The UK–India trade agreement (CETA) and a new social security agreement took effect on 15 July 2026. They give Indian IT firms clearer rules for selling services into the UK and make it cheaper to send staff.

Do we need a UK company?

Not always. Many firms sell from India first. A UK company usually makes sense when UK revenue becomes meaningful, UK customers want UK contracting, or you are hiring your first UK salesperson.

Yes. Your Indian company can own 100% of a UK company. UK government clearance applies only when buying a UK company in a sensitive sector.

Can we send money from India?

Yes. Under the automatic route, your Indian company can invest overseas up to 4 times its net worth, with equity, loans and guarantees counted together.

About 3 months from decision to a first working UK team. Allow 4–5 months if staff need sponsored visas.

What tax does the UK company pay?

25% on profits above £250,000 and 19% at £50,000 or below, with marginal relief in between. The limits are divided among associated companies, including the Indian parent, so 25% usually applies sooner.

Can we take money out?

Yes. The UK does not withhold tax on dividends. India taxes dividends from the UK company at normal company rates. Payments for genuine intercompany services must be priced at arm's length.

Can we send Indian staff?

Yes. Staff sent by an Indian employer can remain in Indian social security for up to 60 months, with no UK National Insurance, once they have an EPFO certificate of coverage. They still need a UK work visa.

What are the main risks?

Pricing between your two companies, creating a UK tax bill for the Indian company by accident, the UK company being run from India, UK hiring rules, and UK buyers' data and security demands. All are manageable when planned early.

GreenwolfAdvisorsGlobal Advisory Firm

India → UK · Technology corridor

UK Expansion for Indian Tech and SaaS Companies

A decision guide for Indian technology, SaaS and digital services companies. Information as at 7 October 2026.

Download the PDF guideDownload the full guide (PDF, 15 pages)

The Short Answer

The UK can work for an Indian technology company in three ways. It can be a market, where UK businesses buy what you already sell. It can be a base: UK sales, customer and leadership teams, with engineering and delivery staying in India. It can also be a place to buy customers, by acquiring a UK company that already has them.

This guide covers all three. For the second, it explains the setup most firms choose: a UK company owned by your Indian company. A UK company on paper changes nothing. It helps only when real work, such as selling, account management and senior decisions, sits in the UK.

Who this guide is for: Founders, CEOs and CFOs of Indian IT services, SaaS, product and digital firms that are winning UK customers, hiring their first UK person, raising international money, or considering a UK acquisition.

At a Glance

Why now?: The UK–India trade agreement (CETA) and a new social security agreement took effect on 15 July 2026. They give Indian IT firms clearer rules for selling services into the UK and make it cheaper to send staff.
Do we need a UK company?: Not always. Many firms sell from India first. A UK company usually makes sense when UK revenue becomes meaningful, UK customers want UK contracting, or you are hiring your first UK salesperson.
Can we own 100%?: Yes. Your Indian company can own 100% of a UK company. UK government clearance applies only when buying a UK company in a sensitive sector.
Can we send money from India?: Yes. Under the automatic route, your Indian company can invest overseas up to 4 times its net worth, with equity, loans and guarantees counted together.
How fast?: About 3 months from decision to a first working UK team. Allow 4–5 months if staff need sponsored visas.
What tax does the UK company pay?: 25% on profits above £250,000 and 19% at £50,000 or below, with marginal relief in between. The limits are divided among associated companies, including the Indian parent, so 25% usually applies sooner.
Can we take money out?: Yes. The UK does not withhold tax on dividends. India taxes dividends from the UK company at normal company rates. Payments for genuine intercompany services must be priced at arm's length.
Can we send Indian staff?: Yes. Staff sent by an Indian employer can remain in Indian social security for up to 60 months, with no UK National Insurance, once they have an EPFO certificate of coverage. They still need a UK work visa.
What are the main risks?: Pricing between your two companies, creating a UK tax bill for the Indian company by accident, the UK company being run from India, UK hiring rules, and UK buyers' data and security demands. All are manageable when planned early.

Is This Route Right for You?

It usually fits when

UK customers already ask for you and UK revenue is growing.
Enterprise buyers want UK contracting, support or a senior local contact.
You can name what will sit in the UK and who leads it.
You expect to raise money from international investors.
A UK company with customers fits your plan.

