The UK Independence Party was formed on 3 September 1993 at the London School of Economics by several members of the Anti-Federalist League (AFL). The latter had been founded by Dr Alan Sked in November 1991 with the aim of running candidates opposed to the Maastricht Treaty in the 1992 general election.

UKIP has grown to have constituency branches around the country, national headquarters in Devon and a national party newsletter, the UK Independence News. It contested the 1994 Euro-elections running candidates in 24 out of the 87 seats and secured a highly respectable 157,000 votes.  On 28 October 1995 the party held its first annual conference at the LSE which over 500 delegates from all over the UK attended. The second conference was held on 12 October 1996 at Central Hall, Westminster, nearly 1000 delegates attended and excerpts from the speeches were broadcast on all TV channels.

Each year five members are elected to the NEC, which is the party's highest management committee. There are 15 members in all. Elections are on a one member, one vote basis. Party policy now also has to be approved by conference. The party leader, under the party constitution, is elected on the basis of one member one vote. The current leader is Nigel Farage MEP, Previous leaders were Michael Holmes, Dr Alan Sked, Jeffrey Titford MEP and Roger Knapman MEP.

In order to protect the party from infiltration by extremists, all party members must sign a membership form supporting the party's principles, which must also be respected by conference. All prospective candidates and constituency office bearers must sign declarations confirming that they have no criminal record and no previous association with extremist political groups of right and left.

To date the party has made excellent progress. From half a dozen people it has established itself nationally as the UK's fourth party, with a membership currently in excess of 20,000. It has developed a unique set of policies (on defence, crime, agriculture, housing, education, welfare and economics) for Britain's independence and regeneration, and has shifted the whole political debate towards the re-establishment of our independence. It fights most by-elections and in the 1999 Euro-elections achieved strategic political breakthroughs by returning 3 European MEPs. By the arrival of the new millennium UKIP had been responsible for the reshaping of UK politics.

Its detractors poured scorn on its claims prior to the 2001 general election that it could field 300 candidates. It eventually fought the election with candidates in 428 constituencies and polled 390,260 votes, making it the fourth largest national party.

By far the most significant achievements to date have been the election of 12 UKIP MEPs at the June 2004 EU elections and beating the Conservatives into 4th place at the Hartlepool by-election in September 2004.