When you are considering an international expansion, understanding local practices and market regulations can make a huge difference to your initial experience and ongoing success. This is especially true the United Kingdom (UK), as doing business in the UK comes with some unique benefits and challenges.
1. Despite Brexit, doing business in the UK is still a valuable proposition for many organisations. Plenty of opportunities exists for businesses that want to leverage the benefits of the UK’s new position as an independent nation.
2. The UK has a rich and diverse population and a huge workforce. This can deliver significant benefits to your business.
3. Clearly defined worker protections make it much easier for businesses to make sure that they are meeting all their obligations under employment law, such as minimum wage and providing holiday pay.
4. The UK has a relatively complicated tax system made up of various regulations and laws. It is therefore important to make sure you have plans in place for achieving compliance before you start doing business there.
Despite all the goings on of the last recent years because of Brexit—which has now completed: the UK officially left the European Union on January 31st, 2020 at 11:00 pm GMT—the UK is still an attractive investment opportunity for many overseas organisations. In 2017, it was the world’s sixth-largest economy with a nominal GDP of $2.638 trillion.
And it’s not just in England, other ‘constituent countries’ of the UK such as Wales, present a strong business proposition.
While it continues to represent an attractive investment proposition, it is still important for investors to carry out careful planning before doing business in the UK. Understanding local market regulations, best practices, laws, and customs can go a long way to not only protecting your commercial operations from legal penalties but also allowing them to succeed.
In this article, we are first going to look at some of the key benefits and challenges of doing business in the UK. We will then quickly look at all the things unique to doing business in the UK that you need to consider if you are hoping to expand your operations and employ people.
5 Benefits of Doing Business in the UK
There is a reason why so many international corporations choose to do business in the UK.
Often, it is the first economy businesses will expand to outside of their home countries because the UK provides access not only to an affluent and educated populace but also the potential to do business with other countries across Europe even despite Brexit.
For more information on the impact Brexit has on UK and European expansion see Three Benefits of Global PEO for EU Companies After Brexit.
Here are five key benefits of doing business in the UK:
3 Challenges of Doing Business in the UK
While the benefits of doing business in the UK far outweigh the drawbacks and challenges, it is still important to think about them. Here are three important ones:
UK Labour Laws and Employment Protections
If you are still considering doing business in the UK, you need to know about key labour laws and employment protections. These are strictly enforced and there are schemes and processes that exist to catch out and heavily penalise employers who breach them.
Getting Started with Your UK Expansion
There are so many more things that you need to think about if you would like to expand to and do business in the UK.
Strict laws surrounding grievances and dismissal, maternity and paternity leave, different tax rules for certain industries, and more all have their part to play, and how they apply to your business will depend on its unique circumstances and how you plan to operate.
It makes sense to partner up with a global professional employer organisation (PEO) like New Horizons Global Partners. Our expert consultancy, employer of record, and payroll services can provide your business with everything that it needs to begin trading in the UK and meet the minimum compliance standards.
With help from our experts, you could be trading in the UK in as little as 48 hours and could stand to save up to 82% in expansion costs.
Get in touch with our team today to find out how our UK PEO and UK Employer of Record services could help your expansion.