The UK is one of the best business destinations, with a population of over 60 million people. It is possible to run a very successful business in the UK, but this is not a guarantee that the process is an easy one.
Many native born people in the UK have made it in business, and foreigners who have come from all over the world have also started up and operated successful enterprises. There are several challenges in doing business in the UK, which should be highlighted before starting a new venture.
The process of starting a business is seen as one of the challenges of doing business in the UK. It is estimated that it takes around 13 – 15 days to fully get the authorization to start operating. A big chunk of this time is consumed in the process of registering for Pay As You Earn (PAYE) and Her Majesty’s Revenue Customs (HMRC). It is free to register, and if there is a fee, it is quite small.
The issue with all of this is that it can get quite hectic with registrations and paperwork before you finish the whole process. Depending on the type of business, there might be some additional permissions required, e.g. for medical and construction businesses.
Politics and Culture
The UK population is perceived to be quite distant and reserved as compared to many leading cultures in the world. The challenges of doing business in the UK from this perspective are that the target population might hesitate to pick up on a new idea. But on the other hand, they might turn it as a gold rush. Politically, with Brexit, the people recently chose to exit from the European Union block. Many uncertainties about the outcome of this decision still linger. It is important to take some time to study the culture and the political environment before introducing a business. It might even be a good strategy for a business to engage the services of some natives who are in a better position to understand the market.
The current tax system is quite tricky and laborious. The taxation model is quite complex, and a business may require the services of an experienced tax manager. There are different categories of taxes to be paid, from business taxes to environmental taxes, all of which must be accounted for. It is estimated that over the course of a typical year it takes around one hundred hours to complete all the paperwork obligations.
Although there are many challenges in doing business in the UK, many businesses have managed to overcome them and become altogether very successful.