AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
A Nigerian company can own a UK private limited company outright: you register it online at Companies House for £100, with a UK registered office and directors who have verified their identity. Because an unlisted Nigerian parent is not a 'relevant legal entity' under UK rules, the subsidiary's PSC register cannot simply name the parent; it must look through to the individuals who control it.
Nigerian firms expand to the UK for many reasons: to serve diaspora customers, to bill UK clients in pounds, to hold intellectual property or to be closer to investors. The two usual structures are a UK subsidiary, which is a separate UK company owned by the Nigerian parent, and a UK establishment, which registers the Nigerian company itself as an overseas company with a UK branch. This guide covers the subsidiary; the branch route is in registering a Nigerian company's UK branch.
Subsidiary or branch?
| UK subsidiary | UK establishment (branch) | |
|---|---|---|
| Legal person | New UK company, separate from the parent | The Nigerian company itself |
| Liability | Limited to the subsidiary's assets | The parent is directly liable |
| Companies House filing | IN01 online, £100 | OS IN01, £124, with certified constitution and translation |
| Accounts | UK company accounts | Parent's accounts, as required |
| UK tax | Corporation Tax on its own profits | Corporation Tax on profits of the UK branch |
Many groups choose a subsidiary because UK clients, banks and landlords are used to dealing with UK companies, and because liability stays inside the UK entity.
Registering the subsidiary
GOV.UK says registering a company online costs £100, usually completes within 24 hours, and needs a registered office address, at least one SIC code, a statement of capital and details of the people with significant control. The Nigerian parent is the subscriber and shareholder. You will need:
- A company name that is not the same as an existing one and does not use a sensitive word without permission; see UK company name rules.
- A UK registered office: an appropriate address where documents reach the company and delivery can be acknowledged, not a PO box. A formation agent or accountant can provide one; see registered office address services.
- At least one individual director. Directors do not have to live in the UK, but each must verify their identity.
- A board resolution of the parent approving the subscription and naming who signs for it.
- Articles of association: the model articles work for most wholly owned subsidiaries.
Identity verification for directors
Identity verification has been a legal requirement since 18 November 2025. GOV.UK says each director's Companies House personal code is given as part of the registration filing. A director can verify with GOV.UK One Login or through an authorised corporate service provider, which matters for directors whose documents One Login cannot read. GOV.UK says verification for corporate directors will come later, so appoint individuals. See identity verification for Nigerian directors.
The PSC register: looking through the parent
Every UK company keeps a register of people with significant control: anyone with more than 25% of shares or votes, the right to appoint or remove most directors, or significant influence or control. When the shareholder is a company, Companies House guidance (version 5, November 2025) says it can be registered as a relevant legal entity only if it is itself required to report PSCs to Companies House or has voting shares admitted to trading on a regulated market in the UK or EEA.
An unlisted Nigerian company meets neither test. The guidance says that when a legal entity is not an RLE it cannot be registered, and gives the example of a foreign company that is the parent of a UK company. You must look at who owns and controls the Nigerian parent and record the individuals, or a UK or EEA-listed entity, with a majority stake. If nobody meets that test, you report that fact to Companies House.
Example
Example only: Adaeze Foods Ltd (Lagos) owns 100% of Adaeze Foods UK Ltd. Adaeze Foods Ltd is owned 60% by its founder and 40% by a Nigerian investment company. The founder holds a majority stake in the parent, so the founder is recorded as a PSC of the UK subsidiary. The 40% investor has no majority stake and is not recorded on that basis.
PSCs must also verify their identity. GOV.UK says a PSC can give their personal code when first added to the register or within 14 days, and changes to PSC information must be reported within 14 days.
After registration
- Register the subsidiary for Corporation Tax.
- Open a UK business bank account; see bank accounts for non-resident directors.
- Put an intercompany agreement in place for any services, staff or loans between parent and subsidiary, priced as independent parties would price them.
- Record the subsidiary in the parent's own filings in Nigeria, including the parent's PSC disclosures at CAC; see PSC disclosure rules at CAC.
- Ask your Nigerian bank how the capital sent to fund the subsidiary should be documented under CBN foreign exchange rules.
PwC's Nigeria tax summary notes that Nigeria has controlled foreign company rules, so a Nigerian parent should take advice on how the subsidiary's retained profits are treated at home.
Where Pryme fits
A group with entities in both countries can hold each one's money separately. A Pryme Business Account can be opened from any country and holds GBP, NGN, USD and EUR, and multiple entities can be run side by side. This page is general information, not legal or tax advice.
Questions people ask
Can a Nigerian company own a UK company?
Yes. A Nigerian company can be the sole shareholder of a UK private limited company, registered online at Companies House for £100.
Who goes on the PSC register if the parent is Nigerian?
Companies House guidance says an unlisted foreign parent is not a relevant legal entity, so you look through it and record the individuals with a majority stake in it.
Can the directors of a UK subsidiary live in Nigeria?
Yes, but each must verify their identity for Companies House and give a personal code at registration. Corporate directors cannot yet verify, so appoint individuals.
Is a branch cheaper than a subsidiary?
The Companies House fee for registering a UK establishment is £124 against £100 online for a new company, and a branch needs certified constitutional documents. The bigger difference is liability and tax, not the fee.
Sources
- GOV.UK: Set up a private limited company - Register your company · accessed Oct 2026
- GOV.UK: People with significant control (PSCs) · accessed Oct 2026
- Companies House: Register of People with Significant Control guidance, version 5 · accessed Oct 2026
- GOV.UK: When you need to verify your identity for Companies House · accessed Oct 2026
- Changes to UK company law: Identity verification · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria - Corporate residence · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.