Why recently many businesses are saying that UK is no longer a viable option in terms of economy and taxation?
In recent years, the Netherlands has become a more attractive choice for entrepreneurs and investors looking to set up a company, for a number of reasons.
There are a few reasons why setting up a company in the UK may not make sense anymore.
- The UK has left the European Union: Businesses that operate in the UK will now be subject to different regulations and taxes than they were before. This can add complexity and costs to doing business in the UK.
- The UK economy is facing uncertainty: The UK is currently in the midst of a cost of living crisis, and there is a lot of uncertainty about the future of the economy. This can make it difficult for businesses to plan for the future and invest in growth.
- The UK is not as attractive a place to do business as it once was: Other countries, such as Ireland and the Netherlands, have become more attractive to businesses in recent years. These countries offer lower taxes, a more favorable regulatory environment, and a more skilled workforce.
- Increased regulations and taxes: Since leaving the EU, the UK has implemented a number of new regulations and taxes that affect businesses. For example, the UK now has a digital services tax, which is a tax on the profits of large online companies. The UK also has a new points-based immigration system, which makes it more difficult for businesses to hire skilled workers from outside the EU.
The Netherlands is the next best choice for setting-up a company near the UK
Geographical proximity
The Netherlands is situated close to the UK, making it an ideal location for businesses that want to maintain strong ties with the UK market while also gaining access to the European Union’s vast consumer base. The proximity allows for easier travel, communication, and logistics between the two countries.
Access to the EU single market
By establishing a company in the Netherlands, businesses can take advantage of the country’s membership in the European Union. This means that they can benefit from the EU’s single market, enabling them to trade freely with other EU member states without facing additional tariffs or barriers.
Business-friendly environment
The Netherlands is renowned for its business-friendly policies, transparent legal system, and well-developed infrastructure. It offers a supportive ecosystem for startups and established companies alike, with various incentives, tax breaks, and grants available to encourage innovation and entrepreneurship.
Multilingual workforce
English is widely spoken in the Netherlands, making it easy for UK businesses to communicate with their Dutch counterparts and recruit skilled talent proficient in English. Additionally, many Dutch citizens are multilingual, which further facilitates business interactions with international partners.
Strong logistics and transportation networks
The Netherlands boasts world-class ports, airports, and a well-developed transportation infrastructure. This facilitates efficient shipping and distribution of goods not only within Europe but also worldwide, making it an attractive location for companies with global ambitions.
Access to a skilled workforce
The Netherlands is known for its highly educated and skilled workforce. It’s universities and vocational institutions produce a talented pool of professionals in various fields, making it easier for businesses to find and hire qualified employees.
Favorable tax environment
While tax policies can be complex and subject to change, the Netherlands has historically offered competitive corporate tax rates and tax incentives for specific industries. This can lead to potential cost savings for businesses operating in the country.
Networking opportunities
The Netherlands has a thriving business community, offering ample opportunities for networking, partnerships, and collaboration. The presence of numerous international companies and organizations creates a dynamic and supportive environment for business growth.
Conclusion
The Netherlands is a more attractive location for company formation than the UK due to its business-friendly environment, straightforward registration process, favorable tax policies, well-developed infrastructure, and gateway to the European market.
FAQ’s
The Netherlands offers favorable tax rates and incentives for businesses, including a lower corporate tax rate (currently 25%) compared to the UK’s corporate tax rate.
The Netherlands has a well-established legal system that is business-friendly and has specialized courts for resolving commercial disputes efficiently.
Yes, the company registration process in the Netherlands is known for its efficiency and can be completed relatively quickly.
The cost of living and doing business in the Netherlands is generally lower than in the UK, making it an attractive destination for entrepreneurs.
