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By juan
- In Uncategorized
ADVANTAGES AND DISADVANTAGES OF SETTING UP A COMPANY IN THE UK
We encourage you to discover the advantages and disadvantages of setting up a company in the UK here.
Maybe you consider expanding your business and diversifying geographically. The UK is one of the main places you should consider.
CONTENTS
1 PRELIMINARY CONSIDERATIONS
2 ADVANTAGES OF SETTING UP A COMPANY IN THE UK
3 DISADVANTAGES OF SETTING UP A COMPANY IN THE UK
4 CONCLUSION
1 PRELIMINARY CONSIDERATIONS
After Brexit, one might think that the balance of the advantages and disadvantages of setting up a company in the UK shows a negative landscape full of obstacles and difficulties.
However, the reality is different. The dividends that you can obtain after setting up a company in the UK go beyond the purely economic.
This is because the UK provides a sociopolitical context free from volatility and a business culture based on values such as seriousness, commitment and quality. Thus, doing business in the UK is profitable and pleasant.
2 ADVANTAGES OF SETTING UP A COMPANY IN THE UK
2.1 Favourable Business Framework.
The United Kingdom provides a favourable environment for starting up companies, with flexible, transparent and reliable rules and regulations.
Part of this flexibility is reflected in the many different types of companies in the UK to choose from.
2.2 Tax Incentives
The United Kingdom values entrepreneurship very highly and tries to encourage entrepreneurial endeavour.
For this reason, there are several deductions that companies in the UK can take advantage of.
2.3 Competitive Taxes
Furthermore, Corporation Tax, which is the rate of tax paid by companies in the UK, is lower than in most European countries.
Similarly, the other taxes paid by companies in the UK are also moderate and the UK has international tax agreements with many countries, including agreements to avoid double taxation.
2.4 Ease of Administrative Procedures
Administrative procedures are carried out digitally. They are agile and intuitive, which facilitates business management.
2.5 No Need To Be a British Citizen
Due to its open commercial nature, it is possible to set up a company in the UK as a foreigner and it does not involve too many additional steps.
In the same way, in many cases it is not necessary to be a resident and it is enough to provide a local address for your company.
2.6 International Recognition
The UK has an excellent worldwide reputation in the business world. This is one of the great advantages of setting up a company in the UK.
By doing so, companies that are set up in the UK acquire this prestige and are perceived as solid, serious, cutting-edge and respectable.
2.7 Access to international markets
This is another of the advantages of setting up a company in the UK that you will be interested to know about. Especially if your company is involved in the import or export of products, as the UK has free trade agreements with many countries.
3 DISADVANTAGES OF SETTING UP A COMPANY IN THE UK
3.1 Exchange rate fluctuations
Doing business in other currencies involves an exchange risk, as they can have a high impact on profitability. This could also work in your favour if your local currency increases in value against the pound.
However, it is advisable to adopt the necessary measures to cover the currency risk. Consulting with specialists is always a good idea.
3.2 Regulatory compliance costs
In order to comply with UK regulations, it is necessary to keep accurate and detailed accounting and financial records of your company’s operations.
Initially, hiring accounting and legal advice services may involve additional costs until you have in-depth knowledge of UK accounting methods and tax regulations.
3.3 Difficulties in obtaining credit
New companies in the UK lack a track record that would allow their solvency to be assessed, so they may have difficulty obtaining financing.
4 CONCLUSION
As we have seen, among the advantages and disadvantages of setting up a company in the UK, the positive aspects outweigh those that could be a drawback.
The UK is a strategic platform on which to lay the foundations for the expansion of your business, especially if you if you have professionals nearby to help you.