UNITED KINGDOM

ABOUT UNITED KINGDOM

United Kingdom at a Glance
The UK is the leader of foreign investment in Europe. The UK is a hotbed of activity for foreign investment in Europe, especially from American companies. The UK offers vast business opportunities for investors. Low labor costs and high returns make it an attractive investment destination.

The easiest place to establish and run a business is Europe: According to a World Bank study, it takes only 13 days to establish a business in the UK. The World Bank has ranked the UK first in Europe and sixth in the world to operate business
An internationally competitive tax environment for foreign investors: the UK has the lowest corporate tax at 28 percent which is the lowest in the G7. The highest personal tax bond at 40 percent is also the lowest in the EU.
Most Flexible market in Europe: According to a World Bank report, the UK stands at second place to employ workers.
Least barriers to entrepreneurship: OECD has identified the UK as second in the world for Product Market Regulation. It also ranks second for the least barriers to entrepreneurship and third for the least barriers to trade investment in the world.
Stable Political Environments: Transparency International rates the UK high on the transparency list. The UK is the country with the least corruption in the world. It achieves a higher rating in comparison to the US, Japan, Germany and France.
Leading Financial Center: London which is world’s largest financial center is situated in the UK.
Population: 60.8 million
Form of government: Unitary parliamentary constitutional monarchy
Official & spoken languages: English (spoken Scots, Welsh, Cornish, Gaelic)
Currency: Sterling Pound £
Time zone: UTC 0
GDP (PPP): $ 2.548 trillion
GDP (PPP)/per capita: $ 39,762
Public debt: £1.56 trillion (82% of GDP)
Average salary: £26.500/year
Unemployment: 5.2%
Major trading partners: US ($66.5 billion), Germany ($46.4 billion), Switzerland ($32.2 billion), China ($27.4 billion), France ($27 billion), Netherlands ($26.6 billion)

Doing Business in United Kingdom
Advantages in Doing business in the UK

Company law – UK company has an excellent reputation worldwide, with English law forming the basis for company law in many countries worldwide. Incorporating in the UK couples legal flexibility with clear governance rules in one of the world’s largest and most reputable trading economies
Taxation – Dividends received from an EU resident underlying company will be free of withholding tax under the EU parent/subsidiary directive. UK has over 100 double taxation treaties including the US, Japan, China, Germany, France, Singapore and Canada. These treaties provide several advantages to support business with UK headquarters, particularly the reduction of withholding tax on dividends.
Simple to manage – Foreign entrepreneurs wishing to register a UK company can easily handle the administration remotely as Companies House allows many fillings made online. A UK private companies requires only one director and one shareholder.
Disadvantages in Doing business in the UK

No more corporate directors – UK companies may only appoint individuals as directors from October 2015. Previously, corporate directors were permitted as long there as at least one individual director on the board. All existing corporate directors must be removed from boards of UK companies by October 2016
Privacy – Companies registered in the UK are required to keep a list of “people with significant control” (PSCs), which effectively makes beneficial ownership information public. The threshold for considered a PSC is 25% beneficial ownership. There is also a public register of directors and shareholders.
VAT – Value added tax (VAT) is charged on the value of supplies of taxable goods and services made in UK, including some exports to European Union countries.

Residence & Moving to United Kingdom
Expats moving to the UK do so for various reasons. Whatever your motivation may be, your move to the UK holds the advantage that you won’t need to learn a new language from scratch. InterNations has lots of useful information on moving to the UK, from life in London to UK visa regulations.

Many of its characteristics make moving to the UK an attractive option. As a business destination, the United Kingdom, composed of England, Scotland, Wales, and Northern Ireland, has one major asset which outweighs its counterparts in other European countries with similar living standards and working conditions: the language. After all, English is the international language of business and trade taught in schools across the globe.

The UK is a densely populated country, with a considerable share of its roughly 64.5 million people living in the south of the UK. Just over 80% of the UK’s population consists of city dwellers. Great parts of Scotland and Northern Ireland are less urbanized and less affluent leading to people leaving for the UK’s southern regions.

London — The Center of Everything

The country’s capital, with 8.6 million inhabitants being by far the largest city in the UK, is the seat of the national government. It is also the leading financial and commercial center of the EU: in 2014 London hosted 40 percent of the European headquarters of top companies worldwide.London is truly multi-cultural with people moving to the UK’s capital from all over the world, and generally an exciting place to be. Its vibrant arts and entertainment scene caters to all tastes, from classical to popular, mainstream to fringe, and from retro to avant-garde. Needless to say, the party animal in you will not be disappointed.

Despite its size, London’s green spaces make it quite a pleasant place to live. The soaring prices for property, however, are one of the reasons why many families — even those with an above-average income — prefer to live in the suburbs of Greater London when moving to the UK.

Taxation in United Kingdom
Residence – A company is UK resident if it is incorporated in the UK or its place of central management and control is in the UK

Basis – A UK resident company is subject to corporation tax on worldwide profits and gains, with credit given for overseas taxes paid. Foreign profits and losses (including those from certain capital assets) arising from a permanent establishment (PE) of a UK resident company may be excluded by making an irrevocable election. The effect of the election may be deferred where the PE has incurred a loss. Anti-diversion rules based on the CFC rules may restrict the profits that can be excluded from the charge to UK tax by virtue of the election. A non-resident company is subject to tax only in respect of UK-source profits, which include the income of a UK PE of the nonresident, income and certain gains from UK real estate, certain UK-source interest income and gains on assets used for purposes of a PE’s trade.