION

Many organisations want to expand into the UK but for many reasons may not want to establish an incorporated entity in the UK. The UK has an open, transparent and business-friendly system to encourage the formation of new businesses. There are more than 2 million registered companies in the UK, with over 330,000 new registrations each year. No permission is required to establish a business presence in the UK, although there are regulations on the use of business names and certain business sectors which may require licences or authorisation (such as finance, defence and oil exploration).

The majority of foreign investors will establish a UK registered company when setting up in the UK. There are four different types of UK registered company:

  1. Private company limited by shares ("Ltd") - the members' liability is limited to the amount unpaid on shares they hold.
  2. Private company limited by guarantee - the members' liability is limited to the amount they have agreed to contribute to the company's assets if it is wound up.
  3. Private unlimited company - there is no limit to the members' liability.
  4. Public company limited by shares ("Plc") - the company's shares are offered for sale to the general public through a stock exchange and the members' liability is limited to the amount unpaid on shares held by them.

The vast majority of foreign businesses are established as a company limited by shares, either as a private limited company or as a public limited company. Most foreign companies set up a private limited company that is a subsidiary of the overseas company. Instead of registering a UK company, foreign businesses can establish a presence in the UK through the following:

  1. A branch
  2. A place of business
  3. A partnership
  4. A limited partnership
  5. A limited liability partnership
  6. A joint venture
  7. A European public limited company (SE)

Instead they may wish to register a branch or place of business as an oversea company. Some companies receive tax breaks and government development grants by continuing to be incorporated in their home country while they attempt to establish a UK operation. The fact that a foreign company is carrying on business in Great Britain does not automatically mean that the company has to register with Companies House.

However, the Companies Act 1985 requires every oversea company which establishes some type of place of business in Great Britain to deliver certain documents to Companies House. To this end, a "place of business" is a premise where there is a physical or visible indication that the company may be contacted there. An oversea company also has to register if it habitually conducts business from a particular location in Great Britain even if there is no physical sign of the company's connection with it.

It has long been a requirement that "oversea companies" establishing a "place of business in Great Britain" have to comply with certain registration requirements at the companies' registry either in England and Wales or in Scotland. Since 1993, there has been a separate set of provisions which apply where an oversea company opens a "branch" in Great Britain (i.e. England and Wales and Scotland).


Establishing a Branch in England from only £150.00! All Inclusive UK Branch Registration Service!
Coddan's new service is designed to let you establish a UK branch of your overseas company. By completing our online branch registration form, you can effortlessly initiate the process which will see your new UK branch registered in as little as 3 to 4 weeks. As part of this package, we are offering free advice on the naming of your branch and a free name availability service.
Upon formation of your branch, you will receive a laminated copy of the Certificate of Registration.


Call any one of our offices:

Monday - Friday: 9:30am to 17:30pm


United Kingdom Contact +44 (0) 207.637.3881

United Kingdom Contact +44 (0) 800.081.1510

Scotland Contact +44 (0) 141.530.8188

Northern Ireland Contact +44 (0) 289.099.8744

E-Mail Contact info@ukincorp.co.uk

In order to determine, therefore, which set of regulations apply to a foreign company setting up business in Great Britain, it is now necessary to consider whether the company has opened a branch, or established a place of business. (Note that where a foreign company has created a presence in some way which is neither a branch nor a place of business, no registration requirements will apply).

This section sets out to explain the distinction between a branch and place of business and to provide an outline of the registration and related requirements for all oversea companies that establish such place of business or branch in Great Britain. However, this is only an outline guide, and further legal advice should be sought where necessary.

NB: In March 1998 the Department of Trade and Industry launched a review of the framework of company law with a view to developing a simple, modern and cost effective infrastructure for carrying out business activity. An independent steering group was formed to oversee the management of the review and, following an extensive process of consultation, presented its final report on 26 July 2001.

The proposals cover a whole raft of areas, including company reporting and audit, directors' duties, obligations on small and private companies, and institutional arrangements. One of the recommendations made is for the law on oversea companies to be simplified, in particular replacing the two overlapping regimes with a single set of procedures and updating disclosure requirements. The first White Paper which the government has produced as a result of this process endorses the recommendations with respect to oversea companies, although no date has yet been set for legislation to be passed.

WHAT IS A BRANCH?

A branch is a part of a company that is organised so as to conduct business on behalf of a company as opposed to carrying on business which is merely ancillary or incidental to the company's business as a whole. In other words a person will be able to deal direct with a branch of the foreign company in Great Britain rather than with that company in its country of incorporation. Other types of commercial enterprises (for instance partnerships and unincorporated bodies (cannot register in Great Britain as a branch).
You May Use This Link to Apply for a Branch Registration in the UK:  Branch Registration Application Form 

WHAT IS A PLACE OF BUSINESS?

