Multinational companies choose to start doing business in the United Kingdom for a reason. They gain access to affluent new customers, have the opportunity to refresh an otherwise stagnant product or service, and open up the potential to do more business with other countries all across Europe. In fact, companies based in the UK can reach more than 500 million consumers in Europe alone.
As a result, the benefits truly shine when taking your business to the UK. In this post, we’ll point out some of the greatest benefits that happen when you move your operations over the pond.
1. Ease of Doing Business in the United Kingdom
One of the largest benefits of doing business in the United Kingdom is the ease of doing business. According to World Bank, the UK has one of the highest ease of doing business scores out of all the countries in the world. There are several opportunities available in different sections from advanced manufacturing to IT. Plus, the restrictions to starting a new operation are relatively low compared to other developed countries in both the East and West.
If you partner with an organization such as an Employer of Record like Velocity Global, you will have an even easier time adjusting to the new surroundings and ensuring that your company meets the compliance requirements involved with international growth.
2. Manageable Taxation System
Easily one of the most complicated factors to global expansion is navigating the complications of the tax system. In the UK, it’s pretty simple compared to other foreign markets. As of 2017, the corporate tax rate is set at 20%.
In addition, the UK has double taxation agreements through treaties with other countries so as a result, most UK-based companies will not pay Corporation Tax on foreign dividends. There is also a Value Added Tax (VAT) payable on most goods and services supplied in the UK, currently set at 20%. This can be an additional benefit to companies operating in the region.
3. Recruiting Skilled Employees in the UK
Another primary reason for moving operations into Europe is the vast pool of skilled employees. In fact, the UK has a workforce of more than 30 million people. The UK is also one of the only European countries expected to have labor supply growth in the next 15 years.
In addition to having many qualified workers, the UK has a flexible market with regulations designed to protect employees. As an employer, this should be viewed as a benefit. You can follow pre-established rules and regulations that improve the life of your team members.
Also, labor costs in the UK are the most competitive in Western Europe considering the lower employer social security contributions. In fact, the UK’s overall cost of labor is lower than countries such as France, Ireland, the Netherlands, and Germany.
We suggest working directly with a partner to help establish your presence in the UK so your organization can compliantly hire and pay your new team members.
4. Strong Infrastructure for Doing Business in the United Kingdom
A strong infrastructure is important to the overall growth of your business in any country. In the UK, there are ongoing infrastructure improvements in areas including energy, transportation, waste management, and telecommunications.
The region’s focus on sustainable change and positive improvements ensures there is a solid foundation for successful business operations.
5. Lower to Manageable Regulations
The UK is now free to establish its own regulations in sectors such as tax, finance, and legal, tailored to its own needs. Agreements can be varied on a country-by-country basis, so a deal with Sweden may differ from a deal with Germany. This could increase competition which in turn provides a great opportunity for growth.
Expand into the UK With an Experienced Global Expansion Partner
Whether you’re committed to expanding into the UK or have other markets on your mind, Velocity Global’s Global Work Platform can have you up and running —virtually anywhere—all without establishing an entity. If you’re ready to make the UK your first or next global expansion destination, reach out to Velocity Global today, and let’s make it happen.
Frequently Asked Questions
Which areas of business are the most profitable in the UK?
While there are many profitable areas of businesses in the UK, the biggest industries include management consulting, banking, general insurance, construction contracting, pension funding, and more.
Is the UK good for business?
The UK is traditionally a very good place to start a business or expand to in terms of setup costs, compliance, and scaling. The UK has one of the highest ease of doing business scores out of all the countries in the world.
Can a foreigner start a business in the UK?
Yes. Anyone can start a business in the UK without a current residential status. There are no added barriers to entry for a non-citizen.