International expansion is rarely just a matter of registering a company in another country. The commercial opportunity has to be considered alongside corporate structure, tax, employment, immigration, intellectual property, contracts, data protection and local regulatory requirements.
The scale of the opportunity is significant. The UK had an estimated 5.7 million private-sector businesses at the start of 2025, with small and medium-sized enterprises representing 99.85 per cent of the business population.[1] In Ireland, the business economy contained 401,359 active enterprises in 2023, of which 99.8 per cent were SMEs.[2] In Hungary, the Central Statistical Office recorded 825,421 active enterprises in December 2024.[3]
For a growing company, the right question is therefore not simply “Where should we incorporate?” but “What structure will support the next stage of the business?”
The International Expansion Checklist
1. Commercial Strategy
Before entering the UK, Irish or Hungarian market, establish:
* target customers and market size;
* the competitor landscape;
* the pricing and distribution model;
* local partners or suppliers; and
* expected investment and operating costs.
Department for Business and Trade, Business Population Estimates for the UK and Regions 2025: Statistical Release (DBT, 2 October 2025) <https://www.gov.uk/government/statistics/business-population-estimates-2025/business-population-estimates-for-the-uk-and-regions-2025-statistical-release> accessed 20 August 2026.
Central Statistics Office, Business in Ireland 2023: Insights on the Lifecycle of Businesses (CSO, 15 December 2025) <https://www.cso.ie/en/releasesandpublications/ep/p-biiilb/businessinireland2023-insightsonthelifecycleofbusinesses/> accessed 20 August 2026.
Hungarian Central Statistical Office, ‘Table 9.2.1.14: Number of Active Enterprises per Month by Staff Categories, Legal Unit Level’ (KSH) <https://www.ksh.hu/stadat_files/gsz/en/gsz0083.html> accessed 20 August 2026.
2. Corporate Structure
Consider whether you require a subsidiary, a branch, a locally incorporated company or another operating structure. Review ownership, director responsibilities, shareholder arrangements and the relationship between the parent and the overseas entity.
3. Legal and Regulatory Review
Identify the laws applying to your sector before committing to market entry. These may include company law, licensing, consumer protection, competition rules, employment legislation and sector-specific regulation.
4. Tax and Finance
Map corporation tax, VAT, payroll, withholding taxes and any permanent-establishment risk. Cross-border transactions should also be reviewed for transfer-pricing and reporting implications.
5. Employment and Immigration
If employees or founders will relocate, assess the relevant immigration route, right-to-work requirements, employment contracts, payroll obligations and local employment protections. Ireland and Hungary are both EU and EEA member states, so free movement rules apply to EEA nationals moving between them; UK nationals generally require permission to work in either, and EEA nationals generally require permission to work in the UK.
6. Intellectual Property and Data
Check whether trade marks, patents and other intellectual property rights require territorial protection: UK rights and EU rights have been separate since the end of the Brexit transition period, so a single filing will not cover both. For personal data, assess the applicable UK and EU data protection regimes before transferring information internationally.[4] The UK regime was amended, but not replaced, by the Data (Use and Access) Act 2025, whose data protection provisions are now in force and which reworded the test applied to transfers of personal data outside the UK.[5]
7. Governance and Compliance
Set clear reporting lines between the parent and the overseas entity. Maintain statutory records, board approvals, beneficial ownership information and ongoing filing obligations.
What to Consider by Location
* United Kingdom. Review Companies House requirements, corporate structure, tax, employment, data protection and sector regulation. Note that identity verification at Companies House became mandatory on 18 November 2025 for newly appointed directors and people with significant control, with existing directors required to supply a verified personal code with the company’s first confirmation statement filed after that date.[6]
* Scotland. Company law is reserved to the UK Parliament, so a company incorporated in Scotland is registered at Companies House and governed by the Companies Act 2006 in the same way as one incorporated in England and Wales.[7] Scotland is nonetheless a separate legal jurisdiction with its own courts and its own law of property, contract, security and civil procedure. Commercial leases, security over assets, employment tribunal practice and dispute resolution should all be considered on a Scottish-law basis where relevant.
[1] Data Protection Act 2018; Retained Regulation (EU) 2016/679 (UK GDPR); Data (Use and Access) Act 2025
[1]Information Commissioner’s Office, ‘The Data (Use and Access) Act 2025: What Does It Mean for Organisations?’ (ICO) <https://ico.org.uk/about-the-ico/what-we-do/legislation-we-cover/data-use-and-access-act-2025/the-data-use-and-access-act-2025-what-does-it-mean-for-organisations/> accessed 20 August 2026.
