The UK is an attractive place to invest in, especially for founders looking to grow their startups to a global level. This is because businesses can gain a rich client base. Setting up your company in the UK provides you the potential to do more business within other countries in Europe.
Companies based in the UK can reach more than 500 million consumers in Europe alone. In this post, we will highlight the top ten benefits of starting a business in the UK.
Advantages of doing business in the UK
1. Ease of business setup and operation
The World Bank has ranked the UK as the easiest place to start up and run a business in Europe. According to the World Bank, it only takes 13 working days to set up a business in the UK, as against the European average of 32 days.
Similarly, as stated by the World Bank, the UK has one of the highest ease of doing business scores out of all the countries in the world, as the restrictions to start a new venture are comparatively low as compared to other developed countries.
This is one of the reasons why the UK has been ranked first in Europe and sixth in the world to operate a business.
2. The use of international language in business
Businesses that can communicate with their customers in English both online and offline have more advantage over those who cannot. This is because a large percentage of customers speak and read English. Operating a business in English gives businesses in the UK a natural advantage when communicating globally.
Also Read: How to Register Your Business as a Foreigner in the UK
3. Lower tax rates
One of the hardest parts of running a business in most countries is navigating the complications of the tax system. The corporate tax rate in the country is set at just 20%, as compared to other European countries where the tax rate could be as high as 34%.
In addition, the United Kingdom has double taxation agreements through treaties with other countries, as a result, most UK-based companies will not pay Corporation Tax on foreign dividends. There is also Value Added Tax (VAT) payable on most goods and services supplied in the UK, currently set at 20%.
This can be counted as an added value to companies operating in the region.
The United Kingdom has reduced its corporate tax rate from over 50% in the early 1980s down to one of the lowest in the industrialized world. The UK’s highest personal tax band at 40% is one of the lowest in the European Union.
4. Flexible labour markets
The United Kingdom has been rated by the World Bank as the second-best place in Europe to employ workers, just behind Denmark.
Another important reason for moving operations into the United Kingdom is the immense pool of skilled employees. In short, the UK has a solid workforce of more than 30 million people, which is the second-largest workforce in Europe.
The UK has the top six universities in Europe and two of the top three globally according to the Times Higher Education Supplement (THES). In addition to having one of the best workers, the United Kingdom has a flexible market with regulations designed to protect employees.
As an employer, you should see this as a benefit to your business. The UK is also one of the European countries everyone expects to have labour supply growth in the next 15 years.
5. Few entrepreneurial barriers
The United Kingdom is the second in the world for Product Market Regulation (PMR) behind Australia, according to the Organization for Economic Cooperation and Development (OECD). It has the least barriers to entrepreneurship in the world.
Now that it is exiting the European Union, it now has the flexibility to further lower the regulations and barriers.
6. Blossoming economy
In spite of Brexit, the United Kingdom has one of the highest Gross Domestic Product (GDP) growth rates in Europe, well above the Eurozone and European averages.
Also Read: 9 Investment Ideas for Foreigners in the UK
7. World leader in innovation
The United Kingdom is one of the most productive places for innovative minds and firms in the globe, rated second only to the United States of America for the quality of its research base.
8. Stable political environment
The UK has been ranked by Transparency International as one of the most transparent (least corrupt) countries in the world. It has a rating higher than Japan, Germany, France, and the USA.
9. Ease of property registration
The United Kingdom has been ranked above Ireland, France, Italy, and Germany as the easiest place for foreigners to own and register a property.
10. Increased flexibility
When the United Kingdom leaves the European Union, it will be able to position itself better for quick reactions to market shifts and global events. This can be beneficial to businesses operating in the UK, which is a good reason to consider moving to the country despite all the concerns surrounding Brexit.
Why should I do business in the UK?
There has never been a better time to start and establish a business in the UK than right now. The United Kingdom is one of the most open and welcoming countries in the world for business. With its reinvigorated global outlook post-Brexit, it is attracting entrepreneurs from all over the world.
These seasoned entrepreneurs are moving to the country and starting up ventures to participate in the UK success story.
Also Read: 10 Small Business Ideas for Stay-At-Home Mums in the UK
Which sectors are the fastest growing in the UK
So you decided to start a business in the UK after taking note of all the benefits it holds for entrepreneurs, and you wish to know which sector is the most profitable to establish a business in. Marketing, energy, fintech, and advertising are some of the fastest-growing sectors in the UK.
As the Unicorn capital of Europe, the UK is behind only the U.S. and China when it comes to building fast-growing global firms. With record investments in a number of sectors including Artificial intelligence (AI), fintech, and clean energy. The UK is the perfect place to grow your AI, fintech and clean energy company.
What are the main benefits of doing business in the UK in 2024?
Bearing in mind all we have discussed so far, some of the biggest benefits of starting a business in the UK in 2024 are that the United Kingdom has reliable legal protection, an independent judicial system, flexible taxation, as well as high confidence from foreign partners.
Conclusion
Whether you choose to start up a business in the UK or just stay in it, the country is one that is both rewarding and enchanting. Get peace of mind both as an employee and a business owner because of the laws and regulations set in place to benefit its citizens and foreigners.
