7 Benefits of Starting a Business in the UK
The United Kingdom (UK) is home to numerous multinational companies – and for good reasons. The UK offers businesses the chance to reach out to many different kinds of customers, along with the opportunity to join hands with many other countries throughout Europe. Research shows that a UK-based company can gain access to more than 500 million buyers in Europe alone.
In other words, starting a business in the UK has plenty of major advantages – and this blog will dig deeper into some of those:
Benefits of Starting a Business in the UK:
1) Ease of conducting business:
The UK’s ease of conducting business is one of the biggest reasons that the country is so attractive to entrepreneurs and investors. The World Bank says that the United Kingdom’s ease-of-doing-business score is amongst the highest across the globe. You can exploit numerous opportunities in a number of sectors that range from IT to advanced manufacturing. Moreover, the UK has considerably fewer restrictions on initiating new operations, compared to many other developed nations.
2) A flourishing economy:
According to the OECD, the UK claims one of Europe’s highest growth rates – well beyond the Eurozone and European GDP growth averages. This prosperous economy means that UK-based businesses will gain access to highly affluent buyers with high disposable incomes.
3) Straightforward taxation system:
A major hindrance in expanding globally is the complicated tax systems that entrepreneurs have to deal with. Thankfully, the UK’s tax system is pretty simple, compared to the systems operating in several other markets. At the moment, the UK has a 20% corporate taxation rate.
Furthermore, the country has signed double-taxation agreements with many other nations, which means that a large proportion of UK companies are not required to pay taxes on any foreign dividends. In addition, the UK has also implemented a 20% VAT (Value Added Tax) on a large number of services and goods supplied in the country, which can serve as a further advantage to your business.
4) Abundance of skilled employees:
Another reason that conducting business in the UK should be your priority is the country’s large pool of skilled human capital. In fact, the UK’s workforce, comprising 30 million people, is the second largest across the entire European Union. Moreover, the UK is one of the few European nations that can expect a growth in labor supply over the next ten to fifteen years.
Not only does the UK offer qualified workers in abundance, but the country’s flexible market has implemented various regulations to protect its employees. Employers should see these regulations as benefits, as they can adhere to pre-established rules and improve their team members’ lives.
Furthermore, the UK has some of Western Europe’s most competitive labor costs, owing to the social-security contributions made by employers. In fact, you will find that the UK has overall labor costs that are lower than those of countries like France, Germany, Ireland, and the Netherlands.
While the UK, on the whole, is quite abundant in terms of talent, London, in particular, stands out for its immensely talented workforce. The capital is home to more than 250,000 software developers – more than any other city across Europe. To put this in perspective, Paris has a total of 160,000 software developers, while Berlin’s count stands at 85,000.
5) Strong infrastructure:
Regardless of the country where you choose to do business, you cannot hope to succeed without a robust infrastructure. The UK is constantly making improvements to its already-strong infrastructure, in areas such as transportation, energy, telecommunications and waste-management.
The region lays a lot of emphasis on positive improvements and sustainable change, which means that there is a firm foundation in the UK on which you can build a successful business.
6) Manageable regulations:
The UK can now independently establish regulations in departments such as finance, tax, and law – regulations that adhere to the country’s specific needs and requirements. The UK can also tailor inter-country agreements, depending on which country it is agreeing with. So, for instance, a deal signed with Germany can look different than one signed with, say, Sweden. These flexibilities can lead to increased competition, which can also translate into greater growth opportunities.
7) Access to Europe’s financial hub:
London is one of the world’s biggest financial centers and draws many entrepreneurs from across the globe. London is also home to some major financial institutions, such as the London Stock Exchange, Bank of England, and HSBC and Barclays – two of the world’s biggest banks.
The numerous financial services available – coupled with its enviable reputation as a major financial center – means that London is one of the world’s best spots for anyone looking to establish a business or even an office.
From a buzzing financial hub to one of the most talented workforces around the world, the country promises many and varied advantages for anyone looking to conduct business in the UK.
To learn more about starting a business in the UK and explore your options, please feel free to reach out to us.