Publication

Legal Framework for Foreign Investment in the UK: 2025 Update

July 2011

Executive summary

This publication outlines the regulatory landscape for foreign investment in the UK, including market entry, sectoral rules, and investment protections.

It highlights recent reforms and the practical steps investors can take to structure, diligence, and execute projects efficiently.

Market entry and corporate structuring

We discuss entity types, governance, capitalization, and shareholder arrangements, including rights and obligations relevant to minority and strategic investors.

The section addresses licensing triggers and regulatory approvals applicable in regulated industries.

Investment protections and incentives

Treaty protections, stabilization mechanisms, and tax incentives remain core considerations for long-term capital.

Investors should consider contractual safeguards and dispute resolution clauses to mitigate political and regulatory risk.

Compliance and ESG

Anti-corruption, sanctions, data protection, and ESG-related reporting are central to diligence and ongoing compliance.

Boards should calibrate governance and disclosure frameworks early to support transparent operations and stakeholder confidence.

Dispute resolution

We outline litigation and arbitration pathways, interim relief, enforcement of judgments and awards, and emergency mechanisms.

Well-crafted contracts and contingency planning reduce friction and protect value in adverse scenarios.