Despite the ongoing debates surrounding Brexit, the UK remains one of the best places for international companies to do business. As we move further into the 2020s, many businesses outside the European Economic Area (EEA) are looking to expand into the UK. One of the most reliable ways to do this is by setting up a branch office in the UK. In this article, we’ll explore the advantages of opening a UK branch office and how it can help your business grow.
Why the UK Continues to Attract Global Businesses
Even amid Brexit uncertainty, the UK remains a top destination for investment. Billionaire investor Warren Buffett, despite the political noise around Brexit, has openly stated that he would continue investing in the UK. According to him, the UK’s business system is one of the easiest for international investors to understand and trust.
This sentiment is shared by businesses worldwide. For example, the number of Indian companies operating in the UK grew by 5% from 2018 to 2019, with Indian businesses contributing £48 billion to the UK economy. Additionally, a survey by global consulting firm EY ranked the UK as the most attractive destination for business investment, surpassing even the United States.
These examples show that, despite challenges, businesses are confident in the UK’s ability to support long-term growth and success.
Advantages of Setting Up a UK Branch Office
1. A Business-Friendly Environment
The UK is known for being one of the most business-friendly countries in the world. According to Forbes, it ranks as the top country for business out of 161 nations, thanks to factors such as property rights, innovation, tax policies, and infrastructure.
2. Access to the World’s Largest Trading Block
While the UK’s exit from the EU has created some uncertainty, the country still benefits from strong trade agreements with the EU and other global markets. The UK and EU have agreed on a comprehensive Free Trade Agreement that ensures continued access to a market of over 500 million consumers.
3. Financial Powerhouse
London remains one of the world’s leading financial hubs. It is home to the largest gold and silver markets and offers ample opportunities for business funding. In 2018, UK businesses received a record £6.7 billion in equity investment, making it an attractive place for growing businesses.
4. Option for Wholly-Owned Subsidiaries
When setting up a UK branch, international businesses also have the option of establishing a wholly-owned subsidiary. This allows businesses to operate as a separate legal entity with limited liability, and it can open doors to raising funds through share sales or stock market listings.
5. Access to Innovation and Talent
The UK is home to many thriving innovation hubs, especially in technology, research, and development. By establishing a presence in the UK, businesses can tap into these resources, collaborate with leading experts, and take advantage of training, funding, and research opportunities.
Representative of an Overseas Business Visa
For companies outside the EEA, the UK offers a straightforward immigration route to bring key staff members to the country. The Representative of an Overseas Business Visa is designed for individuals who will be the main representatives of their company’s UK branch. The visa is granted for an initial 3 years and can be extended for an additional 2 years. After 5 years in the UK, the employee may apply for permanent settlement.
Key eligibility requirements for this visa include:
- Proof that the parent company is based outside the UK.
- The individual must have industry experience and knowledge to represent the company in the UK.
- The visa holders can also bring dependent family members with them.
Once the UK branch is established, businesses can also apply for a Sponsor Licence to bring more employees to the UK under the Tier 2 Intra-Company Transfer Visa scheme.
The UK is an excellent destination for companies from outside the EEA looking to expand. It offers a welcoming business environment, access to a large and diverse market, financial opportunities, and a straightforward process for setting up a branch office. With the right support, your business can thrive in the UK.
How Law and Visas Can Help?
At Law and Visas, our team of expert immigration consultants is here to make your travel to the UK straightforward and successful. Whether you’re applying for a Business Visa or an Immigrant Investor Visa, we handle every step—from preparing your application to gathering the required documents.
Our immigration lawyer consultants and Lawyers ensure that your application meets the highest standards, with no details missed. We’ll also keep you informed throughout the process, coordinating with the immigration office or embassy on your behalf.
Law and Visas has a strong record of helping clients secure the visas and permits they need for international travel. Call us today at +234 812 5505 986 to learn how we can assist you.
