SETTING UP A BUSINESS IN THE UNITED KINGDOM
Despite the United Kingdom's soon withdrawal from European Union, it is one of the most successful economies in the Europe and is built on strong foundations. It is ranked as one of the top ten largest economies in the world, and have a GDP per capita of $43,902 (2016 estimate). It is the most striaght forward country in Europe in which to register a company, however it's important that you have the right advice after your company is registered. Euro Company Formations can register your company in a matter of hours, and provide you with the ancillary services you will need. Please contact us for further details today.
Why is the UK so popular among foreign investors?
Investors have cited a number of reasons for choosing the UK, including these:
- size of the market - it is the one of the largest economies and 2nd largest in the EU (2016)
- strong currency - the pound has performed well despite losing value against the Euro
- location and language - a natural point of entry into the EU
- government policy - the UK has a liberal business environment
- Some excellent Government incentives available
- Very easy to incorporate - UK registration takes just 1 working day and can even be done in just a few hours!
- Relatively low corporate tax. Full corporate income tax is 20%, which makes it the lowest rate in all of the G8 countries.
What are the main types of company in the UK?
These are the most popular structures for foreign companies entering the UK:
- private limited company (Ltd)
- public limited company (Plc)
- branch of a foreign company
- limited liability partnership
What are the main features of a private limited company?
- by far the most popular format for foreign investors
- only one shareholder needed, ideal for wholly-owned subsidiary
- no minimum capital requirement
- Single Director company available. Company secretary optional
- UK Registered Office required
- Accounts need to be filed annually
What are the main features of a Plc?
- the minimum share capital for a Plc is £50,000
- at least 25% of the share capital must be paid up
- minimum of two directors and a company secretary
- financial statement to be audited if turnover exceeds £5.6m
What are the main features of a branch?
- foreign parent responsible for all liabilities of UK branch
- branch required to register with Companies House
- parent company accounts to be filed annually
What are the main features of a limited liability partnership?
- at least two members, each with limited liability
- fairly new format but increasingly used for joint ventures
- same registration and disclosure requirements as limited company
- other types of partnership are possible, but rarely used by foreign companies
How easy is it to recruit staff in the UK?
Despite a steady fall in unemployment over the past decade, foreign companies will find little difficulty in recruiting local staff. British workers are generally well educated and motivated and able to adapt to different management styles. There is a thriving recruitment sector in the UK, and we will be happy to help if you require advice on this, please contact us. Whilst London is expensive, the north of England offers an opportunity to recruit staff at a competitive level.
What is the regulatory environment like?
The UK government places a priority on attracting investment from abroad, and has sought to ensure that the regulatory environment is as liberal as possible. There are very few restrictions on foreign ownership or investment, although certain sectors, such as financial services, are strictly regulated to protect the consumer. The authorities also enforce laws guarding against the abuse of monopoly powers.
Are there financial incentives available?
Financial incentives are available for companies investing in specific areas and sectors. Grants may be provided to assist job-creating investment in certain areas of the UK, mainly outside London and the south east. Other incentives take the form of R&D grants, technical assistance for exports, and export credit guarantees.
And what about banking facilities?
The City of London is one of the world's foremost financial centres, and banks from most countries have offices here. The UK offers sophisticated banking facilities to the business community, but the process of opening a bank account can be time-consuming and a personal visit may be required. We can help you cut through the red tape - our bank account page will explain how.
How can I get more information?
EuroCompanyFormations.com UK company formation service makes it easy for you to open a company in the UK, with incorporations in only 1 working day, so please contact us for further details.