I’d like to tell you that recently, I got together with our Allinial Global partners in Washington, and among them with Andy Coghlan, CEO from Wilkins Kennedy (WK Corporate Finance LLP), whom, without exaggerating, is the biggest financial and business consulting group in United Kingdom.
And obviously, in virtue that in the last weeks we have heard a ton of opinions about Britain’s future, I didn’t lose the chance to ask our British partners about their position on the “Brexit” case.
“Personally, I would not like to enter into a political comment. Better yet, I prefer to answer you with the reasons why I consider that Great Britain will be a great business after this new social-political stage”; he answered with that unmistakable London accent.
Perfect, Andy! So what would you say to the investors that would like to make businesses in United Kingdom, or, in another European country but through Great Britain?
“In economic terms, the United Kingdom Is and will still be the most solid economy from Europe, and if you’ve been aware, you have notice that in the last three years the growth tendency has been upwards.
In fact, the GDP from United Kingdom is expected to grow during 2016 and 2017 to an average of 3%; which could position us to compete directly with the growth rhythm of the United States that is estimated to grow on a slower rhythm.”
I get it! So, which has been the investment tendency in the last years?—I asked.
“The foreign investment in United Kingdom has been the highest in decades, because even in 2015 the country got the 39% of the total merges and acquisitions of businesses in all Europe.”
Awesome! And, in your opinion, which could be the fiscal benefits from doing business in United Kingdom?
“For starters, we have the lower corporate rates from the G-20, because while in United States and Mexico the companies have a rate of the 40.46% and 30% respectively; the companies from United Kingdom have a fiscal rate of the 20% and it will be reduced to a 17% in 2020.”
But, Andy, surely you must have a fiscal punishment at the moment when the company located in United Kingdom charges or pays dividends overseas.
“Not at all! In fact in United Kingdom there is no such thing as the withholding tax when a British Company pays dividends, and in the majority of the cases there is no tax when the Company receives dividends from a foreign source.”—he answered.
Wow! No doubt all those elements will keep making the United Kingdom attractive to consider it as the headquarters to do great businesses.
GLOBALIZATION AND FINANCIAL SECURITY
If you want to know more about expansion models through business structures located in the United Kingdom or the European region; don’t doubt in contacting us, and gladly we’ll attend you.
Florentino Elizondo; Esq., CPA.
President & Managing Partner
DEC / ICBA
Member of Allinial Global