Considerations for company formation in United Kingdom
For years London has been and still is considered as the most representative destination where to establish business and keeps the status of biggest finance centers in Europe, where are based 5.5 million businesses in the private sector.
Decision of possibly leaving the European Union could impact British local businesses to consider leaving the territory and face with economical drop. Notwithstanding the uncertainty of the impact of raising changes, United Kingdom corporate tax, low bureaucracy and new market development is highly favorable for Companies located in Central, Western and also North European countries.
The title of the biggest financial and economical centers of Europe won’t be snatched so easily from United Kingdom, particularly London, which opens doors to successful development by conquering new markets.
Corporate tax rate for UK companies is already more lucrative than other European countries and with the presumption of leaving the EU, UK Government has developed a plan to reduce the tax rate to 15%.
Clients who have established their business in UK benefits from the low tax rate comparing to their home jurisdiction and gains the advantages of the popularity of created business in United Kingdom ,that has leaded signing successful new business contracts in the field of maritime, food chain and IT and web marketing.
By our experience, based on profit increase rate, the businesses of these fields have benefited most from expanding their business in UK:
- Consulting services;
- Web Marketing & IT services;
- Real Estate planning.
The advantages of company formation in United Kingdom
- Low tax burden
Low corporate taxes and competitive rules for taxing the profits of multinationals attract the biggest global enterprises to the UK. The UK’s corporation tax is 20 percent, by far the lowest in the G7 and the joint lowest in the G20. This rate will fall even further — to 19 percent in 2017 and 17 percent in 2020.
The World Bank rates UK’s tax system as the most business-friendly of the ten largest economies in Europe, both in terms of rates and administrative burdens.
- Market opportunity
Over 64 million people live in the UK — a major market in its own right. But it is also the gateway to Europe, the world’s largest single market with more than 500 million consumers. You don’t pay any duties when importing/exporting within the EU, and benefit from simplified administrative procedures. You also benefit from free or preferential trade arrangements with many non-EU countries.
- London — business capital of Europe
London hosts 40 percent of the European headquarters of the world’s top 250 companies. Its nearest rival is Paris, with only 8 percent. London’s dominance is even greater for the non-European giants among these 250 companies — three out of five have chosen London as their base.
- Labour Market
The UK’s labour force of 32 million people is the second largest in the EU. The size and strength of our skills base has attracted some of world’s largest multinational companies to locate in the UK including Microsoft, Hitachi, Nissan, Coca-Cola, Motorola, Sony, Ford and Johnson & Johnson.
Please contact us, to obtain more information about United Kingdom corporate structures and your possibilities to localise your company in United Kingdom.