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Joining the entrepreneurial ecosystem in the United Kingdom offers tremendous opportunities to bring your innovative business ideas to life and establish a presence in the global market. Being part of this ecosystem not only helps grow your business but also provides access to international networks and a strong support system for entrepreneurs. In fact, this is precisely why we decided to carry out our new international accelerator program in London.
The United Kingdom provides a dynamic environment that offers entrepreneurs extensive networking and funding opportunities, while its generally supportive policies deliver significant advantages. In addition to its robust start-up ecosystem, the UK remains an attractive hub for innovative businesspeople worldwide through tax incentives, grants, and visa programs.
These opportunities are a key consideration for companies planning to expand abroad. If you are planning to establish a business in the UK, you will likely be interested in the main types of taxes, available exemptions, and visa programs offered to entrepreneurs.
Tax System and Advantages
Corporation Tax
- Limited companies in the UK pay corporation tax on their net profits.
- The tax rate ranges from 19% to 25%, depending on the company’s annual income.
- Tax payments must be made 9 months and 1 day after the end of the company’s financial year.
Value Added Tax (VAT)
- From April 1, 2024, businesses with an annual turnover exceeding £90,000 must register for VAT.
- The standard VAT rate is 20%, with reduced rates applicable to certain goods and services.
Research and Development (R&D) Incentives
The UK offers tax relief to support R&D expenditures:
- Small and medium-sized enterprises (SMEs) can claim up to 230% tax relief on qualifying expenditures.
- Large companies can also claim R&D tax credits based on eligible R&D costs.
Entrepreneurs’ Relief (Business Asset Disposal Relief)
- Entrepreneurs can benefit from capital gains tax rates as low as 10% when selling their business.
- This relief provides a significant advantage for entrepreneurs who meet the eligibility criteria.
Investment Incentives (SEIS & EIS Programs)
- Under the Seed Enterprise Investment Scheme (SEIS), investors can claim income tax relief of up to 50% of the invested capital.
- The Enterprise Investment Scheme (EIS) provides income tax relief of up to 30%.
Visa Options for Entrepreneurs in the UK
The UK offers various visa programs for technology entrepreneurs and innovative business owners. However, the well-known Startup Visa has been discontinued. Some alternative visa options for entrepreneurs include:
- Global Talent Visa (Digital Technology): Designed for top global tech leaders, entrepreneurs, and experts.
- Innovator Founder Visa: Suitable for entrepreneurs with innovative and scalable business ideas.
- Scale-up Worker Visa: For individuals looking to work in rapidly growing companies, subject to eligibility criteria.
- High Potential Individual (HPI) Visa: Offers graduates from globally recognized universities the opportunity to work and search for jobs in the UK.
Market Expansion Programme: Our UK Accelerator
To help entrepreneurs enter the UK market more quickly and effectively, we offer a dedicated accelerator program called the Market Expansion Programme in partnership with Yıldız Teknopark. Some of the opportunities offered by this program include:
-Direct access to investors
-Support for rapid adaptation to the UK business ecosystem
– Mentorship and networking events to grow your business
– Participation in London Tech Week
– Office space usage throughout the program
This program is designed for innovative entrepreneurs aiming to establish a business in the UK, with a particular focus on technology and innovation-driven startups.
Strategic Steps for Establishing a Business in the UK
-Analyze your business model and target market.
-Learn the tax obligations and available incentives in detail. (Stay in touch with us!)
-Follow the visa application processes and select the most suitable option. (Stay in touch with us!)
-Obtain legal and accounting support for business setup in the UK. (Stay in touch with us!)
-Accelerate your market entry by joining programs like the Market Expansion Programme.
The UK continues to be a global hub for entrepreneurship, offering advantages for innovative business ideas and technology ventures. If you are planning to establish a business in the UK, you can evaluate tax benefits, investment opportunities, and visa programs to find the best path forward.
We wish you success on this long journey of internationalization!
Don’t forget to follow us, as we will soon announce new plans to make this process even easier!