The UK: an ideal place for American investors to start a company
The United Kingdom has without a doubt been one of the most prosperous economies in the entire European Union. That is because the UK has done such an excellent job of extending benefits to foreign investors to start a UK company. They therefore receive more incoming capital from Asian and American investments than any other EU country. As recently as 2003, the UK received nearly 1/4th of all capital investments into Europe according to Ernst & Young. The reasons behind such a substantial and consistent nonresident capital infusion are the liberal business requirements and minimal regulations imposed on the American investor.
Setting up business in the UK for an American means accessing one of the most liberal corporate environments in the world. Almost no restrictions apply to foreign ownership or capital investment, meaning that American investors with plans both large and small can open the doors on their own virtual or physical UK company with little qualifications. In at least one case, no minimum capital requirement is imposed, and a minimum of only one director and shareholder need be listed. Those are the base requirements to open up a Private Limited Company, by far the most popular form of UK company formation for foreign investors desiring access to the world’s fourth-largest economy.
A common question regarding UK company formation for an American investor regards taxation. While the UK doesn’t have the most attractive tax offering for foreign-owned businesses, the full corporate tax rate currently standing at 30%, the UK currency based on the Pound has performed better than the Euro, and the UK provides geographical and cultural benefits as a natural physical point of entry into the EU. The reason why so many foreign investors have flocked to the UK is not the tax rate, but more frequently the incredibly liberal business climate that imposes few regulations on the American investor.
And for the American investor looking to open a physical branch office of an existing business, the foreign parent company retains all liabilities of the UK operation, and the branch office must register papers with Companies House. Parent company accounts must be filed annually, and there are no filing requirements locally for the branch operation. For those physical operations, staffing recruitment options are very attractive, as UK employees are generally well trained and able to adapt to different management styles.
Many potential American investors are wise to shop around for possible incentives and grants before opening an overseas company, and this is one area where the UK is more than happy to oblige. To bolster certain sectors and geographical areas, the UK provides grants to job-creating American investors, especially outside London and in the Southeastern part of the country. Getting all your questions answered is as easy as contacting a seasoned UK company formation specialist, and you too can become one of the many American investors who reap the liberal rewards this powerful economy has to offer.
For more information about forming a UK company visit our friends at www.openaeuropeancompany.com