How to set up UK distribution

This article looks briefly at the options available if you’re a producer or manufacturer thinking about exporting to the UK for the first time.

Direct selling

In an ideal world a producer would be able to sell directly to UK customers without having any presence or establishment in the UK.   If he has a small number of large customers that may be possible, although some customers won’t want to have the responsibilities and liabilities that attach to being the importer for the purposes of UK and EU law.

UK branch or representative office

It is possible to establish a UK branch or representative office, but this is rarely done in practice, usually because of cost and tax implications.

UK subsidiary

Another option is to form a UK limited company which will operate as your subsidiary.  But you would need to be very confident of success to risk taking on the start-up and running costs of a company, its infrastructure and staff from day one.

Appointing a UK agent or distributor

This is the most common way to get started – see appointing an agent or distributor.

Links to further information:

• Why the UK?
• Doing business in the UK
• Business Link — business start up support
• Business Link — finance and grants
• UK Companies House

Last reviewed/revised – 04.11.2011