Country guide · Free to read
Setting Up in the UK from India
India was the second-largest source of foreign direct investment into the UK in 2024–25, and the fastest-growing segment of that investment is coming from tech and services businesses looking for a credible European base. For Indian founders, the UK offers English-language operations, a familiar common law framework, and a market that takes a UK-registered company seriously as a matter of course.
Why India businesses choose the UK
- India was the second largest source market for FDI into the UK in the 2024–25 financial year, behind only the United States
- Shared common law tradition and English-language business operations remove two of the biggest friction points that slow down expansion elsewhere
- A UK entity gives Indian companies immediate credibility with European and US clients who may be cautious about contracting directly with an overseas entity
Indian Private Limited Company vs UK Limited Company
| Indian Private Limited Company | UK Limited Company | |
|---|---|---|
| Filing body | Registrar of Companies (RoC), MCA | Companies House |
| Payroll/tax authority | Income Tax Department | HMRC |
| Foreign investment reporting | RBI / FEMA reporting required for outbound investment | Standard Companies House filings |
| Incorporation timeline | Several weeks typically | 24–48 hours once documents are ready |
| Annual filing | RoC annual return + audited accounts | Confirmation statement + accounts |
If your Indian company is setting up a UK subsidiary, the investment itself will typically need to be reported on the Indian side under RBI/FEMA rules for outbound direct investment — this is separate from anything we handle on the UK side, so it's worth coordinating with your Indian company secretary or chartered accountant alongside the UK setup, not after it. Compare subsidiary vs branch in detail →
The setup process, step by step
- 01Company registration — UK incorporation with Companies House, typically 24–48 hours once documents are ready Read our Company Registration Checklist guide →
- 02Registered office — required by UK law, and a virtual office solves this if you don't yet have UK premises
- 03PAYE and HMRC registration — required once you have UK employees, including any staff relocated from India Read our How to Register as a UK Employer (PAYE) When You Do Not Have a UK Address guide →
- 04UK business bank account — often the slowest step for Indian-owned entities, since UK banks apply thorough KYC checks to overseas ownership structures; starting this process early is worth it Read our Business Bank Account for Non-Residents: What Actually Works guide →
- 05Ongoing compliance — UK filing deadlines run independently of RoC deadlines in India, and both need tracking
Common questions from India founders
Do I need RBI approval to set up a UK subsidiary?
Outbound investment from an Indian company generally needs to be reported under FEMA's overseas direct investment rules — this runs alongside the UK incorporation process, and we'd recommend coordinating with your Indian CA or company secretary at the same time you start the UK setup.
How long does it take to open a UK bank account for an Indian-owned company?
This is typically the longest step in the process for Indian founders — UK banks apply detailed KYC checks to overseas ownership, so starting early and having your documentation ready in advance makes a real difference.
Can I relocate staff from India to work in the UK entity?
Yes, though this generally requires a UK sponsor licence and the relevant visa route — a separate process from company registration itself, and one we can point you toward the right specialist for.
Should I set up a subsidiary or a branch?
Most Indian companies choose a subsidiary, partly because it's the more straightforward option for FEMA reporting purposes and partly because it cleanly separates UK trading activity and tax liability from the Indian parent.
Related country guides