Start a Company in the UK

UK vs. US Startup – Is It Better to Start a Company in the UK or the US?

Every person needs money. It’s essential to pay the bills and to have a decent life. That being said, while getting a job somewhere seems like the easier solution, more than half the people in the US prefer starting a business instead. It’s better to be your own boss. Moreover, starting an online business is easier than ever. 

That being said, English-speaking natives have two options here: they either start a business in the US or go for the UK instead. Both have their advantages, but which one is the most convenient option for you? The answer may depend on a variety of things. Make sure to place the following in balance.

Speed of Incorporation

The faster you can start the business, the faster you can get the money going. We know that time is money, and it’s always great if you can go past bureaucratic issues as soon as possible. 

In the United States, it takes several business days for you to get started. The process is not that difficult, but it is much faster in the United Kingdom. This is because there are fewer members required and not as much paperwork is needed. For example, foreign exchange companies in the United Kingdom take 3-5 days at most to set up.

Cost of Operations and Labor

Unless you plan on running a sole proprietorship, you need to hire employees. As a business owner, you will be responsible for paying their salaries. According to Glassdoor, the average salary in the US for a software engineer is $129,000 per year. This means you need to pay higher fees to attract talent.

On the other hand, the average salary in the UK is £41,700, which is roughly $50,000. This makes it the more attractive option, as you won’t have to pay high salaries to attract talents your way. If you are based in the US, branching out to the UK may also do you good.


For a business to be successful, you need decent access to funding to recover potential losses. In the United States, there are many venture capital companies and angel investors willing to invest. If you have a strong business plan and know exactly what you want to do, this can be good for you.

In the UK, investors are not as eager to throw money at startups. They are more conservative, a quality that was further strengthened by Brexit. On the plus side, this causes UK companies to focus on revenue rather than rapid growth. The company’s success is often slower, but steadier, as it puts everything in balance. They will not make any unnecessary purchases that will run the company into a deficit.

The Bottom Line

The UK is often more relaxed when it comes to business owning, but the US gives more access to funding. For the most part, it depends on the initial budget that you have. You may need a thorough plan in the UK, but you will have more chances of creating revenue.

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