Overseas companies need a subsidiary or a branch to expand their businesses and enter the new market in the UK. To establish a branch office in the UK, a company needs a staff to manage and operate their branch office. If an overseas company has a UK staff without any legal restrictions to establish and operate the branch office, it does not need to dispatch employee from the parent company. However, it is not easy for overseas companies to recruit staff in the UK who understand their company vision and operation of the business.
It may be easier for the head office to dispatch a representative to establish and operate their branch office. To send a representative from the parent company to the UK, an employee needs a visa to stay and work as a representative of the UK branch. The UK Immigration law states that only one representative can be seconded to the UK to establish and run the overseas branch or subsidiary. Sole Representative is defined as "a person who can establish and operate a branch office in the United Kingdom and act on behalf of an overseas parent company."
A staff should not fall for refusal and the company should also satisfy the following requirements.
- There is no existing legal entity operating as a branch office in the UK.
- The parent company has no wholly owned subsidiary in the UK.
If there is a previously established branch office in the UK or a company that was owned by the parent company, a representative cannot sent. An employee should be transferred and he or she has to apply for an Intra Company Transfer (ICT) to operate the branch.
If there was an agent or broker working for the contract in the UK, it is not a branch office, therefore a representative can be dispatched to establish an independent UK branch or subsidiary.
A representative might be sent to the UK if the previous branch office inevitably closes or is dormant due to the situation of the parent company or the deterioration of market. The company should declare reasons and evidence to close the business and submit the clear business plan for their new branch.
However, a representative cannot be dispatched to restart a dormant company. To send an employee to re-run a dormant company, he or she also must apply for an ICT visa.