Despite the evident appeal, any business looking to expand into the UK market can face complicated laws, confusion related to tax brackets, and other challenges of starting a business in the UK.
The UK is home to one of the world’s leading business markets, according to the World Bank in their latest “Doing Business” survey. The UK ranks high in terms of ease of doing business and it has an internationally competitive tax rate for firms that are developing. Despite the obvious benefits, there are challenges of starting a business in the UK. Here are a few of the most notable you should be aware of if you are considering entering this market:
The Brexit Affect
As it stands, it looks like Britain will start its exit from the EU in 2019. The plan includes a transition period ahead of its exit, but if Britain were to leave Europe without a conclusion to cross-sector trade negotiations, this could pose risks. If any future trade relationships include barriers to trade, the UK economy will likely struggle to keep up with wider growth trends.
Launching a Company
In the UK, a company can generally be formed and incorporated within 48 hours, but it can take an average of 13 days to complete all administrative requirements. Any foreign investors planning to launch a company in the UK or expand into the UK, should know that accounts of all companies in the UK are subject to public disclosure through what is referred to as the Registrar of Companies.
Registering a property can be the most arduous of challenges of starting a business in the UK. According to the World Bank and International Finance Corporation, this process can take up to six procedures and approximately 22 days to complete.
Electricity Set Up
UK Power Networks is responsible for all electricity connections. This process can take up to 100 days and will likely involve submitting any plans, getting inspections completed, and waiting for any external connection processes to be completed. Selecting a supplier of electricity can also be tricky.
Ease of Getting Credit
The UK ranks at the top in the world in terms of ease in obtaining credit. The strong and stable financial market and diversified nature of getting credit in the UK gives startup businesses or businesses looking to expand the access to funds they may desperately need. Selecting which type of credit is best for the business, however, can be one of the greatest challenges of starting a business in the UK.
The tax system in the UK is known for being extremely confusing, mainly because the nation’s legal system has been formed and adopted in parts at different periods of time. It can take approximately 110 hours per year to complete the needed tax obligations, which may involve anything from labor charges to corporate fees or environmental and sales taxes. Hiring someone local to help with these steps may be a critical need.
Proper Setup of Communication Systems
Having proper, reliable, and cost-effective means of communication in place is essential for any business, but particularly for one that is planning to expand to a foreign nation. The purchase of virtual phone numbers, whether toll free numbers or local numbers, can likely play a key role in establishing good communication systems. Purchasing toll free numbers and offering your new customer base, as well as any other business-related contacts, a way of communicating with you that is cost-free is essential.
United World Telecom offers both local virtual phone numbers and toll free virtual phone numbers for both business and personal use. Purchasing vanity toll free numbers may help further with marketing initiatives in the planned expansion and launch of your business in the UK market.
Despite the possible challenges of starting a business in the UK, the advantages of this strong and thriving market outweigh any possible difficulties and careful steps in the process will ensure a more rapid path to success.