Q&As

When a registered UK establishment of a foreign company enters into a contract, is it the overseas company or the UK establishment that is named on the contract?

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Published on LexisPSL on 23/02/2018

The following Corporate Q&A provides comprehensive and up to date legal information covering:

  • When a registered UK establishment of a foreign company enters into a contract, is it the overseas company or the UK establishment that is named on the contract?

This question implies that the UK establishment has a different name from the overseas company. A UK establishment of an overseas company is permitted to have a different name from the overseas company, and if it does, it is treated for all purposes of the law applying in the UK as the company's corporate name

It is commonplace for a UK registered establishment of an overseas company to have some authority to carry on business without reference to the overseas company, perhaps including being authorised to enter into contracts. In fact, having some autonomy from the overseas company is one characteristic that can lead to the requirement for the overseas company to be registered as a UK establishment in the first place.

However, a precise answer to the question of which name is entered on the contract cannot be given here. The question hinges upon the specific circumstances and the laws of the territory in which the overseas company is incorporated. Whether a UK establishment can enter into a contract in its own name will depend on the extent of the authority granted to that UK establishment by the ove

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