In recent times, people and entrepreneurs around the world have expressed their fears when it comes to establishing their businesses in the United Kingdom. This has largely been fuelled by the uncertainty brought about by Brexit and the possible consequences it may bring on local corporations.
Contrary to popular belief though, establishing a business in the UK may now be the perfect time to do so and this article aims to highlight certain benefits and opportunities within the UK business environment for both local and international entrepreneurs and investors.
Firstly, to address the elephant in the room here, the Brexit deal that has recently been finalized, and also included the UK-EU Trade and Cooperation Agreement (UK-EU TCA), basically puts at ease many of the fears expressed by the business world within the country. In fact, the UK-EU TCA guarantees that no tariffs will be imposed on firms exporting to the EU but also guarantees a level-playing field for UK companies with no barriers of entry, that will allow them to fairly compete the same way as before within the European markets, if they choose to. Even more important though, is the fact that the UK’s exit from the EU gives rise to new opportunities for entrepreneurs as trade deals between the UK and other countries and new markets begin to solidify. The beneficial access to these potential new markets is something that would otherwise be impossible due to the European Union Regulations.
As important as it is to understand the pros of Brexit for UK entrepreneurs, there are other factors just as important when it comes to the efficiency, flexibility, and overall benefits of the UK business environment. For instance, the UK corporate tax rate is at the moment set at 19%. This is significantly lower than the worldwide corporation tax average of about 24% and even lower compared to countries such as France and Germany that have corporate tax rates of 26.5% and 30% respectively. Additionally, the United Kingdom, and in particular its capital city London, is a worldwide leading financial centre. Particularly, Venture Capital Funding is extremely popular and constantly on the rise throughout the UK, making it the ideal place for start-ups and innovative businesses that are seeking the right amount of funding at a low cost. If this is not enough for a potential investor to be persuaded, the United Kingdom is host to some of the highest ranked universities worldwide. Universities such as the University of Oxford, Cambridge University, the London School of Economics and Imperial College London are only a few examples of the worldwide-leading universities situated in the UK which allow local corporations to have access to a large pool of highly skilled labour in every industry imaginable.
Finally, when it comes to the efficiency of setting up a company within the UK, the process is incredibly fast. If an entrepreneur chooses to set up their business online through the government website, their business can be set up within 24 hours. Making the process even easier is the fact that the only requirement for setting up a company is that the company provides a registered address within the UK.
What is important to understand here, is that this article only highlights a few important benefits that the UK business environment provides to potential entrepreneurs and investors and this list is by no means a comprehensive one. Without a doubt, the United Kingdom has maintained an exclusive, innovative and worldwide competitive environment for entrepreneurs to thrive in and this is exactly the reason why countless multinational organizations have chosen the UK as a base for their business operations. As corporate legal advisors, our advice to both new or existing entrepreneurs would be that the UK could be the choice of location for their business operations, taking into consideration the current environment and the potential benefits and opportunities available in the UK.
The content of this article is valid as at the date of its first publication. It is intended to provide a general guide to the subject matter and does not constitute legal advice. We recommend that you seek professional advice on your specific matter before acting on any information provided. For further information or advice, please contact us at info@kyprianou.com
