The UK has long been recognized for its economic dynamism, political stability and attractiveness to international investors. Situated at the heart of world trade, the country offers an environment that is conducive to the establishment and development of businesses of all sizes. Thanks to flexible regulations and an advantageous tax framework, many entrepreneurs choose England to set up or expand their businesses. This article explores the main advantages, the types of companies available and the tax framework that entrepreneurs need to comply with to take advantage of this global economy.
The advantages of setting up a business in the UK
England presents several benefits for contractors who want to start or expand their business. Here are the country's main assets:
1. limited liability protection
Shareholders' personal assets are protected against corporate debts and obligations, limiting financial risks for investors.
2. access to European markets
Although England has left the European Union, it remains a major player on the European and world markets. Numerous trade agreements still facilitate international trade.
3. a solid legal framework
England benefits from a legal system renowned for its transparency and stability, offering a secure environment for businesses.
4. tax incentives
The UK government offers a range of tax incentives and reliefs that can reduce the tax burden on companies, particularly in the technology and innovation sectors.
5. global financial center
London is one of the world's leading financial centers, offering easy access to capital, investors, banking and financial services.
6. skilled, diversified workforce
England has a highly skilled and diverse workforce, which is a major asset for companies looking for talent.
Potential disadvantages
However, there are a few challenges for entrepreneurs wishing to establish themselves in England:
1. complex tax system
The UK tax system can be difficult to navigate without expert help, particularly when it comes to VAT, corporation tax and other tax obligations.
2. high operating costs
London, in particular, is one of the most expensive cities in the world in terms of rents and running costs. Entrepreneurs need to plan their finances carefully to avoid financial difficulties.
3. strict regulatory compliance
UK companies have to comply with stringent regulatory and reporting requirements, which can represent a significant administrative burden.
4. uncertainties linked to the Brexit
Although many trade agreements have been put in place, some industries are still feeling the effects of the global financial crisis. post-BrexitThis can create uncertainty for exporting companies.
Key sectors for setting up a company in England
The country is particularly attractive to companies in sectors such as :
- Finance: London is a global center for financial services.
- Technology: The country is a leader in technological innovation, with a thriving start-up ecosystem.
- Healthcare: The UK's medical and pharmaceutical sectors are among the best in the world.
- The creative industries: fashion, film, design and advertising all benefit from numerous opportunities in the UK.
The British tax system
England offers a transparent tax system, although it may appear complex to the uninitiated. It is advisable to seek expert advice to ensure compliance.
1. corporate income tax
English companies are subject to corporation tax, at a rate of 25 % for large companies and 19 % for small companies with profits of up to £50,000.
2. value-added tax (VAT)
Companies with annual sales in excess of £85,000 must register for VAT. VAT rates vary according to the type of product or service:
- Standard rate of 20 % for most goods and services.
- Reduced rate of 5 % for certain services such as energy.
- Zero rate for products such as books and staple foods.
3. controlled foreign company (CFC) rules
England has strict rules to prevent the transfer of profits to low-tax jurisdictions. Foreign companies controlled by UK companies must comply with these regulations to avoid potential tax penalties.
England is a strategic choice for entrepreneurs seeking to develop in a prosperous economic environment. Its tax advantages, solid legal framework and access to international markets make it a prime destination for setting up a company. However, careful preparation is required to navigate the complexities of taxation and regulation.
