Doing business

United Kingdom

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Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
Private Limited Company (Ltd) No minimum. In practice, the minimum subscribed is GBP 1. Totality of the capital must be released.	No minimum Liability is limited to the amount contributed.
Public Limited Company (Plc) Minimum GBP 50,000 totally subscribed, obligation to release 25% at the constitution.	No minimum Liability is limited to the amount contributed.
Partnership No minimum capital.	At least two partners Partners' liability is joint and indefinite
Limited Partnership No minimum capital.	At least two partners Liability is limited.
Unlimited Company No minimum capital.	No minimum. Partners' liability is joint and several

Business setup procedures

Setting up a company	United Kingdom	OECD
Procedures (number)	6.0	5.6
Time (days)	13.0	13.8

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in United Kingdom.
Trade Register
The competent organization: Companies House

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	91,487	71,140	45,908
FDI stock (millions USD)	980,920.3	1,056,399.0	1,086,143.1
Performance Index*, ranking on 141 economies	78	73	-
Potential Index**, ranking on 141 economies	8	-	-
Number of Greenfield investments***	873	1,036	-
FDI inwards (in % of GFCF****)	20.5	29.0	-
FDI stock (in % of GDP)	36.8	51.7	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest the United Kingdom

Strong points: One of the United Kingdoms main strong points is the speed of formalities: only thirteen days are required to set up a company in the United Kingdom, compared to the European average of 32 days, which puts the country in first place in Europe and sixth place in the world. Low taxation makes the environment investor-friendly. London is the world's leader in terms of financial services centers, on a number of key performance indicators and was once again voted best European city by the European Cities Monitor, which studies the appeal of cities .
Weak points: The country's main weak points are: the financial sector's excessive influence on the GDP, poor quality infrastructures and a high level of competitiveness from foreign companies in the industrial sector.
Government measures to motivate or restrict FDI: Once foreign companies are established in the UK, they are treated exactly like British firms. Within the EU, the British Government is a strong defender of any British registered company's rights, irrespective of its nationality or the nationality of its owner.
Bilateral investment conventions signed by the United Kingdom: The UK has concluded 106 Bilateral Investment Treaties (BITs) with other countries, of which 94 are in force. More information is available on the website of UNCTAD.

Procedures relative to foreign investment

Freedom of establishment: Foreign companies establishing British subsidiaries generally encounter no special nationality requirements on directors or shareholders, although at least one director of any company registered in the UK must be ordinarily resident in the UK.
Acquisition of holdings: In the United Kingdom, a majority holding interest in the capital of a local company is legal.
Competent organization for the declaration: Companies house

Finding assistance for further information

Investment aid agency
Other useful resources