The United Kingdom (UK) is a global financial hub with London frequently specified as the prime financial capital. A highly competitive and business-friendly tax climate helps make the U.K. one of the most appealing commercial homes in Europe. The power of its currency (especially in emerging economies) makes UK company formation even more viable. Following are some advantages of having a business in the UK:
Strategic Location:
Having a company in UK gives access to new wealthy customers. It provides opportunities to a person to revive a product or service that was otherwise stagnant and also opens up the potential to do business with other countries across Europe. It also has great connectivity as it has direct flights from almost all major cities world over.
Ease of Doing Business:
UK ranks 8th out of 190 countries as per the Ease of Doing Business Report 2020 by the World Bank Group. The UK is a fertile ground that offers opportunities and capital for expansion in multiple sectors, that's why it is one of the popular destination amongst forgein investors to register a new company in UK.
Solid Infrastructure:
UK has kept its pace state of the art technology and improving infrastructure for businesses by continuous improvements in various areas such as transportation, energy, etc. This provides companies with a great foundation to conduct their business.
Business Friendly Regulations and Tax Rates:
The restrictions to start a new business are relatively low compared to some other developed countries. Current income tax rate in the UK for companies is 19% and the applicable standard VAT rate is 20%. UK has double tax treaties with more than 130 countries, making it one of the world's largest networks.
Availability of Skilled employees:
UK has a huge pool of skilled workforce which makes it easy to hire talent while setting up a new business. Also the cost of labour in the UK is lower that some other countries especially those in Western Europe. This also helps in reducing the overall cost of business to a certain extent.
High Standard of Living:
UK provides one of the world’s highest standards of living with access to cultural institutions, amenities making it one of the most preferred places to live.
With UK now leaving with EU, it may also create some additional advantages such as allowing more flexibility to UK on its rules and regulations, developing trade relations and capitalize on opportunities with other major economies, etc. Hence, after consideration of all these advantages, it can be concluded that UK is a good destination for business formation.
