The Benefits of Setting up a Company in UK
The UK has a range of benefits which contribute to the popularity of the country with foreign investors. Some of these are detailed below:
- Fourth largest economy in the world – expansive business market for trading
- Currency is the GB pound – stronger than the Euro
- Liberal business environment – advantageous for newly incorporated companies
- Native language is English – particularly beneficial for US investors
- A natural point of entry into Europe with its geographical position – easy access to the EU consumer markets
- Member of the EU
A significant amount of inward investment into the UK is achieved from the USA and Asia, more than any other country in the EU. Much of this foreign investment is pulled in by the country’s business friendly environment. It is one of the principal economies in Europe which makes the UK a very popular location for foreign investors.
One aspect in which the UK does not excel is the tax regime, which is not particularly favorable. The full Corporation Tax rate is 30%, compared to countries such as Iceland and Hungary with rates of 12.5 and 10% respectively. There is also a lack of tax relief available.
However, there is a range of financial incentives available in the UK for domestic and foreign companies. These include:
- Benefits for investment in certain areas and sectors of the UK
- Credit guarantees for exports
- Technical assistance for exports
- Grants for Research and Development
- Grants for boosting employment by creating jobs in areas of high unemployment – for example away from the capital and the South East of the country
The City of London is one of the supreme financial centers in the world and hosts many international banks. The banking sector in the UK is consequently professional and very accessible, supporting the advanced business community. Foreign investors establishing a company in UK have no trouble finding a bank suited to their business activity. As with many European companies the physical process of setting up a bank account can be laborious. UK accountants or company formation experts can manage this process for you and obtaining the support and advice of a specialist is advised.
Skilled Work Force
A developing recruitment sector makes recruiting staff fairly straightforward in the UK. British workers are driven, skilled, well-educated, able to adapt to management styles and industries, and dedicated. Companies incorporating in the UK can be sure to find local employees without any problems.
The British government maintains a liberal business environment in the country, and this is another beneficial feature attracting foreign investment.
Although the restrictions of foreign ownership or investment in the UK are generally light, governmental policies are in place to ensure that the regulatory environment remains progressive. There are also strict regulations to protect the consumer in sectors such as financial services, as well as safeguards against the abuse of monopolized powers.