A place of business is premises where there is a physical or visible indication that the company may be contacted there, or a particular location where the company habitually conducts business from, even if there is no physical sign of the company's connection with it. However, as the business carried on at that place is only ancillary or incidental to the company's business as a whole, it does not amount to a branch.

Such activities might include internal computer processing, warehousing or simply a representative office. Note that where there is no physical location in Great Britain, registration is not required. For example, an independent agent who conducts business on behalf of the company is not a place of business of an oversea company. Neither is an occasional location such as a hotel where a director may conduct business during periodic visits to this country.
You May Use This Link to Apply for Establish a Place of Business:  Establish a Place of Business in the UK 

BACKGROUND

Oversea companies which establish a business in Great Britain without incorporating it as a GB company are currently required to register specified company information at Companies House (e.g. details of the company constitution, directors, addresses etc). These registration requirements are designed to provide protection for third parties in Great Britain who have dealings with the business (and hence with the oversea company). For example, creditors and others are able to access information about the company, including its accounts.

The current law is very complex. There are two systems of registration: one based on the requirements of an EC Directive on oversea companies (the 11th Company Law Directive); and an older pre-existing system that had developed separately in Great Britain. The proposal is to introduce a new single system based on the EC Directive and thus to achieve significant simplification of the registration requirements.

The complexity of the current rules makes compliance more difficult, because there is a risk that oversea companies will be unsure which of the two existing regimes they should follow. Increasing the clarity and accessibility of the rules can therefore help raise compliance. It will also enable Companies House and other Government bodies to publicise more effectively the rules which should be followed.

SCALE AND EFFECT

Many oversea companies seeking opportunities in Great Britain set up a GB company and are covered by UK company law in the normal way. However, sometimes an oversea company may choose to establish a business in Great Britain without forming a new company. There are currently around 7,400 registered oversea companies which have chosen this course.

OPTIONS

Three options have been identified for regulating oversea companies which establish a place of business in Great Britain without incorporating it as a GB company:

Option 1: 
To introduce a single "branch" registration regime based on the existing concept of "branches" and the registration requirements set out in the 11th Company Law Directive. ("Branch" implies a more significant presence than a mere place of business).

Option 2: 
To introduce a single "place of business" registration regime based on the existing concept of "place of business" and the registration requirements set out in the 11* Company Law Directive. (A "place of business" means a specified or identifiable place at which the company carries on business which has more than a fleeting character; where there is some visible sign or physical indication that the company has a connection with particular premises. Thus "place of business" encompasses both a branch and a presence less substantial than a branch).

Option 3: 
To maintain the current dual registration regime: one for "branches" (which implements the 11th Company Law Directive); and one for "places of business" which are not branches. The registration requirements are similar, but not identical under the two regimes, and due to the Directive, slightly more information needs to be provided by those oversea companies subject to the "branch" regime.

BENEFITS OR RISKS OF EACH OPTION

Option 1: 
Introducing a single regime based on the existing concept of "branches" would simplify the registration system and be compatible with the Directive. A single registration regime would remove the need for oversea companies to face complex questions on initial registration and subsequently as to whether their activities here amount to those of a branch or a place of business.

It would also remove the need for the current complex transitional provisions which enable oversea companies to transfer from one regime to the other. Under this option, only those companies establishing businesses considered to be "branches" would be required to register. This would reduce the scope of oversea companies required to register information at Companies House - thus only the more substantial presence of a "branch" would have to be registered. This would reduce the information available to third parties, including the Inland Revenue.

Option 2: 
Introducing a single regime based on the existing concept of "place of business" and the registration requirements set out in the Directive would simplify the regime and be compatible with the Directive. The other benefits stated in paragraph 8 apply equally to this option. There is already a major body of British case law on what constitutes an established place of business and it is clear that the concept of established place of business encompasses branches.

This option would therefore simplify the system, without reducing the information which is publicly available, as outlined under Option 1. It would increase slightly the filing requirements for those oversea companies which would currently fall within the "place of business" rather than the "branch" regime.

Option 2: 
Maintaining the current dual registration regimes would not meet the objective of simplifying the rules. Oversea companies would continue to face complex questions on initial registration and subsequently, and the rules themselves would be more complex. Transitional provisions would also continue to be needed to enable oversea companies to transfer from one regime to the other.

PREFERRED OPTION

Only Option 2 meets the objective of reforming the law in a simple and effective way compatible with EC requirements, whilst preserving the amount of information published at Companies House about oversea companies which have established a place of