Company formation in the UK has increased from the provisional estimate of 0.7% to 3.3% in Quarter 1 of 2023, with 5 116, 743 companies on a total register and 4 645, 402 on the effective register at the end of March 2023.

From January to March 2023, the total register went up by 63 462 companies and the effective register by 69 926 companies. So, the UK, with its reinvigorated global attitude post-Brexit, is attracting businessmen worldwide to be a part of its global success story.

From offering access to well-off new customers and the scope to refresh an otherwise stagnant service or product to opening up business scopes with other countries across Europe, the UK has much on offer for entrepreneurs looking to enter its marketplace. So, let’s explore the benefits of setting up a company in the UK in detail:

1. A Leading Global Business Hub with Ease of Doing Business

A leading enterprise hub worldwide, the UK has an exclusive innovation culture. Besides its thriving business and financial service sectors, the nation has nurtured 72 unicorn companies in the last 20 years, with startups reaching a $1 billion valuation.

The UK consistently produces world-leading organizations in industries like renewable energy, education, and FinTech due to the ease of doing business here. As per the World Bank, the UK scores higher in ease of doing business than other countries worldwide. It’s set up a company in UK as several scopes are available in sectors, like advanced manufacturing and IT.

Additionally, the restrictions on starting new companies in the UK are relatively lower than in other countries. Businesses in the country enjoy complete freedom from restrictive regulatory and red tape restraints. With review programs like Cutting Red Tape and Business Impact Target in place, the UK supports businesses of all sizes and varieties.

Also, its efficient company formation procedure, which takes around four days from business registration to launch, allows entrepreneurs to start up instantly.

And thanks to the country’s high average wealth per capita, recorded at 33,138.005 USD as of Dec 2022, companies in the UK can benefit from a pool of cash-rich consumers and easy trade connections with nations across Europe and the world.

2. Huge Availability of Skilled Employees

As per studies by World Population Review, the UK features a world-leading education system, and with a workforce of over 30 million skilled professionals, 2nd largest across the European Union, businesses here can greatly benefit from high-quality employees chosen for varied roles.

The United Kingdom is one of the few European nations that can experience labor supply growth in the next 15 years. Moreover, the UK has the most competitive labor costs, thanks to the social-security contributions made by employers and flexible employee protection regulations.

3. An abundance of Grants and Tax & Financial Incentives

The next benefit is the range of tax & financial incentives and grants available for aspiring entrepreneurs, which include:

Small business grants from different independent bodies.
Government grants
Apprenticeship grants
Coronavirus support plans
Air quality grant schemes
Broadband installation grants
Training grants

The UK also offers some of Europe’s most affordable tax rates, with research & development relief of up to 230% for all businesses investing in UK-based assignments. And with the corporate tax rate set at 20% in the UK, abiding by the country’s tax regulations is not a big deal for new companies in the UK.

Additionally, the country’s double taxation contracts through treaties with other nations help UK-based companies to evade paying corporation tax on foreign dividends. The UK also features VAT or Value Added Tax of 20% payable on most products and services, which can be an additional advantage for regional companies.

The United Kingdom has four venture capital schemes for investors like:

Social Investment Tax Relief
Enterprise Investment Scheme
Venture Capital Trust
Seed Enterprise Investment Scheme

Its thriving financial sector offers businessmen several scopes to secure business loans and seed funding, making the country a clear winner for aspiring entrepreneurs to grow their businesses confidently.

4. Strong Infrastructure, Robust Legal and Stable Political System

UK’s reliable and effective transportation network; world-class telecommunication system, high-speed internet; sufficient office space available at affordable rates, and cutting-edge technology make it the best destination for new company formations.

Added support comes from the country’s stable political system with a low risk of civil unrest and robust legal system, which includes a well-developed commercial court system, strong intellectual property rights, and favorable tax laws. Companies in the UK can also benefit from free legal advice through organizations such as FSB or the Federation of Small Businesses.

5. Sufficient Company Formation Help Available

Lastly, do not forget about the online and offline resources that help businessmen develop their startups. Specialist blogs and websites are available with free advice on everything related to setting up a company in the UK. Also, check the business consultancies for more personalized assistance from finance and IT to SEO and marketing.

Or, find several UK government sites containing useful information about new company formation and the rules to follow. The Companies House authorized company formation agents can help you set up a limited company in the UK, in web hosting discounts, domain names, and business bank accounts.

Conclusion

From the most talented workforce worldwide to a thriving financial hub, the UK promises several benefits for entrepreneurs looking to set up a company. Tax incentives for businessmen and flexible company formation rules further make the UK one of the best destinations to do business.