April 23, 2024 Expanding globally
In 2022 the UK was the fourth biggest exporter in the world, rising from seventh place in 2021. In doing so the UK has overtaken France, the Netherlands and Japan; now sitting on the global export table behind only China, the USA, and Germany.
Interestingly, the UN Trade and Development statistics show that whilst the perception of the UK might be as a provider of services rather than goods, in 2022 as in previous years the export of goods outstripped services, albeit this time by a small margin of 51.31% to 48.69%. The statistics reveal that the UK is the largest exporter of insurance and pension services as well as telecommunications services, and the second largest exporter of financial services and professional business services. And an 8% rise in services exports did help the UK’s leap up the overall export tables. But this was more than matched by a 14% rise in the export of goods.
The UK’s position in the global marketplace is underlined by the fact that in 2022 it was also the fifth largest importer, with goods leading the way at 71.39% of total UK import trade. This makes the UK an important hub both for import and export and one which international organisations may well wish to explore. Setting up a base in the UK is not difficult but, as with any country, there are certain rules and regulations which companies need to comply with. Understanding those regulations and the options available could help international organisations to structure their investment in the UK in a way which best meets their overall objectives.
For example, whether an organisation opts to open a UK branch, set up a subsidiary in the UK, or buy an existing UK registered company could have implications not only for how it is taxed and managed but also for how it is able to trade both within the UK and internationally. Understanding the options at the outset could help to avoid potentially costly mistakes further down the line. Overseas entities also need to consider whether any holdings may be subject to the Register of Overseas Entities regime.
Working with clients from more than one hundred countries, Elemental is perfectly positioned to help international entities to optimise their UK base. Offering an integrated corporate secretarial, governance, accounting and tax advisory service, Elemental is also the number one regulated agent by market share in delivering a Register of Overseas Entities service.
