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UK: An Ideal Destination to Set Up a Business

UK: An Ideal Destination to Set Up a Business

Importance of Finding the best environment for your business

Running a business is risky; therefore, it is not for the faint of heart. Successful business owners must manage company-specific risks while also bringing a product or service to market at a pricing point that satisfies customer demand. According to the Small Business Administration, 20% of small firms fail in the first year, 50% fail within five years, and just 33% survive for ten years or more.

Of all the countries in the world, the UK has been on the path of offering rich culture and easy set-up protocols for businesses. Therefore, it is imperative to find a country to invest in or set up a new business to provide the best environment for the company to thrive. While selecting a country, an entrepreneur must look into the business culture, etiquette, available resources, tax system, and the support provided by the government.

So, why is the UK an ideal country to start a new business?

The adage "location, location, location" applies to real estate and businesses. As any entrepreneur knows, having a fantastic concept is only the beginning of a successful business. Many other aspects, including where to start a new firm, contribute to the eventual success. So, where does the UK stand in terms of being a fantastic resource to start a business? Which European nation is ideal for investing or starting a new business?

NimbleFins, a consumer research company, has surveyed 50 European nations to determine the best places for entrepreneurs in 2020. The study used the data to compare business climate, labour quality, cost of doing business, and the country's economic health gathered from the World Bank, World Economic Forum, OECD, and UNESCO. According to the findings, the UK is Europe's second-best country for setting up new business. Despite worsening general economic indicators such as decreased GDP growth projections and GDP per capita due to the Covid pandemic, the UK remains a viable option for businesses.

Consider the following factors to understand the factors that make the UK an ideal place to invest to branch out or open a new business:

Business-Friendly Environment

The UK topped Forbes' ranking of the best nations to conduct business in 2018. The country that is one of the world's oldest democracies, a stable legal and regulatory environment provides a durable, business-friendly ecosystem to develop, trade, and invest. Corporate law and governance that are transparent and adaptable make conducting business simple in the growing economy. The UK's cultural and political assets have established a significant diplomatic influence around the world. The British government provides a variety of tax-related incentives to entrepreneurs, investors, and even employees, making the country appealing from a financial standpoint. Furthermore, the UK has one of the lowest corporation tax rates among the G20 countries, making it ideal for business investors.

Abundance of Opportunities

Ambitious entrepreneurs shall find a plethora of opportunities because of the country's affluence. The low expenses of starting a business and the UK's entrepreneurial environment contributed significantly to being popular among entrepreneurs. Due to English being one of the first languages spoken in the UK, those living in English-speaking countries and anyone who speaks English as a second language has fewer difficulties communicating and establishing business partnerships. With the exponential speed with which the start-ups are getting registered in the tech sector, the future of technical infrastructure looks promising. As an investor establishing a business in the FinTech industry, the UK can be an excellent location to start. The UK has many competent professionals, so any entrepreneur seeking to establish a business would have no problem finding the proper personnel.

Tax and Incentive Schemes in the UK

The UK has a single corporate tax that is clear and uniformly imposed where any firm with a UK address is required to pay UK Corporation Tax on its profits. Any foreign business with a UK branch or office must pay UK Corporation Tax on earnings earned in the UK. The UK does not levy a withholding tax on dividends paid by UK firms to shareholders in foreign countries. The tax system is fair, and taxpayers pay their fair share. The government complies with all international tax rules and collaborate with the OECD to combat tax evasion. Small enterprises in the UK can get tax savings under the Enterprise Investment Scheme and Venture Capital Trusts. The R&D Expenditure Tax Credit is a significant incentive for firms engaging in research and development in the UK to promote fast-growing, innovative services and products. Thus, the UK remains a popular choice among new entrepreneurs and investors.

Attracting Talent and Labour from Around the World

The effect of talent and entrepreneurial spirit in the country can be felt worldwide through the culture, athletics, and entertainment to cuisine, design, and technology. According to the Global Talent Competitiveness Index 2018, the United Kingdom is one of the top European countries for recruiting, nurturing, and keeping global talent, with a labour force of 32 million and an employment rate of about 75% (compared to a European average of 68.5%). In recent years, many start-ups in the tech industry have been established, demonstrating the country's entrepreneurial spirit, highly skilled workforce, and flourishing talent market. The UK government has also established the Global Entrepreneur Programme (GEP) to encourage ambitious entrepreneurs to expand their businesses from the UK. With this programme, the companies will utilise the talent present in the country to thrive in their respective industries.

Scope of Innovation

The UK has a longstanding tradition of the global invention that has changed the globe. British innovators and innovations have fueled the engine of global growth since the Industrial Revolution. Ocado, a leading retail company in the UK, has revolutionised shopping in recent years by utilising technology. Witnessing the impact of the COVID-19 pandemic, researchers and pharmaceutical businesses that developed vaccinations, diagnostics, and therapies have thrived because of the scope of innovation presented to the companies. History has given the country a solid platform to innovate, and the government wants it to take it forward by supporting all kinds of businesses.

Through the various schemes for the financial support offered by the UK government, businesses can be delving into innovation and are showing their dedication to world-class research and development (R & R&D). It is one of the world's most inventive countries, ranking among the top five in the Global Innovation Index 2019. The digital infrastructure network supports a software and technology industry more remarkable than the rest of Europe combined, with any major European country's most exemplary speedy broadband service.

Robust Infrastructure for the Business

The UK is ideally positioned for businesses to deliver locally and globally, from people and freight transportation to electricity and digital infrastructure. As part of the world's most significant financial and professional services cluster in the UK, the entrepreneurs will be able to access capital, clients, partners, and services. According to the World Bank's Ease of Doing Business Index, they will benefit from doing business in one of the world's most business-friendly economies. The country offers some of the most outstanding legal counsel in the world's corporate law capital. Entrepreneurs will also take advantage of the G20's lowest average 19% corporate tax rate. The UK government carved out the infrastructure strategically to help the entrepreneur open and run a business with ease.

The UK is the world's sixth-largest economy, with a GDP of $2.83 trillion. When it comes to deciding where to do business, the UK checks all the boxes. It's where you'll find all the relevant individuals, the best services, and a plethora of chances. These opportunities are a bridge that connects you to the process and procedure to invest and start your venture in the UK. The best part is that it's a ladder that will assist you to achieve your entrepreneurial goals.