The government stimulates investment.
Good business relies on having a sound relationship with the government. The UK remains true to centuries’-old traditions and at the same time introduces progressive methods of stimulating foreign direct investment.
Easy to start your business and get government support
In the UK, entrepreneurs have access to a higher standard of possibilities. Companies from Russia, Ukraine and other Eastern European countries are entering the market, who are looking for a stable environment for development. Entrepreneurs, from the start, benefit from doing business in the UK for various reasons:
- the lowest corporate taxes in the G20 countries;
- company registration online in just 24 hours;
- opening a representative office of a foreign company within 4 weeks;
- The second largest labour market in Europe;
- 65 million potential consumers of products and services;
- government advice on investment and business development.
The government gives access to private sector mentoring and financing programs. This support helps integrate into the local market.
Business Clusters and Industrial Zones
The government helps to ensure that new businesses locate in the most advantageous areas throughout the country according to their required markets. . Small or new companies are offered spaces to rent, or for SMEs (Small to medium enterprises), are offered new-build offices; they are even assisted with expansion or reconstruction of their premises. Local authorities approve 90% of applications, 75% of which are fully implemented within three months.
Another opportunity for development is placement in business clusters. At the outset this provides several advantages:
- easy access to labour resources;
- improved supply chain;
- sharing knowledge, ideas, research and development.
Industrial sector enterprises are offered space in high production areas. In England and Wales, about 50 zones operate and are planned, 16 in Scotland and several in Northern Ireland.
Locating in these areas makes it easy to start and establish production, planning processes and revenues. The business can use a prepared infrastructure that helps reduce costs.
Simple taxation to stimulate business
In the UK, there is a transparent tax system that is constantly being improved. The fifth most powerful economy in the world retains its power and attractiveness for investors during periods of global geopolitical changes.
Basic tax rates:
- corporate tax – 19%, in 2020 it will decrease to 17%;
- value added tax (VAT) – 20%;
- Patent Box for patented inventions and innovations – 10%.
It’s easier to understand the UK taxation system and assistance is provided to help navigate it. The government cooperates with consulting and auditing companies that provide feedback to businesses.
To encourage SMEs, there are special investment schemes and venture capital trusts. Participation in programs helps entrepreneurs increase revenue and expand their business.
Participation in charity projects, jobs for retirees and people with disabilities are encouraged by tax breaks.
Such attractive conditions are valid for all companies, regardless of the period of work in the UK. New businesses receive additional incentives for development and expansion.
At the same time, investment in 31 sectors of the economy – from aerospace technology to creative industries – is encouraged. Companies of any size can find a place in the market and enjoy the benefits of doing business in the UK.