Starting up a business could be a daunting task. It requires a lot of research, planning, funding, and external factors outside one’s control. In general, entrepreneurs would try and take as less risk as possible for their investment, and try to get as much advantage as needed. That said, one would opt to start a business in a place that gives them as much advantage as they can and with external factors (such as laws, economy, availability of skilled workforce and resources) working in their favour.
This is why the UK has become one of the most attractive places to do business in. So, let’s explore why many entrepreneurs start their business in the UK, and why you should do, too:
Ease of Doing Business
The United Kingdom is ranked among the top ten places with the highest score when it comes to ease of doing business. According to the World Bank, it takes an average of13 days to set up your business in the United Kingdom, which is significantly short when compared to the 32 days average for European countries. This is attributed due to the low restrictions when starting new operations.
One of the issues in most countries that make starting up businesses harder is the complicated tax systems. However, the UK is known to have a much simpler and straightforward tax system as compared to other countries. The Value Added Tax or VAT is set at 20% for most goods and services, which could be beneficial for companies in the region.
One could take advantage of the UK’s Seed Enterprise Investment Scheme (SEIS), which encourages investors and entrepreneurs to finance and start businesses through tax breaks. The UK’s SEIS tax relief offers qualified companies to take advantage of tax benefits such as 50% tax relief, 50% capital gain re-investment relief, 100% capital gains exemption, loss relief, and 100% inheritance tax relief. Additionally, companies involved in Research and Development (R&D) could qualify for a 100% deduction on corporate tax for their work and operations related to R&D. Small and medium enterprises could take advantage of this simply by spending on qualified R&D activities.
Surplus of Skilled Workers
Another reason why many local and foreign entrepreneurs have started doing business in the UK is that it has no shortage of skilled employees. The UK currently has a workforce of 30 million, which is the 2nd largest in the European Union.
International Trade Support
If you’re an overseas company or business, the UK’s Department of International Trade offers a lot of services to help you study, assess, and set up business in the UK. These include market research, tax advice, finding staff/employees, and even Visa application for entry to the country.
Good Economy and Infrastructure
A good economy and excellent infrastructure contribute a lot to businesses; it means that their enterprise can be part of a network of well-paid consumers and well-earning businesses. The UK also has one of the best ICT infrastructures as well as big infrastructure for utilities (energy, water), transportation, science, and waste management.
With its opportunities, resources, business incentives, and support, the UK is indeed one of the places for entrepreneurs to start their business. And if you wish to fully take advantage of the UK’s business and tax incentives, numerous firms in the UK can guide you in starting and managing your business and managing finances.