Why Invest in the UK?
Why Invest in the UK?

With the UK's departure from the European Union, Brexit provides a unique opportunity for the country to reset the terms of its economic and trade relations with other countries outside the EU. In order to offset any possible negative impact of Brexit and to maximise opportunities in the global market, the Department of International Trade launched a new office, the Office for investment which is tasked with promoting inward investment opportunities into the UK - to create more jobs and prosperity across the UK. By launching this initiative the UK hopes to build its reputation as world leader in industries of the future such as technology, manufacturing, and other services.

Brexit - An Opportunity for Overseas Investors

Despite the negative effects of leaving the EU, the UK continues to attract global foreign investment and talent, thanks to its position in the world where English is the dominant language of commerce. This is also made possible by the UK's economic policy which encourages business competitiveness, investment, innovation and entrepreneurship.

Why the UK is an Attractive Choice for Foreign Investment

The UK is an attractive market for many overseas businesses forming a company - whether a subsidiary or holding company; or investing in existing, trading companies. Among the advantages of forming a company in the UK are its low tax environment for non-UK investors and its high reputation for corporate governance, well-developed legal system and its holding company regime.

One of the UK government's key ambitions has been to create the most competitive tax system in the G20. It has developed strategies to support, rather than hinder, growth and to boost investment. The government is aiming to make the UK the most attractive location in Europe for establishing and running a company. To achieve this the UK government has developed strategies to support and to boost investment, by creating an environment where:

  • There are low corporate taxes
  • Most dividend income is tax exempt
  • Most share disposals are tax exempt
  • There is a particularly good double tax treaty network to minimise withholding taxes on dividends, interest and royalties received by a UK company
  • There is no withholding tax on the distribution of dividends
  • Withholding tax on interest can be reduced due to the UK's double tax agreements
  • There is no tax on profits arising from the sale of shares in a holding company by non-resident shareholders
  • No capital duty is applicable on the issue of share capital
  • There is no minimum share capital
  • Informal tax clearances are available

Other key economic drivers that make the UK an attractive choice for foreign investment include its open economy, ease of doing business, stable business and political environment, strong digital and physical infrastructure, highly skilled workforce and cultural appeal. The UK also benefits from a developed intellectual property regime, an established common law system, compliance with the rule of law, and an efficient justice system enabling speedy dispute resolution. In addition, the UK also has prominence in key sectors such as life sciences and technology, as well as in research and development.

How InvestWise UK can help

Foreign investors can take advantage of the opportunities brought by the UK government's strong investment initiative by either investing in existing companies, by forming subsidiaries of their foreign companies, or by forming new companies. Businesses looking to set up companies should ensure that they follow the UK regulatory and legal requirements and may need to use the services of a UK based specialist company formation and company secretarial agent.

InvestWise is recognised by the Companies House, the United Kingdom's registrar of companies, as a company formation agent authorised to assist businesses to incorporate their companies in the UK. In addition to helping with company formation, we can also provide ongoing advice and assistance with compliance issues and providing human resources support. We also offer company secretarial services including corporate governance advice, annual compliance and meeting support.