The UK is one of the most attractive and welcoming destinations for foreign entrepreneurs who want to start a business. The UK offers a range of benefits, such as a large and diverse market, a skilled and flexible workforce, a low and competitive tax system, and a supportive and innovative business environment. In this article, we will explore some of the main reasons why you should consider starting a UK company as a foreign entrepreneur.
Access to a large and diverse market
The UK is the fifth-largest economy in the world, with a GDP of over $2.8 trillion in 20201. The UK has a population of over 66 million people, with a high level of disposable income and consumer spending2. The UK is also a gateway to the European market, with access to over 500 million customers and a GDP of over $18 trillion3. The UK has a strong and stable trade relationship with the EU, as well as with other major economies, such as the US, China, India, and Japan. The UK is also a member of the Commonwealth, a network of 54 countries that share historical, cultural, and economic ties4.
The UK market is diverse and dynamic, with a variety of sectors and industries that offer opportunities for foreign entrepreneurs. Some of the key sectors include financial services, technology, creative industries, life sciences, manufacturing, and renewable energy. The UK is also a leader in innovation and research, with world-class universities, research institutes, and start-up hubs. The UK ranks fourth in the Global Innovation Index 2020, and has produced 119 Nobel Prize winners5 .
Access to a skilled and flexible workforce
The UK has a skilled and flexible workforce, with a high level of education, productivity, and diversity. The UK has over 32 million workers, with 42% of them having a tertiary education. The UK also has a strong entrepreneurial culture, with over 6 million small and medium-sized enterprises (SMEs) that employ over 16 million people. The UK ranks sixth in the Global Entrepreneurship Index 2020, and has nurtured some of the most successful entrepreneurs in the world, such as Richard Branson, James Dyson, and J.K. Rowling.
The UK workforce is also flexible and adaptable, with a range of employment options and contracts that suit different business needs. The UK has one of the most flexible labour markets in Europe, with low levels of regulation, bureaucracy, and unionisation. The UK also has a diverse and multicultural workforce, with over 200 languages spoken and over 14% of the population born overseas. The UK is a tolerant and inclusive society, with strong anti-discrimination and equal opportunity laws.
Access to a low and competitive tax system
The UK has a low and competitive tax system, with favourable rates and incentives for businesses and entrepreneurs. The UK has one of the lowest corporate tax rates in the G20, at 19%, and plans to reduce it further to 17% by 2020. The UK also has generous tax reliefs and allowances for businesses, such as the Annual Investment Allowance, the Research and Development Tax Credit, the Patent Box, and the Enterprise Investment Scheme. The UK also has a wide network of double taxation agreements with over 130 countries, which prevent double taxation and facilitate cross-border trade and investment.
The UK also has a simple and transparent tax system, with online filing and payment options and a dedicated tax authority, HM Revenue and Customs (HMRC). The UK ranks 13th in the World Bank’s Ease of Paying Taxes Index 2020, and has one of the lowest tax compliance burdens in the world. The UK also has a stable and predictable tax regime, with clear and consistent rules and regulations.
Access to a supportive and innovative business environment
The UK has a supportive and innovative business environment, with a range of policies and programmes that encourage and assist foreign entrepreneurs to start and grow their businesses. The UK has a pro-business government, with a clear vision and strategy for boosting the UK’s competitiveness and productivity. The UK has also launched several initiatives to attract and retain foreign talent and investment, such as the Global Talent Visa, the Start-up Visa, the Innovator Visa, and the Global Entrepreneur Programme .
The UK also has a vibrant and dynamic business ecosystem, with a network of organisations and institutions that provide advice, funding, mentoring, and networking opportunities for foreign entrepreneurs. Some of the key players include the Department for International Trade, UK Trade and Investment, Innovate UK, the British Business Bank, the British Chambers of Commerce, and Tech Nation . The UK also has a thriving start-up scene, with over 30,000 start-ups launched in 2019, and over 80 start-up accelerators and incubators across the country .
The UK is an ideal destination for foreign entrepreneurs who want to start a business, as it offers a range of benefits, such as a large and diverse market, a skilled and flexible workforce, a low and competitive tax system, and a supportive and innovative business environment. The UK is also a global leader in innovation and research, and a gateway to the European and Commonwealth markets. The UK welcomes and supports foreign entrepreneurs, and provides them with various visa options and programmes to help them succeed. If you are interested in starting a UK company as a foreign entrepreneur, you can contact us for more information and guidance. We are a team of experts who can help you with the legal, financial, and practical aspects of setting up and running a UK business.
Published: 2/12/2024 9:06:25 AM