On 18 November 2025, in cooperation with SPIRIT Slovenia, the Ministry of the Economy, Tourism and Sport, and A Tax International, we organised a webinar on how to enter the UK market. Participants learned more about regulatory and tax requirements, as well as gained practical advice on business culture in the United Kingdom. The webinar was moderated by Žiga Fišer from the British-Slovenian Chamber of Commerce.

Legal and tax aspects of entering the UK market

Azra Begič Milanez, Partner at A Tax International, opened the session by outlining the key steps in establishing a business presence in the United Kingdom and highlighting the most common pitfalls Slovenian companies face when expanding there.

She stressed that even hiring an employee in the UK can already indicate the creation of a permanent establishment, which has important tax and administrative implications. Companies typically choose between setting up a branch or a limited company in the UK, with each option carrying its own advantages and consequences for the balance sheet, taxation and VAT registration.

In the case of a branch, the business results are included in the balance sheet of the parent company in Slovenia, which can affect the size and key indicators of the group back home. A company in the UK, on the other hand, has its own balance sheet and separate tax treatment. The choice of structure also determines the obligations and opportunities related to VAT registration, the use of transfer pricing and the taxation of dividends or profits.

She also touched on:

• the process of setting up a legal entity (registration with Companies House, registered office in the UK, opening a bank account, establishing an accounting system),
• mandatory registration for corporation tax, the payroll system and pension scheme when employing staff in the UK,
• thresholds and rules for VAT registration and reporting obligations,
• and regular obligations related to the filing of annual accounts, tax returns and other reports.

The right structure and proper planning reduce the risk of double taxation and open the door to certain incentives and more favourable conditions on the market. Having a presence in the UK is therefore not merely a formal question. A local legal entity can significantly enhance a company’s credibility in the eyes of local partners and is often a prerequisite for better terms of cooperation, access to subsidies and other support mechanisms, as well as for taking advantage of the UK's favourable bilateral agreements with other markets (for example Japan, Australia, New Zealand and Canada).

Business culture, communication and trust in the UK market

In the second part of the webinar, Maruša Uranjek, who has lived and worked in the UK for seven years and for the past two years has led Trimo’s UK office, offered a first-hand perspective on how British business culture shapes companies’ success in the market. She explained that the UK market is large, stable and developed, with high purchasing power, and at the same time remains open to European companies. This makes it an attractive environment for Slovenian exporters.

She emphasised that British partners expect the "homework" to be done before the first contact. A company needs to understand its competition, standards, regulation and market segments, and clearly define the specific added value its product or solution brings. They are interested in measurable strengths, such as technology, certifications, references, capacity, quality, and reliability of supply chain.

For newcomers to the market it is essential to outperform the competition: to respond faster, be better organised and more professional, and to approach the market in a personalised and tailored way. Generic emails do not work. What matters is reaching the right decision-makers and following up in a timely manner, otherwise the market quickly forgets you.

Maruša also highlighted the specificities of British business communication. The British tend to be less direct, communication is diplomatic and much has to be read between the lines, while small talk is often an important part of a meeting. It is a distinctly "no surprises" culture: they dislike surprises and last-minute changes, and promises made are expected to be kept. Trust is built gradually, but once established it can lead to very loyal and long-term partnerships. A local presence and team in the UK are not an absolute requirement, yet they represent a significant advantage, as they reduce perceived risk for partners and make it easier to manage local processes.