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Team Divantage
- November 28, 2021
What makes the UK Europe’s leading investment destination for companies relocating and developing their global business? Why is it so easy to set up a business in the United Kingdom?
We look at the top reasons that set the UK apart from other countries. We also included a list of the best cities that you should consider when setting up a business in the country.
Easy to set up a business
The easiest place to set up and run a business in Europe. Why? You might ask. Well, The World Bank found that it takes 13 days to set up a business in UK, compared to the European average of 32 days. It ranks the UK first in Europe and sixth in the world to operate a business. Source: World Bank
Better taxation
Low tax rate environment for foreign investors: The top corporate rate will be 28 per cent from April 2008, below most of the UK’s core competitors. The UK has reduced its corporate tax rate from over 50% in the early 1980s down to one of the lowest in the industrialised world. The UK’s highest personal tax band, at 40 per cent, is one of the lowest in the EU. Source: Forbes Tax Misery Index.
Flexibility
One of the most flexible labour markets in Europe: The World Bank ranks the UK the second best place in Europe to employ workers. In fact, the UK has a workforce of more than 30 million people, which is the second largest workforce in the European Union. The UK is also one of the only European countries expected to have labor supply growth in the next 15 years.
In addition to having many qualified workers, the UK has a flexible market with regulations designed to protect employees. As an employer, this should be viewed as a benefit. You can follow pre-established rules and regulations that improve the life of your team members.
Also, labor costs in the UK are the most competitive in Western Europe considering the lower employer social security contributions. In fact, the UK’s overall cost of labor is lower than countries such as France, Ireland, Netherlands and Germany.
Great opportunities
Due to the UK being such an affluent country, there is an abundance of opportunities to be had for aspiring entrepreneurs. Low costs associated with setting up a business, combined with the UK’s entrepreneurial environment contributed greatly to the country’s high ranking. English is also the first language spoken here, so communication is made easier with other parts of the English speaking world as well as with those whose second language is English.
The UK is a particularly great place to start your business if you’re operating in the financial sector. London serves as the central hub for European finance, being home to banks such as HSBC and Barclay’s headquarters. There is an abundance of skilled workers within the financial sector in the UK, so any entrepreneur looking to start a business would have no trouble in employing the right people there.
Financial aid schemes
As previously mentioned, the UK is considered one of the best places to start a business due to its low start-up costs. Further to this, the British government also provide several schemes that offer advice, grants, and tax benefits for new start-ups. Each area in the UK has its own application process and criteria for applying.
One of the most popular grants is through the Regional Growth Fund programmes. These are run by local or national organisations, and you can apply if you’re looking for funding of less than £1 million. There are many opportunities for small businesses within the UK, which is perhaps why it continues to be the chosen business destination for many new entrepreneurs.
A choice of cities
Though London is undoubtedly the centre of it all, there are many cities up and down the UK that have truly come into their own in the past few years – making them more appealing to new business owners. Between Manchester, Leeds, Bristol and Oxford, there are endless opportunities to start a successful business in an up-and-coming city while avoiding the high prices of London. Manchester, in particular, is frequently referred to as the next best thing to London. The reasonable standard of living combined with business growth opportunities has turned it into an extremely viable option for entrepreneurs.
Top Places for Starting a Business in the UK
London
Let’s start with the obvious, shall we? As one of the world’s most visited cities, it’s no surprise the UK capital is riding high on our list. The iconic city is responsible for approximately 30% of UK GDP and is a major player in both national and international finance. London also thrives when it comes to media, technology, and tourism.
Milton Keynes
With a thriving economy that includes key players within the scientific, professional, retail, and technical sectors, Milton Keynes offers SMEs a great chance to thrive, with a 41.91% five-year survival rate. Several national and international brands all reside in Milton Keynes, including Argos, Mercedes-Benz, Domino’s Pizza, and Suzuki.
Southampton
Over a quarter of the jobs available in Southampton are in health and education, while the city is also something of a hub for property, wholesale, and retail businesses. Southampton has a strong 39.29% five-year start-up survival rate and is noted for its diverse population.
Manchester
Manchester became the world’s first industrialised city, thanks to the boom in textile manufacturing, and has never looked back since. Today, the city boasts the third largest population in England and makes a significant contribution to creative industries, science and engineering, music, art, and sport.
Sheffield
Sheffield has evolved past the decline of its once dominant steel industry to become one of the best cities for UK start-ups. It is a major destination for employment within the sport and public sectors and is notable for its advanced technologies within manufacturing.
Bristol
Bristol has transformed from a flourishing port city into one of the most profitable economies in the UK, thanks largely to its efforts within IT, financial services, tourism, art, and sport industries. It was also named a science city in 2005 due to its significant contribution towards innovation.
Choosing a prime location that’s convenient for carrying out your services and catering to your customer base plays a crucial factor in the long-term success of your business; it’s all about balance.
If you’re unsure which path to take or how to manage your relocation issues, contact us! Our experts will answer your questions and give you a proper guidance in your further career steps.