The United Kingdom is known for its stable economy, clear and nurturing business environment and wide opportunities for international trade. Being an attractive country to register and do business in, it is being favoured by investors from all over the world.
In addition, the British themselves are interested in attracting foreign investors, for whom the country has created and maintained a liberal tax regime for a long period of time.
In this article we will look at the main reasons why registering a company in the UK can be a great strategic decision for your business.
5 main advantages of incorporating a company in the UK
There are dozens of such lists. But let’s look at the main benefits that will be relevant to almost any businesses.
Prestige and trust
Opening a company in the UK gives your business a high level of credibility and prestige internationally. British law is respected by customers, partners and investors, helping to strengthen your brand and enhance your reputation.
Ease and speed of incorporation
The process of incorporating a company in the UK is characterised by its simplicity and speed. Minimal requirements for constitutional documents and simplified procedures make the process itself accessible to entrepreneurs with no experience.
Access to international markets
The UK is one of the world’s leading economies and a member of numerous international organisations, providing easy access to international markets.
Registering a company in the UK gives you the opportunity to export and import goods and services and to work with foreign partners.
Stable legal system
The UK legal system is renowned for its transparency and stability. British law protects the rights of entrepreneurs and investors, reducing risk and providing confidence in the future. In addition, British courts provide high quality legal protection when necessary.
Tax advantages
The UK offers a favourable tax environment for business. The UK corporation tax rate is 19%, one of the lowest in the G7.
There are also various tax reliefs and incentives for investors and start-ups, which help to significantly reduce the tax burden.
Some peculiarities of registering a business in the UK
Non-residents often register:
- In England – limited liability companies (LLC, LTD or LLP, the names are different, the essence is the same);
- In Scotland – Scottish Limited Partnerships – SLP or simply LP, without the letter “S” Scottish;
- If the main shareholders of registered companies are not UK residents, they are entitled to use the low tax (offshore) regime.
- If the management centre of companies registered in England or Scotland is located outside these countries, the company (company) may be exempt from income tax.
For successful business operations it is necessary to open an account in one of the banks of England. Having such an account allows you to work with the most common world currencies, and the interest of partners and counterparties to the company with an English bank account increases.
