Guide: Doing Business in the UK

The United Kingdom is one of the leading business locations in the world and is home to London, one of the world’s premier financial centres.

As Europe’s second most attractive destination for new foreign direct investment (FDI) projects after France, the UK offers a rich and diverse market that attracts many international businesses.

In 2024 the UK recorded 853 FDI projects. Scotland performed particularly well – placing sixth in the best-performing investment regions in Europe, with US-based companies being the key investor in the majority of projects. Despite global headwinds, Scotland and the UK market continued to appeal as a top-tier investment destination.

A major benefit of the UK market is that companies can be established within 24 hours, and it is easy to see why so many choose to locate here. With extensive travel links, including the largest ports industry and air transport system in Europe, the UK offers proximity and easy access to customers, suppliers and partners.
The UK has a single, transparent corporation tax rate of 25% for all resident companies with profits of £250,000 or more. In Scotland, a small profit rate of 19% applies to businesses with profits of £50,000 or less. The 19% rate also applies to overseas companies with a UK branch. This is the lowest rate in the G7.

As well as providing customs and tax benefits, the UK government offers planning, infrastructure, and innovation assistance through freeports. Twelve UK freeports have been established in key strategic areas:

• Eight free ports in England (East Midlands, East Felixstowe and Harwich, Humber, Liverpool City Region, Plymouth and South Devon, Solent, Thames, and Teesside);
• Two green freeports in Scotland (Forth and Inverness) promoting decarbonisation and driving Scotland to its net zero transition; and
• Two freeports in Wales (Port of Holyhead and Port Talbot)

In 2024, Greater London 265 FDI projects, making it the top location out of 259 regions in Europe. Scotland was positioned sixth with 135 projects. Despite the overall drop in software and IT investments, this sector still dominated the market. The second-largest area of investment was transportation manufacturers and suppliers, which also includes automotive and aerospace projects. Business and professional services was also an area of focus, with 74 projects noted across the UK.
 

UK FDI projects recorded and UK market share in Europe 2015-2024

Source: EY European Investment Monitor (EIM), 2015-24).

While London continues to attract the largest share of the UK’s FDI, there are many other cities around the UK which serve as an excellent bases for setting up a business including Manchester, Birmingham, Glasgow and Edinburgh.
It is important to note that the UK is comprised of different legal jurisdictions and although there are many similarities, there are different legal and regulatory compliance requirements across Scotland, England, Wales and Northern Ireland. This guide looks at the UK as a whole while noting some important legal differentiations between England and Scotland.

This guide is aimed at businesses who are looking to expand or invest into the UK. At Burness Paull, we are passionate about supporting businesses as they establish and grow. While this guide does not constitute legal advice, it provides a high-level overview of key requirements for entering the UK market. We recognise that every business faces different challenges and complexities, and our approachable team is here to support you through each step of the process.
 

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