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Setting Up in the UK from the US
The UK remains the single largest destination for American businesses looking to establish a presence in Europe — sharing a language, a common law tradition, and a business culture that's closer to the US than almost anywhere else on the continent. For US founders and CEOs, that familiarity can be deceptive: the UK's company law, tax registration, and payroll requirements are genuinely different from what you're used to, even when the terminology sounds similar.
Why US businesses choose the UK
- The United States was the single largest source market for foreign direct investment into the UK in the 2024–25 financial year, with 329 projects landing — more than double the next largest source country
- English-language operations from day one, with no translation or localisation overhead
- A common law legal system that will feel structurally familiar to US counsel, even where the specific rules differ
- London's position as a global financial and professional services hub gives US companies immediate access to banking, legal, and investor networks
LLC vs UK Limited Company
| US LLC | UK Limited Company | |
|---|---|---|
| Liability | Limited | Limited |
| Taxation | Pass-through (by default) | Corporation tax at entity level |
| Filing body | State-level Secretary of State | Companies House (national) |
| Ongoing filings | Varies by state | Annual confirmation statement + accounts to Companies House |
| Officer requirement | Managing member(s) | At least one director (can be non-UK resident) |
Most US companies expanding into the UK set up either a UK subsidiary (a new UK Ltd company, majority or wholly owned by the US parent) or register a UK branch (an extension of the US entity itself, not a separate legal person). Which one makes sense depends on your liability preferences, tax position, and how independently the UK operation will run — this is worth a conversation before you file anything. Compare subsidiary vs branch in detail →
The US and UK also have a long-standing double taxation treaty, meaning profits generally aren't taxed twice — but how that applies depends on your structure and where profits are booked.
The setup process, step by step
- 01Company registration — incorporating your UK entity with Companies House, typically completed within 24–48 hours once documentation is ready Read our Company Registration Checklist guide →
- 02Registered office — every UK company needs a UK registered office address; a virtual office solves this if you don't have UK premises yet
- 03PAYE and HMRC registration — required as soon as you have UK employees, including yourself if you're drawing a UK salary 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 US companies, since UK banks have their own KYC requirements for foreign-owned entities Read our Business Bank Account for Non-Residents: What Actually Works guide →
- 05Ongoing compliance — annual accounts, confirmation statements, and corporation tax returns, all with UK-specific deadlines that don't align with the US tax year
Common questions from US founders
Do I need a UK visa to set up a UK company?
No — incorporating a UK company doesn't require you to live in the UK or hold a UK visa. That's only relevant if you or your team plan to relocate.
How long does it take to open a UK business bank account?
This varies, and it's often the single biggest bottleneck for US-owned entities — expect it to take longer than opening a US business account, particularly with traditional high street banks.
Can I run payroll for UK employees from the US?
Not directly through your US payroll provider — UK employees need to be paid through a PAYE-registered UK payroll, with UK-specific deductions for tax, National Insurance, and pension auto-enrolment.
What's the difference between a subsidiary and a branch for tax purposes?
A subsidiary is a separate UK taxpayer; a branch is taxed as an extension of the US parent, with different reporting obligations. This is genuinely worth a proper conversation rather than a default choice.
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