US suppliers entering UK defence · 1 of 8
UK entity, and foreign ownership control or influence
A US parent cannot simply extend its own clearances across the Atlantic. MOD requires that foreign ownership, control or influence cannot be exerted over a facility handling UK classified material, and satisfying that is a structural question about your UK entity rather than a form to complete.
What this involves
- Assess whether the work you are pursuing actually requires a UK entity, because a good deal of MOD business does not, and incorporating early is a cost some US suppliers take on before they need to.
- Map what MOD will examine on foreign ownership, control or influence: board composition, who can direct the UK company, and whether a foreign parent or government can reach the classified side of the business.
- Work through the ring-fencing that mitigation typically involves, which can extend to separate information systems, separate physical space, separate financial reporting and separate personnel arrangements from the wider group.
- Coordinate with your US counsel and your UK solicitor so that the structure satisfies both jurisdictions rather than solving one and creating a problem in the other.
The assumption that costs US entrants the most
Assuming the UK works like the US in reverse. American suppliers arrive familiar with FOCI mitigation, Special Security Agreements and DCSA, and reasonably expect a mirrored process. The UK regime has the same underlying concern and different mechanics, different terminology and a different sponsor model. Mapping your existing US arrangements onto MOD assumptions is the most common source of wasted months.
Why it matters
Structure decisions here are expensive to reverse and they gate everything downstream, including whether your UK entity can ever hold a facility clearance. They belong at the start of a UK strategy, not after the first opportunity appears.
Common questions
Does a US company need a UK subsidiary to win MOD contracts?
Not always, and this is worth testing before you spend on incorporation. A great deal of MOD business is open to overseas suppliers, and facility clearance is not a prerequisite for bidding in most cases. Where a UK entity does become necessary is usually driven by the classification of the work, the need to hold a facility clearance, or contractual and practical requirements around where staff and data sit. Establish which of those applies to your target opportunities first.
How does the UK treat foreign ownership of a cleared facility?
MOD's concern is that foreign ownership, control or influence cannot be exerted over the organisation, including by non-British board members or by a foreign government or owner. Where a US parent owns a UK entity doing classified work, mitigation generally means demonstrable separation between the cleared UK business and the wider group. In practice that can extend to systems, premises, reporting lines and personnel functions.
Is UK FOCI mitigation the same as a US Special Security Agreement?
The underlying concern is similar, the mechanics are not. Do not assume that arrangements accepted by DCSA in the United States will satisfy MOD, or that the reverse holds. They are separate regimes with separate sponsors, and a group operating cleared entities on both sides usually needs each assessed on its own terms.
Cleared support
Consultants cleared to Baseline Personnel Security Standard and Security Check, with Developed Vetting cleared personnel available where a requirement demands it.
Reviewed 22 August 2026 against MOD published policy. Nothing here is legal, export control or security advice, and defence policy moves: confirm the current published position before planning around anything on this page.
The rest of the entry picture
See the full UK entry overview for US defence suppliers, or our MOD bid writing service.
Testing whether the UK is worth it?
That is the right question and we will answer it straight, including when the answer is not yet. A director replies. We work US business hours by arrangement.
UK entity, and foreign ownership control or influence
What do you supply, who buys it in the US today, and what has prompted the UK question?