If you’re looking to start or expand your company in another country, the UK is an ideal place. Reasons for this include:

1. the UK has one of the lowest corporation tax rates in the G20
2. you can register a company within 48 hours
3. the labor force is the second largest in Europe
4. the UK government offers support to start-ups and entrepreneurs, through Global entrepreneur programme and Sirius programme.

Setting up business in the UK

The Business can be set up in the UK through an easy and straightforward process. If you are expanding your business in the UK or setting up Business in the UK, there are several options about how your company and business operates in the UK.

1. You can create a separate legal entity in the form of ‘incorporating a company’.
2. You can operate as a sole trader, in which you have all the liability for company debts.
3. You can form a partnership, where you will share the risk and rewards with other partners.
4. You can register a branch of your company in the UK by registering your company in the UK.

Paying Taxes in the UK

The businesses pay corporation tax on profits, the VAT on the supply of goods and services in UK and corporation tax on capital Gain on sale of Asset.

Corporation tax

The current rate of corporation tax is 19%, it is expected to reduce to 17% by 31 March 2021. This is among lowest tax rates in G20 – the world largest 20 economies. The UK has double taxation agreements through treaties with other countries. Most of the UK companies do not pay corporation tax on foreign dividends.

Value-added Tax (VAT)

Most of the goods and services supplied in the UK are subject to VAT, Value added tax. The current rate of the VAT is 20%.

Research and Development (R&D) tax credits

The companies can claim R&D tax credits for their eligible revenue and capital expenditures. The available relief for revenue expenditure for an SME is an enhanced revenue deduction of 230% of the qualifying expenditure. Where qualifying expenditure of a capital nature is incurred on R&D, for the purposes of the trade, a 100% R&D allowance (RDA) can be claimed for the relevant accounting period.

Patent Box

The Patent box regime allows qualifying companies to elect for profits from the sale of products or services and from the use of processes which have at least one patented component, and relevant royalties, to be taxed at a favorable rate, which is 10% from 2017.