The Most Profitable Business Sectors in UK

Thanks to relaxed tax policies or to the ease of forming businesses, the UK has become a hub for entrepreneurs from all over the world. Nonetheless, it is necessary to know in advance which economic activities are most interesting in this country from an economic point of view. Therefore, in this article I explain the most profitable business sectors in the UK.

Why Should You Start a Business in the UK?

There are several reasons why entrepreneurship in the UK is especially attractive. On the one hand, the tax burden on companies is lower in comparison to other countries, especially the European Union members.

On the other, the process of incorporating enterprises with the Companies House is fast and affordable. The paperwork may be only 24 hours long and the fees the directors must pay are lower than in neighbouring nations.

In addition, the British authorities have signed different trade agreements with countries on other continents. Thus, for businesses engaged in the import and export of products, establishing themselves in the UK can be beneficial for their economic activities.

Which are The Most Profitable Business Sectors in the UK?

Fintech Sector

The Fintech sector (which stands for financial technology) is one of those that produces the highest profitability in the UK, especially in London. This city has become a global hub of this sector. It emerged about 10 years ago, but since then, it has experienced a rapid growth all around the world.

In this field, companies offer financial services to other enterprises or consumers in several subfields: payment technology, wealthtech, credit and lending technology, digital currency and online banking, among other aspects.

After the appearance of artificial intelligence, experts expect its integration into the sector. This would make possible to further enhance this economic activity, especially in the area of automation of investments. On another note, companies will need to provide innovative cybersecurity and risk management solutions. This is done in order for the customers and investors to trust the corporation.

E-commerce

In recent years, e-commerce has seen its demand increase exponentially. Thanks to platforms like Amazon or website builders like Shopify, it’s now easier than ever to set up a digital shop.

The business model of dropshipping stands out. This consists of acting as an intermediary between a manufacturer or wholesaler and the customer. It has multiple benefits for the entrepreneur. For example, since there is no stock, they will not need any warehouses. Moreover, the necessary investment is minimal. With an internet connection, a website building software, a computer and social media accounts to promote the articles will be enough.

If you opt for a “traditional” model, you will have to take into account several factors. These include the optimization of logistics and the production chain or the shipment of goods, among others.

Food Delivery Apps

Similarly to e-commerce, in recent years there has been a boom in food delivery apps. Experts estimate that more than 60% of British adults use this type of software.

There are certain requirements that directors should meet to ensure the success of the business. You must find a niche market that any rival covers. Another thing to consider is offering a secure and smooth payment process. However, the most important thing is to guarantee fast deliveries. This is done to ensure that the food arrives in good conditions to the customer.

Renewable Energies

The UK has committed to achieve the target of net zero emissions by 2050 and to reduce them by 2030 by 68%. This has allowed to propel clean and renewable sources of energy generation. These are solar, wind, hydroelectric or geothermal.

Companies in this ambit shall not only limit themselves to the installation of solar panels and wind turbines. They can also offer consulting services to other businesses on energy efficiency or investigate how to produce new affordable biofuels.

Lastly, regional and national governments offer numerous financial subsidies to corporations in this economic area.

In ukstartcompany, you will find information about how to establish, register and operate companies with different legal structures and business activities in the UK.