-
By miguel-ingles
- In Uncategorized
Experts consider the UK as a main business hub. It atracts both startups and multinational companies to establish their offices into its territory. But why is this happening? In this article, I will list some of the advantages of forming a company in the UK.
Why Setting Up a Company in the UK?
The UK counts with benefits regarding geographical, infrastructure, fiscal, administrative, educative and reputation factors, among other aspects, in comparison to other markets.
But something that is usually underlooked but is really important is the language. English is the official UK language, but it is also considered as the global one, both in business, in research and development or in any other field. Therefore, forming a company here will accelerate administrative processes and ease establishing international relations with corporations from other countries.
Geographical and Infrastructure Advantages of Forming in the UK
Its strategic location between America and Europe and between Arctic and Mediterranean seas is one of the main factors business set up here, especially when regarding international trade.
In addition, its time zone facilitates coordination of business operations with Asian, American and European countries.
These two reasons attract companies and investments from abroad, but especially multinational corporations, which choose to establish their main headquarters in the UK.
Fiscal and Administrative Advantages of Forming a Company in the UK
Firstly, any citizen from any country can form a business in the UK online. Moreover, administrative procedures may take as little as 24 hours, and the fees could be inferior to 15 GBP. In addition, laws do not oblige founding members to live in the country, although the main offices must be set up in the UK.
I must mention that people can also do other processes online, such as tax payment. For example, in this webpage you could pay the Corporation Tax.
On the other hand, economy wise, the UK has trade deals with many other nations, which makes the access to other markets easier for British companies. Additionally, experts praise the UK for its economic and political stability and fiscal rules are less strict than in neighbouring countries.
You will find more information about the creation process of a company in the UK in this article.
Reputation Advantages of Setting Up a Company in the UK
Experts consider the UK as a global business hub. Consequently, setting up a company here can improve the reputation of the corporation, giving it a more professional image and international credibility. This is due to the high consideration the country keeps and because of the trade deals the UK has made in past years.
Educational Advantages of Setting Up a Company in the UK
The UK holds some of the most prestigious universities in the world, such as Oxford or Cambridge. From them, we could hire highly educated and qualified workers from many different fields. This is essential for a territory’s business development.
In addition, companies that set up here may benefit from investigation and innovation that comes from these universities. They mainly focus on science, health and technology. These will let us offer certain products and services unavailable in other markets.
Sectors with a Higher Business Presence in the UK
Every year, service industries have a bigger impact in British economy. 30 years ago, they held 70% of the country’s annual gross value added (GVA). In the present day, that percentage has grown to 80%. Among services, the most important ones are real estate, with a 13.1% of GVA, retail and wholesale (9.9%) and finance and insurance (8.8%).
Outside service industries, manufacturing is the industrial activity with the largest share of annual GVA (9.1%), although its relevance has declined in recent years. Therefore, the best business option will be to set up a company in the previously mentioned fields. An alternative would be to establish in an emergent ambit, like IT and communications. Currently, it is not the most valuable sector (5.9% of GVA). However it will be crucial in industrial and economic development in a foreseeable future.
You can find more information about business relevance in the UK in the following article.