An overseas company may establish a branch or place of business in the UK to enable it to trade by registering a UK permanent establishment. However, such a UK permanent establishment is not a separate legal entity. There are specific regulations that will impact an overseas company and these should be considered before registering a UK permanent establishment.
A UK "branch" is different from a UK "subsidiary". A subsidiary is a separate legal entity to the overseas parent which, amongst other things, helps to ring-fence its liabilities. In contrast, a branch is an extension of the overseas parent, sharing the same legal entity, with its UK liabilities not ring-fenced and the parent responsible for debts and obligations incurred in the UK.
Deciding which UK presence is most appropriate will vary hugely depending on the overseas parent. There are several considerations ranging from ring-fencing of liabilities, tax, accounting, regulatory burdens and ongoing compliance measures.
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