Think twice when

UK revenue is small and arrives without a sales effort. A ₹30 crore company with two £50,000 UK customers rarely needs a UK company.
You want a UK address only. Buyers will see no difference.
No one can lead the UK for the first year.
Your net worth is small compared with your plan, which limits what India allows you to invest overseas.

How Greenwolf Helps

Registering a UK company takes a day. Setting it up so that your UK and Indian companies work as one business, with no tax surprises in either country, is where the real work begins.

01
First, we tell you whether you need a UK company at all.
We look at your UK customers, pipeline, revenue mix and plans. Selling from India, a reseller or a first hire through an employer of record is often the right first step, and we will say so. If a UK company makes sense, we tell you what it should do: sell, manage accounts, lead international sales, or hold an acquisition.
02
We identify the right way into the UK.
Subsidiary, partner, payroll partner or acquisition? London or a lower-cost city closer to your buyers? Which visa route for the people you want to move? We compare the options on your customers, hiring plans, cost and timeline.
03
We structure India and the UK together.
This is where most of the value sits. Who owns the UK company and how it is funded within the overseas investment limits; what India does and what the UK does; how India charges the UK company, using the 15.5% safe harbour in India while satisfying HMRC; who owns the IP; how data moves from the UK to India; and how staff move under the new social security agreement.
04
We execute the setup through one coordinated team.
Companies House registration and identity checks, HMRC registrations, bank account, payroll and VAT, Form FC and overseas investment filings in India, the services agreement and transfer-pricing file, data transfer terms, and the sponsor licence and visas through immigration partners.
05
We keep both sides compliant after launch.
One calendar for both countries: UK accounts, corporation tax, VAT, payroll and confirmation statements; Indian Annual Performance Report, transfer-pricing report and filings. The same team sees both sets of books, so the pricing and the tax positions stay consistent.
06
We help the structure evolve as the business grows.
Buying a UK company (diligence, financing, Indian approvals and UK clearance), raising money from international investors, expanding into Europe or the US from London, and moving cash between the two countries. Greenwolf stays on as your cross-border adviser.

Frequently Asked Questions

The full guide covers set-up routes, costs, tax on both sides, a timeline and the main risks.

Download the PDF guide

How do I set up a UK subsidiary from India?

Decide what will sit in the UK. Register a private limited company with Companies House (£100 online); directors and the parent's named officer verify their identity. File Form FC with your Indian bank when you send the first investment. Then register for UK tax, payroll and, where needed, VAT.

How is a UK company owned by an Indian company taxed?

It pays corporation tax of 19% to 25%. Because the Indian parent counts as an associated company, 25% starts at lower profits. The UK withholds no tax on dividends to India, but India taxes them at normal company rates.

How long does a UK sponsor licence take?

Most are decided in under eight weeks. A £750 priority service aims for 10 working days, with limited places. After approval you assign a certificate of sponsorship and the employee applies for a visa. Allow two to three months in total.

Global Business Mobility or Skilled Worker: which visa should we use?

Use Senior or Specialist Worker to transfer an existing employee: they usually need 12 months with your group, and the floor is £52,500. Use Skilled Worker to hire for the long term: the floor is £41,700 or the going rate, and it can lead to settlement.

Do Indian employees in the UK pay National Insurance after the India–UK agreement?

Not if sent by their Indian employer on or after 15 July 2026 with an EPFO certificate of coverage, for up to 60 months. Staff already in the UK on that date, and anyone on the UK payroll, pay UK National Insurance.

Does the India–UK trade deal remove UK visa requirements?

No. CETA locks in existing access for business visitors and intra-company transfers and adds limited routes in some sectors. It does not change visa fees, salary thresholds or the Immigration Skills Charge.

Start with an assessment

In one conversation we will tell you whether this route makes sense for your business, which setup fits, what it involves and how long it will take.

Email us

UK Expansion for Indian Tech and SaaS Companies

The Short Answer

At a Glance

Is This Route Right for You?

It usually fits when

Think twice when

How Greenwolf Helps

First, we tell you whether you need a UK company at all.

We identify the right way into the UK.

We structure India and the UK together.

We execute the setup through one coordinated team.

We keep both sides compliant after launch.

We help the structure evolve as the business grows.