Introduction
The proliferation of companies and public corporations in the UK continues, comprising 74.4% of the country’s total businesses. Among them, the professional, scientific, and technical sector remains dominant, constituting 15.6% of all registered businesses. England and Wales jointly lead in registered companies, boasting 4,578,267 businesses, marking a 3.8% increase from 2021. Scotland follows with 242,251 registered companies, a 2.2% rise, while Northern Ireland reports 73,838 registered firms, a decline of 4.8%.
Regarding forms of businesses, in 2022, over half of the UK’s private sector is divided between sole proprietorships (56%) and self-employed businesses. Between 2021 and 2022, the number of companies increased by 16,000 (0.8%), while sole proprietorships decreased by 69,000 (2%) and ordinary partnerships decreased by 32,000 (8%).
Regarding location, from 2021 to 2022, there were 1,014 businesses per 10,000 resident adults in the UK. London stands out with 1,452 businesses per 10,000 residents, marking the highest density among UK countries and English regions.
Why is the UK a great place to expand your business?
Here are the main reasons why the UK is one of the best places globally to start a high-growth business
Ease of process
In a turbulent post-Brexit, post COVID economy, you might be having second thoughts about running a new business here. Although uncertainty isn’t an excellent environment for a new business, it doesn’t mean not getting to know how business is there.
The United Kingdom is one of the most accessible places to set up and run a business and one of the cheapest. The British government is focused on improving entrepreneurship. This means more funds are available for younger entrepreneurs who may not be able to self-fund their startups.
Aside from being quickly set up and having a low rate of corporation tax, there are other reasons why this country is still the best place to set up a company; Brexit or no Brexit!
Accessibility
There are lots of countries in the region that still eagerly communicate whit the United Kingdom;
The UK Government and the European Commission agreed to a Trade and Cooperation Agreement (TCA) enabling tariff-free passage of goods. New economic markets were created with their own regulatory conformity frameworks, which will have an impact on product conformity assessment, product marking, and market access.
This means for market access to Great Britain (England, Wales & Scotland): The United Kingdom Government will continue to recognize the CE Mark for existing products placed onto the GB market until 1 January 2022, and any new products from 1 January 2021 require the new UK Conformity Assessed (UKCA) Mark issued by the United Kingdom Approved Body for goods placed on the market in Great Britain. The UKCA marking covers most goods that were previously subject to the CE marking. The UKCA mark cannot be used for goods placed on the EU or NI market.
For market access to Europe (including Northern Ireland): The EU will continue to require products to be CE marked to gain entry for sale in mainland Europe, on the basis that the mark is issued by an EU-based Notified Body.
For market access to Northern Ireland: If businesses are using a UK Body to conduct mandatory third-party conformity assessment, they will need to apply the UKNI marking from 1 January 2021. UKNI marking cannot be applied on its own – it always accompanies an EU conformity marking, such as the CE marking.
Flexible labor laws
The United Kingdom offers a compelling advantage to businesses through its notably flexible labour laws, setting it apart from other European nations such as France, the Netherlands, and Germany. This flexibility is evident in several key aspects, illustrating how UK labour laws facilitate business operations:
- Reduced Labor Costs: The UK’s labour laws contribute to lower labour costs than many European counterparts. This cost-effectiveness can be a pivotal factor for businesses seeking to maximise operational efficiency and profitability.
- Diverse Employment Arrangements: In the UK, businesses have the flexibility to engage various types of workers, including “workers,” “employees,” and “self-employed contractors.” This diversity allows companies to tailor their workforce to specific needs, fostering adaptability in response to changing circumstances.
- Dynamic Labor Market: The UK’s reputation for a dynamic labour market is well-deserved. Its labour laws facilitate quick adjustments to evolving business conditions, empowering employers to scale their workforce up or down with relative ease. This adaptability is especially valuable in industries characterised by fluctuating demands.
However, while the UK’s labour laws offer significant flexibility, they also incorporate stringent worker protections. These protections include overtime work, paid time off, and holiday labour. This robust framework serves as a boon for employers, providing clarity regarding legal requirements and minimising the potential for unexpected compliance issues. This predictability ultimately contributes to the satisfaction of both employers and employees alike.
In essence, the UK’s labour laws balance flexibility and protection, creating an environment conducive to business growth. This balance empowers companies to optimise workforce strategies while upholding essential worker rights, fostering a harmonious and productive working relationship.
Trading and regulation
The UK, particularly in sectors like financial services, maintains stringent regulations. Therefore, careful attention must be given to compliance when contemplating business expansion. This includes obtaining the necessary licenses and permits to operate within the legal framework. Adhering to the Financial Conduct Authority (FCA) guidelines is paramount in the financial sector. These regulations ensure business legality and bolster the trust and confidence of customers and partners.
Simple taxation system
The taxation system of the UK is characterised by its remarkable simplicity, setting it apart from the complexities found in other nations. This simplified tax framework makes the UK an enticing destination for business activities, particularly those venturing into the global workforce, where intricate tax laws pose significant challenges. Several advantageous tax provisions within the UK include:
- Competitive Corporation Tax Rate: As of 2022, the UK imposes a corporation tax rate of just 19%, which notably stands as the lowest among all the G20 countries. This low rate enhances the country’s attractiveness for businesses seeking favourable tax environments.
