Company formations in the UK – why would you?
Now that the electioneering for the European elections is well under way it is well worth remembering the benefits of setting up a business and forming a company in the UK.
The global economy is more fluid, more dynamic than ever before. In this environment, the UK has fundamental strengths which make it a great place to do business. The UK is a magnet for foreign investment and international company formations. Numerous companies have already chosen to set up in the UK because of its record of success, confidence, ambition and know-how. A climate of creativity makes for innovation in science, finance, design and the arts.
The UK has a well-established legal and regulatory framework and a flexible labour force. Its multicultural population stimulates diversity of thought and talent. It has a global business culture that plugs companies into an international network. The UK offers ease of access to many overseas markets. It has an open, transparent and business-friendly system to encourage the formation of new businesses. The World Bank ranks the UK as one of the top European nations in which to operate a business. It takes only a few days to set up a business in the UK.
The Government aims to build on these fundamental strengths to achieve sustainable growth, and maintain the attractiveness of the UK to inward investment.
To this end, the Government is seeking to:
· Create a competitive tax system.
· Make the UK the best place in Europe to start, finance and grow a business.
· Create a more educated workforce that is the most flexible in Europe.
· Encourage investment and exports as a route to a more balanced economy.
UK companies represent two of the top 10 European Cities for foreign direct investment:
The use of the UK as a hub location is becoming increasingly popular amongst international businesses and we are seeing a growing number of businesses centralising functions in the UK.
For example we are seeing a number of overseas businesses looking to centralise functions in the UK to take advantage of changes being introduced to make the UK a competitive European hub location from a tax perspective, together with other benefits such as:
· Versatile, robust and proven UK legal framework.
· Skilled workforce and a culture of excellence.
· Strong communications links.
· Political stability.
· Access to capital markets.
· Lower relocation costs.
· Highly reputable British educational institutions for family members.
· An increasingly favourable and stable tax landscape.
· Relative ease with which different types of pension arrangements can be established.
· Option to bring a business partner under the one visa using the same investment funds.
· Ability to bring existing employees from abroad to work in the UK.
The drivers for change are varied and can include; taking advantage of an efficient and straightforward overseas structure, the need for a flexible and tax efficient vehicle for growth, to manage efficiently group value drivers outside the home country, or a combination of them all.
Brian Lee, managing director of London Incorporations commented, “Many of our clients have done the hard part, by creating a business that offers a product or service that people want to buy. Their businesses may have already started expanding into new territories, or are looking at export for the very first time. When it comes to the UK as a new market, many of our clients appreciate our help in not only establishing their presence in the UK, but also helping them on an ongoing basis with all the complexities of filing and regulation that are required. It allows our clients to entirely focus on their day-to-day job of making their companies successful”.
Whilst companies will still need to adhere to strict UK disclosure and reporting rules, organisations such as London Incorporations which can provide accounting, payroll and company secretarial services look to be well placed to meet this new emerging demand.