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Setting up a business in UK: advantages and features

Have you ever thought of expanding your business overseas or run a new one in UK? Well known fact is that England offers wide business opportunities with minimum bureaucracy and low costs. 


UK business environment has significant benefits. The majority of these are based upon taxation regulations. What is more, there are other advantages showing low level of bureaucracy for entrepreneurs in United Kingdom.


Anti-bureaucracy for entrepreneurs

According to statistics of World Bank, Doing Business project, the time required to start a business in UK in 2017 amounted 5 days, compared to average world figure of 20 days. The world average cost of business start-up procedures estimated 25 % of GNI per capita whereas in UK it is zero cost.  And finally the number of start-up procedures to register a business in UK was 4 in comparison to 7 in the world last year.


Taxation benefits

In comparison to the rest of G20 countries, UK is a region of low tax. ​It has competitive tax rates applicable for both companies and investors:  

  • Extensive reliefs for early stage businesses
  • Option of a remittance basis of taxation for non-UK domiciled individuals who come to the UK, for example as holding company directors
  • Corporation Tax will decrease following Brexit
  • Attractive tax regime for international companies as UK has the largest network of double tax treaties in the world
  • Globally unique capital gain tax relief scheme for investors                                                               

    Ex. The Seed Enterprise Investment Scheme (SEIS), encourages investment in new startups by providing private investors with 50% of investments (up to £150,000) back in income tax relief. 

Value Added Tax (VAT) - until the annual turnover of a company reaches £85,000 you are under no obligation to pay VAT. Although you can still register voluntarily as this allows you to claim the VAT on your business expenses back. For small companies with an annual turnover of less or equal to £150,000 the VAT Flat Rate Scheme was introduced. This allows to pay HM Revenue and Customs a flat percentage of sales depending on industry, which often amounts to less than the standard VAT rate, but still allows you to charge clients at 20%. As an additional incentive to immediately register your UK-based holding company for the Flat Rate, you will be granted a 1% discount during your first year from VAT registration.


Company's registration services

With the help of experienced professionals of MN Consulting you will save your time, avoiding mistakes and extra costs while establishing a company for the first time in UK. We could advise you which type of the company (sole trader, limited company or partnership) to chose, whether you business needs licenses / permits / insurance or how to apply for a discount on business rates on property. MN Consulting is ready to provide you full range of services associated with setting up your company in UK including registration in Companies House, opening bank account or search of office premise.


Whether you run a start-up, set a holding company or looking for a project to invest - UK is a beneficial business hub.

We are looking forward to seeing you at our office in central London to discuss more how we could help you establishing in UK.


Anna Maximova, PhD in economics