A UK Economic Interest Grouping (UKEIG) is a specific type of legal entity that allows businesses or individuals in the United Kingdom to collaborate with one another—or with partners in the European Union—on a not-for-profit basis. UKEIGs are the result of the United Kingdom’s departure from the European Union and serve as the domestic equivalent of the European Economic Interest Grouping (EEIG), which no longer operates under UK jurisdiction.
UKEIGs are particularly valuable for projects that require the coordination of resources, expertise, or market access between different organisations, without necessitating the creation of a fully-fledged company or partnership. Though they do not aim to make profits for themselves, members of a UKEIG may benefit indirectly from its activities. Examples include shared research, joint purchasing, logistics coordination, or cross-border promotional campaigns.
Background
Prior to Brexit, the UK was part of the EEIG framework, which allowed businesses from different EU member states to form an entity that facilitated cooperation across national borders. The EEIG model was introduced under Council Regulation (EEC) No. 2137/85 and became available in the UK in 1989. However, following the UK’s withdrawal from the EU, all existing EEIGs registered in the UK were automatically reclassified as UKEIGs on 1 January 2021, under The European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2018.
This shift ensured continuity for UK-based groupings and preserved the legal mechanisms that had previously supported economic collaboration within the EU framework. However, UKEIGs are no longer governed by EU law and are instead subject to UK-specific regulations.
Legal Status
A UKEIG is a body corporate with its own legal personality. This means it can enter into contracts, employ staff, own assets, and take legal action in its own name. However, it is not considered a separate taxable entity. Instead, its profits and losses are shared directly among its members and taxed at the individual or corporate level according to each member’s own tax status.
The UKEIG must have a UK address as its official seat, and it must be registered with Companies House. It is also required to file annual returns and notify the registrar of any changes to its membership or structure, in much the same way as a company or partnership would.
Purpose and Activities
A UKEIG’s primary objective is to facilitate or develop the economic activities of its members. It may only act in support of its members’ operations and may not itself seek to make a profit. In practice, this means that a UKEIG might coordinate shared infrastructure, manage common services, or represent the collective interests of its members in certain markets.
Activities may include:
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Joint marketing or promotional campaigns
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Shared research and development initiatives
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Coordinated purchasing or supply chain management
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Collective negotiation with suppliers or customers
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Standardisation or quality assurance activities across member entities
It is important to note that the UKEIG must not employ more than 500 people and must operate within the boundaries of UK competition law and other relevant regulations.
Membership
Membership of a UKEIG is open to companies, firms, and individuals carrying out an economic activity. Although initially designed to facilitate cooperation between EU-based entities, UKEIGs may now comprise solely UK members, or UK and foreign members, depending on the grouping’s operational needs.
Members are jointly and severally liable for the grouping’s debts and obligations, meaning that if the UKEIG cannot meet its commitments, any or all of its members may be held personally responsible. This is an important consideration when deciding whether to form or join a UKEIG.
Governance and Administration
A UKEIG must appoint at least one manager, who may also be a member. The manager is responsible for the day-to-day operation of the grouping and for ensuring compliance with its legal obligations. In some groupings, especially those with complex structures, more than one manager may be appointed.
The UKEIG must maintain records, submit filings to Companies House, and publish notices in the Gazette when required. These responsibilities ensure transparency and allow the public and creditors to understand who is behind the organisation and how it operates.
Conclusion
The UK Economic Interest Grouping provides a flexible legal structure for organisations that wish to collaborate without creating a traditional company or partnership. Rooted in its European predecessor, the UKEIG retains many of the strengths of the EEIG model while adapting to the UK’s post-Brexit legal landscape.
It is particularly well suited to cross-sector partnerships, regional development projects, or joint ventures where the objective is shared benefit rather than direct profit. For those considering a collaborative business model, especially one involving UK and international partners, the UKEIG offers a practical and well-established solution.