The end of the transition period for the UK in the Brexit process finishes on December 31st and 2021 hails the start of change for both the EU and the UK. In the light of all this uncertainty, many foreign entrepreneurs are now asking: why should I set up in the UK post-Brexit? What are the advantages of setting up and forming a UK limited company now?
Despite the whole Brexit debacle, the British economy is resisting; London still remains the financial hub of Europe and is the European home to almost 60% of companies on the Fortune 500 listing. Additionally, The United Kingdom maintains a fairly strong currency, despite its downward trajectory of late and the country still remains one of the most important consumer markets within the continent.
The question on everyone’s lips is whether Brexit will give non-UK businesses an advantage, and indeed an added opportunity, with the potential hurdles and challenges that exiting the EU will bring. So, bearing this in mind, let’s consider a few plus points about setting up in the UK.
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Setting up a limited company in the UK is very quick. A company can be set up in 24/48 hours from submission of compliance documents while the European average for setting up a business is somewhat longer, sometimes running into weeks.
Doing business in the UK is extremely easy and business processes are flexible when compared with the equivalent processes within EU companies. The UK economy is one of the most liberal within the European continent and actively encourages FDI (Foreign Direct Investment). The legal framework is among the most flexible in the world. Before the Covid-19 pandemic hit, the unemployment rate was one of the lowest within the EU economies.
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Many business owners are looking at having a foot in both UK and Europe to expand their trading opportunities and to limit the headaches that could potentially occur with added paperwork. That’s not to say that these issues will be completely avoided, but in terms of difficulties at customs there could be some advantages in having a British stamp on your company. It may also have an impact on GDPR, accounting and reporting, employing staff and freight delivery to name but a few.
Brexit, in combination with the recent pandemic, has shot through the whole of continental Europe not just the UK. Getting ready for Brexit before it actually happens may be the single most defining decision that your company does this year.
For more information on opening a company in the UK, or for help in opening a business bank account or advice on tax, please contact us on 0033 (0)1 53 57 49 10 or email us from our contact page and we’d be delighted to help you.
