Expanding into the UK opens up major opportunities, but it also brings a new layer of regulatory and operational responsibility. From choosing the right legal structure to meeting tax and accounting requirements, foreign-owned businesses must get the basics right to avoid delays, penalties or operational risks along the way.

With deep market knowledge, Michelle Martin, Managing Director of Accace Adept, shares what international companies need to know before entering the UK market and how to stay compliant.  

What should international companies consider first when expanding into the UK?

Michelle: The first and most important step is choosing the right legal structure for your UK presence. Whether you set up a limited company, a UK branch, or an LLP will determine your reporting obligations, tax exposure and administrative responsibilities. It’s not just a legal formality — it impacts how your entire operation will run.

What are the key accounting and reporting requirements for UK entities?

Michelle: All UK companies must prepare annual statutory accounts under UK GAAP (typically FRS 105, FRS 102) or, in some cases, IFRS. These accounts must be filed with Companies House and often differ from group-level reporting. International companies can run into challenges aligning their internal processes with UK statutory standards, so having a local accounting expert who knows it all and handles it all is essential. Not just for a for a smooth start, but also for the long run.

What are the core tax obligations for companies entering the UK market?

Michelle: Businesses Expanding into the UK may also need to register for VAT depending on their turnover. If employing UK-based staff, payroll taxes such as PAYE and National Insurance also apply. The UK tax system is structured and predictable, but the details can be tricky for companies unfamiliar with the UK legislation.

Are there governance or company secretarial duties companies often overlook?

Michelle: Absolutely. UK companies are required to maintain statutory registers, submit annual confirmation statements and disclose Persons with Significant Control (PSC). Even if directors are based abroad, they remain responsible for these tasks. Many international businesses underestimate the administrative side and it causes a lot of difficulties later.

How can international companies align local UK compliance with group-level reporting?

Michelle: Most international businesses need to manage dual reporting: one set for UK statutory purposes and another for internal or HQ reporting. Misalignment between formats, deadlines or assumptions can cause issues. But if these are handled with a local partner, or – even better – one company that operates both globally and also on the UK market, this can be easily sorted. Our UK office has international reach with branches and partners across the globe, so we have great experience handling such cases.

What should businesses look for in a local compliance partner?

Michelle: Look for a partner that understands cross-border operations, not just UK rules. The most effective providers offer a combination of accounting, tax, payroll and corporate services, with experience working alongside global teams. Seamless communication, single point of contact, modern tools and proactive support make a real difference.

What’s the best way to ensure a smooth expansion into the UK?

Michelle: Build a strong compliance foundation early on. That means choosing the right entity, getting the accounting and tax setup right and working with a partner who understands your broader business goals. When compliance is handled properly from the start, it clears the path for confident, sustainable growth.

How Accace Adept supports international companies in the UK

At Accace Adept, we work with international businesses at every stage of their UK journey, from market entry and entity setup to ongoing accounting, tax, payroll and compliance support. Our team combines deep local expertise with experience in cross-border operations, giving you a partner who understands both UK regulations and global expectations.

Whether you’re expanding into the UK for the first time or managing existing operations from abroad, we’re here to provide clear guidance, reliable delivery and solutions tailored to your structure.

Michelle Martin

Managing Director | Accace Adept

Get in touch with us