The United Kingdom (UK) of Great Britain and Northern Ireland comprises England, Scotland, and Wales (Great Britain) and Northern Ireland. The country is situated on the British Isles — a large group of islands lying off the north-western coast of Europe and separated from the continent by the English Channel and the Strait of Dover in the south and the North Sea in the east.
The United Kingdom is ranked 9 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings.
According to the World Bank, UK is the easiest place to set up and run a business in Europe: Here it only takes 13 days to set up a business while the European average is 32 days. According to the same source, the UK ranks first in Europe and sixth in the world to operate a business.
The United Kingdom has one of the most developed and extensive infrastructure systems in the world. The UK has some of the world’s busiest ports such as London, Glasgow, Manchester, and Portsmouth. The nation has 498 airports, of which 357 have paved runways.
The Private Limited Companies limited by shares.LTD (Limited Company) is the most popular type of company in the UK. This type of business entity is suitable for business owners intending to generate profit with their newly formed companies. The reason why the Private Limited Company platform is so popular is that it allows profits to be shared by the shareholders while restricting financial liabilities
UK Private Limited Companies enjoy several benefits like:
- One Shareholder: Only one shareholder is required who can also be the sole director.
- No Minimum Share Capital: Shares can have any value even as low as £1(GBP).
- No Required Meetings: The government does not require any type of meetings to be held.
- One Director: At least one person to be a director, who can also sit as a shareholder and the optional secretary role.
- Secure Political and Legal Systems: UK’s political and legal systems have been consistently secure for centuries.
Having 110 bilateral treaties, the United Kingdom has one of the best tax treaty networks in the world.
According to OECD, the UK has one of the highest GDP growth rates in Europe, well above the European and Eurozone averages.
The corporate tax rate is 19 percent, but the rate can fall to zero for R&D. In addition, the legislation has been enacted to decrease the rate of corporation tax to 17%, effective from 1 April 2020.
The standard rate of VAT increased to 20% on 4 January 2011 (from 17.5%) a reduced rate of 5% applies inter alia to domestic fuel or power, heating equipment, children’s car seats, some contraceptives and sanitary products, and certain residential property renovations. Some products and services are exempt from VAT, eg postage stamps, financial and property transactions.
Flexible business practices combined with a highly skilled and mobile workforce offer many of the economic ingredients necessary to successfully conduct business in the United Kingdom