Why set up business in the United Kingdom?
The UK is a global superpower for business and innovation
A market of more than 60 million people, a world-class talent pool, a highly accessible language and an open, liberal economy. There are many reasons why international companies naturally choose to scale and grow their business in the UK. For tech and innovation companies in particular, the UK’s economy has a proven track record of driving growth and success.
With a rich and diverse market of world-class industries – including business, professional and financial services, creative and digital technologies, manufacturing, life sciences and healthcare, low carbon and more – the UK offers a highly attractive proposition for international investors.
There are numerous incentives established designed to help businesses scale and flourish, which investors can take advantage of whilst knowing the UK’s world-leading legal system is designed to support and protect the interests of individuals and businesses.
Home to a globally recognised talent pool
The UK is the leading European economy in attracting global talent and boasts one of Europe’s largest labour forces. Moreover, the UK offers lower labour costs when compared to European countries including France, Germany and Italy.
Consistently recognised as a centre of academic excellence, the UK attracts talent from over 200 countries across the world. Of the 2.86 million students studying in the UK during the 2023/2024 academic year, 787,000 were from abroad.
Companies investing in the UK can access graduates from four of the world’s top ten universities, which is further supported by strong links between our academic institutions and business. With 920,000 graduates a year, the UK is renowned for its high-quality education, world-class R&D facilities and a highly skilled talent pool.
The UK’s skilled workforce reflects our strong history of innovation and entrepreneurship, with a growing presence of start-ups and scale-ups across a multitude of sectors. It is the number one location in Europe for unicorn companies, continuing to lead the way in innovation, with the country ranked 4th as a global innovation leader in the Global Innovation Index 2023.
Benefit from a fair, competitive tax system
With multiple tax incentives and low business costs, the UK provides flexibility to both domestic and international companies looking to invest.
Cost is king in the global economy, and the UK Government has recognised this with multiple reliefs and incentives designed to support those looking to invest in the UK, making it the most attractive destination to start, finance and expand a business in Europe. Leading schemes include:
- Enterprise Investment Scheme (EIS) – Encourages investment in SMEs (small and medium-sized businesses) by providing tax relief to investors.
- Seed Enterprise Investment Scheme (SEIS) – The SEIS offers tax incentives to those looking to support early-stage startups.
- Venture Capital Trusts (VCT) – The VCT are tax-based venture capital schemes designed to help smaller, higher-risk companies raise finance.
- Research and Development (R&D) tax relief – Designed to support companies working on innovative projects within the science and technology sectors.
The UK Patent Box
Additionally, the UK is also home to the Patent Box. This incentive encourages further innovation and investment in R&D by offering a reduced corporation tax of 10% on profits from inventions patented in the UK.
These incentives, amongst many others, make the UK a highly desirable destination for international investors.
Connectivity and infrastructure in the UK
With an integrated system of airports, seaports, roads and rail, businesses investing in the UK enjoy a multitude of ways to move talent, goods and services between major cities and regions across the country and internationally.
The UK’s planned high-speed rail line, Europe’s largest infrastructure project (HS2), will connect key economic destinations, making access even easier and further supporting our modern and reliable rail network connecting UK cities and towns. With the 2nd largest urban rail network in Europe, the UK’s rail system also provides access to major cities within mainland Europe via the Eurostar rail service.
With over 70 airports, the UK provides access to over 180 countries worldwide, including almost all of Europe’s leading technology markets. This proximity allows for exciting collaboration and innovation opportunities.
Additionally, investing in the UK means investing in a country whose digital infrastructure ranks in the top 10 globally. The UK is one of the leading countries for broadband coverage in Europe, with 97% of it supported by superfast broadband, allowing business and innovation to flourish in an environment that provides connected, superfast and reliable access to the rest of the world.
A clean growth and sustainability leader
Since becoming the first major economy to adopt a legally binding obligation to reach net zero by 2050, the UK has established a world-leading proposition for investors within the clean growth economy.
Aligned with global efforts to combat climate change, this proposition builds on wider strengths including a strong scientific research base and strong financial and tech industries. Investment opportunities now exist across renewable energy, zero-emission vehicle technologies, green finance, sustainable consumption, and infrastructure amongst others.
With ambitious government policies including a ‘Ten-point plan for a Green Industrial Revolution’ which has already created 68,000 jobs and £22bn in private investment, and the ‘Energy security strategy’ which will accelerate the deployment of wind, new nuclear, solar and hydrogen power, the UK is unlocking significant public investment across energy, buildings, transport, innovation, and the natural environment. Investors can also take advantage of export opportunities made available by low-carbon technologies and services.
A global innovation leader
Steeped in history and culture that has seen the creation of the telephone, the World Wide Web, the jet engine, and more, the UK continues to be one of the most innovative countries in the world.
Currently ranked 4th as a global innovation leader in the Global Innovation Index 2023, businesses thrive in the UK with a record 900,000 new companies being established in 2023 – an increase of 12% from 2022.
Home to a technology sector valued at $1 trillion – the world’s third largest and the largest in Europe – the UK is at the forefront of cross-cutting digital innovation.
With the UK Government setting a goal of becoming a ‘Science and Technology Superpower’ by 2030, there has been a rapid increase in the adoption of new technologies to do this. Artificial Intelligence, Immersive Technologies, Quantum, Cyber Security, 5G, Industry 4.0, and many others are now more prominent within the UK. Research incentives across academic institutions, initiatives in public and private sector organisations, and an ever-growing talent pool allow businesses to develop the next generation of products and services.
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