[1] Economic Crime and Corporate Transparency Act 2023, pt 1; Companies House, ‘Verifying Your Identity for Companies House with GOV.UK One Login’ (Companies House Blog, 19 November 2025) <https://companieshouse.blog.gov.uk/2025/11/19/verifying-your-identity-for-companies-house-with-gov-uk-one-login/> accessed 20 August 2026.
[1] Companies Act 2006; Economic Crime and Corporate Transparency Act 2023.
* Dublin, Ireland. Consider Irish company law under the Companies Act 2014, Revenue requirements, VAT, employment rules and EU regulatory obligations.[8] Ireland’s digital business environment is also developing quickly: more than 20 per cent of Irish enterprises used artificial intelligence in 2025, up from over 15 per cent in 2024, and 58 per cent of large enterprises did so.[9]
* Budapest, Hungary. Assess Hungarian company law, which is contained principally in Book Three of Act V of 2013 on the Civil Code, together with tax, employment and EU regulatory requirements.[10] Budapest had 414,288 registered enterprises in December 2024, which gives some indication of the scale of its commercial ecosystem.[11]
International expansion should be treated as a governance and commercial planning exercise, not simply an incorporation project. An expansion checklist should be completed before significant capital is committed, long-term contracts are signed or key personnel are relocated.
The strongest approach is to work through market, then structure, regulation, tax, people, intellectual property, data and governance in turn, and then to establish which of those issues require local professional advice.
This article is general information about international expansion and is not legal, tax or immigration advice. Specific advice should be taken in each relevant jurisdiction.
Table of Legislation
United Kingdom
Companies Act 2006
Data Protection Act 2018
Economic Crime and Corporate Transparency Act 2023
Data (Use and Access) Act 2025
Retained Regulation (EU) 2016/679 (UK GDPR)
Ireland
Companies Act 2014
[1] Companies Act 2014 (Ireland).
[1] Central Statistics Office, Information Society Statistics: Enterprises 2025 (CSO, 6 February 2026) <https://www.cso.ie/en/releasesandpublications/ep/p-isse/informationsocietystatistics-enterprises2025> accessed 20 August 2026. The comparable figures for 2024 were 15.2 per cent of all enterprises and 51.2 per cent of large enterprises: Central Statistics Office, Information Society Statistics: Enterprises 2024 (CSO, 14 February 2025) <https://www.cso.ie/en/releasesandpublications/ep/p-isse/informationsocietystatistics-enterprises2024> accessed 20 August 2026.
[1]Act V of 2013 on the Civil Code (Hungary), book 3.
[1] Hungarian Central Statistical Office, ‘Table 9.2.2.1: Number of Registered Enterprises by County and Region, Monthly’ (KSH) <https://www.ksh.hu/stadat_files/gsz/en/gsz0063.html> accessed 20 August 2026.
Hungary
Act V of 2013 on the Civil Code
Bibliography
Central Statistics Office, Business in Ireland 2023: Insights on the Lifecycle of Businesses (CSO, 15 December 2025) <https://www.cso.ie/en/releasesandpublications/ep/p-biiilb/businessinireland2023-insightsonthelifecycleofbusinesses/> accessed 20 August 2026
Central Statistics Office, Information Society Statistics: Enterprises 2024 (CSO, 14 February 2025) <https://www.cso.ie/en/releasesandpublications/ep/p-isseDBT, 2 October 2025/informationsocietystatistics-enterprises2024> accessed 20 August 2026
Central Statistics Office, Information Society Statistics: Enterprises 2025 (CSO, 6 February 2026) <https://www.cso.ie/en/releasesandpublications/ep/p-isse/informationsocietystatistics-enterprises2025> accessed 20 August 2026
Companies House, ‘Verifying Your Identity for Companies House with GOV.UK One Login’ (Companies House Blog, 19 November 2025) <https://companieshouse.blog.gov.uk/2025/11/19/verifying-your-identity-for-companies-house-with-gov-uk-one-login/> accessed 20 August 2026
Department for Business and Trade, Business Population Estimates for the UK and Regions 2025: Statistical Release (DBT, 2 October 2025) <https://www.gov.uk/government/statistics/business-population-estimates-2025/business-population-estimates-for-the-uk-and-regions-2025-statistical-release> accessed 20 August 2026
Hungarian Central Statistical Office, ‘Table 9.2.1.14: Number of Active Enterprises per Month by Staff Categories, Legal Unit Level’ (KSH) <https://www.ksh.hu/stadat_files/gsz/en/gsz0083.html> accessed 20 August 2026
Information Commissioner’s Office, ‘The Data (Use and Access) Act 2025: What Does It Mean for Organisations?’ (ICO) <https://ico.org.uk/about-the-ico/what-we-do/legislation-we-cover/data-use-and-access-act-2025/the-data-use-and-access-act-2025-what-does-it-mean-for-organisations/> accessed 20 August 2026
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