- Exemption from Withholding Tax on Foreign Dividends: Most companies headquartered in the UK benefit from an exemption on withholding tax for foreign dividends. This exemption alleviates the burden of additional taxation on earnings from overseas investments, promoting international economic engagement.
- Tax Relief and Incentive Programs: The UK government supports business growth through tax relief and incentive programs. These initiatives catalyse innovation and expansion by providing financial advantages and rewards for companies contributing to the nation’s economic development.
Easy application process
While you are obliged to be present in order to complete and do your application tasks to start and register in other countries, feel free to stay in your headquarter where ever it is and register your business here!
So, there’s no need to travel to the United Kingdom to initiate your documents or notary any of your documents. You only have to be there to open a bank account.
Qualified and skilled employees
The United Kingdom has always been one of the most popular countries for students all around the world. The education system and universities attract a wide array of talent who look for work in this country after completing their degree. The high number of international students coming to British universities gives businesses a larger pool of talent to hire from.
The government’s apprenticeship schemes are another way of finding the right person, especially if you’re on a startup budget.
Besides all the advantages mentioned above, you might want to have a consultant with our lawyers in the UK, to ask more and run your business in this country as soon as possible, and also you may want to read:
Indian and Pakistani Lawyers in the UK
Iranian Lawyers in the UK
Best cities to start a business in the UK
The following cities offer unique advantages and opportunities for entrepreneurs and startups in different sectors.
- London: London is a global city with a thriving economy, particularly in tech, finance, and retail. It offers extensive support for startups, including numerous accelerators and co-working spaces. Startupbootcamp Fintech London Accelerator provides mentoring from seasoned investors.
- Manchester: Manchester is becoming a tech and digital business hub with over 1,000 tech companies, including Man Group and Zendesk. TechFest, a renowned technology conference, attracts global attention with influential speakers.
- Bristol: Bristol is known for its diverse economy and burgeoning startup scene, driven by a robust creative and digital sector. The city’s efficient transport system facilitates business growth.
- Birmingham: Birmingham, the UK’s second-largest city, is emerging as a leading tech and digital business centre. It’s home to prominent companies like ASOS and Betfair, alongside a thriving community of startups.
- Glasgow: Glasgow boasts a dynamic creative and cultural scene and houses successful startups like Skyscanner. Initiatives like CodeBase and a thriving arts scene contribute to its startup growth.
- Edinburgh: As the capital of Scotland, Edinburgh attracts entrepreneurs with its vibrant festivals and supportive startup community.
- Brighton: Brighton appeals to startups due to its vibrant arts scene and growing tech sector. Co-working spaces like WorkBrighton offer flexible options and networking opportunities.
- Leeds: Leeds, the UK’s third-largest city, is gaining recognition as a startup hub with opportunities in tech, finance, and retail.
- Liverpool: Liverpool, known for its trade history and the Beatles, is emerging as a digital city. It has a thriving startup community and is recognised by Cisco Systems.
- Sheffield: Sheffield’s economy is thriving, with a focus on advanced manufacturing and innovation in tech fields. It’s considered one of Europe’s top cities for tech startups.
- Cardiff: Cardiff, the capital of Wales, is known for its affordable office space and a growing startup ecosystem. It’s well-connected and offers opportunities for students.
- Cambridge: Cambridge is an innovation hub with a lower cost of living than London. It offers startup support in the tech, finance, and retail sectors.
Conclusion
The UK proves itself to be an attractive hub for business expansion. Even in the wake of Brexit, its accessibility to most of Europe provides unparalleled market access. Notably, the UK government’s initiatives ensure a business-friendly atmosphere, allowing you to initiate and register your business without leaving your headquarters. Moreover, the country’s robust education system attracts a diverse international talent pool, providing you with a skilled workforce. With apprenticeship schemes and various avenues to find the right employees, the UK is an ideal destination for budding entrepreneurs. In the world of business, the UK continues to shine, Brexit or no Brexit, reaffirming its status as a prime location for business expansion.
Frequently asked questions
How can I find a suitable location when starting a business in the UK?
Selecting the right location is a crucial decision for any business. Your chosen location impacts accessibility, customer reach, and, ultimately, your business’s success.
Consider proximity to public transportation to ensure easy access for customers without cars. A central location can enhance accessibility throughout the town or city.
What are the factors to consider when opening a physical store for your business in the UK?
When embarking on the journey of starting a business, selecting an ideal location becomes paramount. This decision hinges on several crucial factors:
- The location’s size must align with your business’s needs, ensuring it accommodates your operations comfortably.
- Consider the rental costs, as these will significantly impact your budget. Equally vital is evaluating the expenses tied to stocking your inventory.
- Assess staffing costs, encompassing salaries, bonuses, and benefits for your employees.
Accessibility is another pivotal aspect; assess the availability of customer parking and explore options for providing it if necessary. Furthermore, security must be addressed, focusing on safeguarding the premises during non-operational hours through access controls and surveillance systems. This multifaceted evaluation process will guide you in finding the optimal location to launch your business successfully.
