The other is to set up a branch or representative office, which is collectively referred to Permanent Establishment (PE) in the UK. When an overseas company intends to conduct business in the UK, it needs to select a type of business entity based on industry regulations or shareholder preferences. There are many options, this guidance gives an overview on the most common two options. One is to establish a subsidiary, which is a UK limited liability company.

According to Section 1169 of the Companies Act 2006, A UK company is considered dormant if the UK company has been incorporated or has no relevant accounting transactions since the date specified. The Company's annual accounts do not have “significate” transactions (including but not limited to collections and expenses, operating expenses and income such as sales and purchase of goods and assets).

After a company is officially registered in UK, it is required by the UK Companies Act and Customs and Inland Revenue Tax Act to hold an annual general meeting and filing a Statement of Confirmation every year, updating books of accounts, auditing of financial statements (unless exempted) and filing of tax returns.