Are you thinking of doing business in the U.K.? If you are, you’re definitely not alone. The U.K. has long been recognized as an economic hub and perfect environment for businesses old and new. It’s no wonder that international businesses flock here to set up shop. If you’re looking to start a company in the U.K. or thinking of doing business here, this article will walk you through all the advantages of doing business in the U.K. and how your business could benefit from them too.
Before we look at the specific advantages of starting a company in the U.K., it’s worth addressing the elephant in the room: Brexit. It’s been two years since Britain’s exit from the European Union and its withdrawal from the Single Market and Customs Union.
The effects of Brexit have been felt far and wide, and it would be naive to suggest that it hasn’t affected business. As an article published by the BBC attests, in the immediate aftermath of the withdrawal, both the U.K. and the EU suffered a serious hit to trade.
But don’t be disheartened. The UK parliament entered into a Trade and Future Cooperation Agreement with EU national leaders in early 2021 that saved the UK from the possibility of a “no-deal” Brexit that would undoubtably had a negative impact on many businesses, and now that the UK is free from the EU trade agreements it has begun putting new trading agreements in place to ensure continuity for UK businesses.
Off the top of your head, you may be able to list a few of the advantages of doing business in the U.K., but some may not be so obvious. Let’s take a look:
The first and perhaps most compelling pro to doing business in the U.K. is that it’s easy. In the World Bank’s ‘Doing Business’ database, the U.K. ranked 18 out of 190 (in 2020) for ease of starting a Private Limited Company (Ltd), taking only 4.5 days to complete application form IN01, file for registration with Companies House, register for PAYE, register for VAT, and sign up for employer’s liability insurance (1).
The U.K. has long been a trading powerhouse. Its open market and strength across a diverse range of sectors makes it an appealing location to do business.
In addition, its central geographic location makes it easy to access and work with both Eastern and Western markets. (2)
Beyond geography, the U.K. is a highly accessible market in terms of language and business culture. (3) It helps that the U.K. also boasts a historically good reputation in business circles.
The U.K. also has a well-established and reliable infrastructure that supports innovation and business.
A fundamental advantage of doing business in the U.K. is the access you get to a highly-educated and skilled workforce that possess serious expertise. Plus, this workforce is international and connected.
The U.K.’s corporation tax currently sits at 19%, with a recent announcement by Chancellor Rishi Sunak that it will rise to 25% in 2023. Even despite this rise, the U.K.’s corporation tax will remain the lowest in amongst the G7 nations. (4)
The U.K.’s economy is overwhelmingly populated by private sector and small and medium sized businesses: accounting for 99.9% of the business population with 5.6 million businesses. (5)
The U.K. government is emphatically committed to stimulating the economy with an ‘Innovation Strategy’ that ‘leads the future by creating it.’ This involves investing in and supporting businesses that want to innovate, attracting new dynamic talent, and stimulating research and development. (6)
Beyond the advantages we’ve listed above, actually registering your business in the U.K. as a limited company comes with tax and legal advantages, especially in terms of limited liability. In addition, registering your company is essential for protecting your business’ name.
There’s no single answer to this question because, ultimately it comes down to your business’ specific needs and scope.
As we’ve mentioned, the economic and business effects of Brexit have already started to emerge. However, the full extent of how Brexit will impact business in the U.K. is yet to be seen.
If you’re wanting to register a limited company, here’s what you need to do:
The U.K.’s reputation as a business hub doesn’t come from nowhere. A long established economic centre, businesses can thrive here, benefiting from a diverse workforce, international reach, and an innovation-focused atmosphere. If the advantages of doing business in the U.K. weren’t clear before, we hope they are now.
And if you need advice on how to start your business in the U.K., get in touch and one of our lawyers can guide you through the process.
1. https://www.doingbusiness.org/en/data/exploreeconomies/united-kingdom#DB_sb 2. https://www.pwc.de/de/internationale-maerkte/assets/doing-business-in-the-uk.pdf 3. IBID 4. https://www.channel4.com/news/factcheck/factcheck-how-competitive-is-the-uk-after-rishi-sunaks-corporation-tax-hike 5. https://www.fsb.org.uk/uk-small-business-statistics.html 6. https://www.gov.uk/government/publications/uk-innovation-strategy-leading-the-future-by-creating-it
Please enter your name and email to receive our latest newsletter.
Please fill in the fields below to receive your free download.
Global Legal Services Brochure Subscription Legal Services Brochure V-Sign Remote Document Witnessing
We are a multi-disciplined global law firm that helps all businesses, from one man bands through to multinational & publicly quoted companies, providing high quality legal advice, when needed, at prices other law firms can’t compete with.
We are not just another law firm that claims to be different, but still charges extortionate hourly rates to support its lavish infrastructure and the lifestyles of a wealthy partner structure. We are different.
We are unique in the legal profession and lead where others follow, driving the law to provide a more commercial and affordable global legal service to clients.
We provide a free, no obligation consultation to let you know how we can help, and what it will cost.
Call a lawyer for a chat on: 0333 772 0967