United Kingdom
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Investing in the United Kingdom
FDI in figures | Why you should choose to invest in the United Kingdom | Procedures relative to foreign investment |
FDI in figures
According to the United Nations Conference on Trade and Development (UNCTAD), the United Kingdom is the second highest recipient of direct foreign investment (FDI) in the world. In 2008-2009, FDI flow was on the decline and this trend should continue in the coming years.
Even so, London still seems to be Europe's financial capital. Furthermore, Great Britain has a strong currency and one of the most important European markets.
| Foreign Direct Investment | 2005 | 2006 | 2007 |
| FDI inward flow (millions USD) | 177,901 | 148,189 | 223,966 |
| FDI stock (millions USD) | 850,963 | 1,133,437 | 1,347,688 |
| Performance Index*, ranking on 141 economies | 47 | 34 | 29 |
| Potential Index**, ranking on 141 economies | 3 | 3 | - |
| Number of Greenfield investments*** | 633 | 669 | 641 |
| FDI inwards (in % of GFCF****) | 46.2 | 34.6 | 44.8 |
| FDI stock (in % of GDP) | 37.9 | 47.3 | 48.6 |
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 in 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
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Last updates: November 2009