According to a recent study by HM Revenue & Customs, one in four large businesses are thinking about relocating all or part of their business abroad and of those surveyed, 58% say that they have considered moving abroad due to tax issues.
Findings in the survey reveal that 36% of large businesses feel HMRC has had a negative effect on the commercial competitiveness of the UK. Tax rates and legislation were named the main factors that reduced the competitiveness of the UK.
As a business owner, you may choose to move to another country for the sunnier climate, or alternatively to take advantage of different tax systems. Whatever your reason is for relocating, make sure you think long and hard about the destination.
There are various places which are popular for businesses to relocate to. Advertising firm WPP moved its headquarters overseas back in 2004 and now it has offices in New York, Ireland, India, Hong Kong and Singapore. Its reported revenues totalled £10 billion at the end of 2011 and revenues were up 7% in the first four months of 2012. The firm has over 158,000 employees in 2,500 offices across 108 countries.
Elsewhere, finance institution Henderson Global Investors and engineering group Charter relocated to Ireland in 2008 and they too have proved successful. Henderson Global Investors reported £480.1 million revenue in 2011 with over 1,000 employees worldwide. Charter reported £1,719.6 million revenue in 2010 and it now has over 12,000 employees.
There are many reasons why these exampled businesses chose to move to some of the aforementioned locations; Singapore is rapidly becoming Asia’s business epicentre and Ireland offers huge tax advantages.
The Global Mobility Survey 2012 from Brook land Global Relocation services found that 64% of global companies sent more employees overseas in 2011 which shows that more and more businesses are choosing to relocate their staff each year.
Here is an expert guide of some of the most popular destinations for businesses to choose from when considering relocation.
- Dominican Republic
The Dominican is increasing in popularity as a hotspot for relocation. There has been a big boost in business development and the government is improving its infrastructure. The economy is stable, tourism is rife and there is low bureaucracy. There is tropical weather all year round too.
This is not internationally recognised as an industrial centre but businesses can find emerging markets and opportunities. Remember that Islam is practised by the majority of Egyptians and governs their personal, political, and economic lives. Negotiating is important and patience is required so never use pressured tactics when doing business.
- New York
It is the most exciting and active city in the world and it is the place to be for any business. It has celebrities, Times Square, buzzling stores and a rising tech scene. It has the strategic location, a thriving workforce and excellent tax incentives.
The thriving cosmopolitan lifestyle is fantastic and people can earn much more. It is rapidly becoming Asia’s business epicentre and there are lower levels of taxation too. The robust economy, high quality of life and strong legal system are just a few reasons why the city is a relocation hotspot.
- Hong Kong
This is one of the world’s most important financial centres and many businesses in the financial industry relocate here. It is renowned as a world leader in banking and business, setting up here up is cheap and easy; and all transactions completed outside of Hong Kong has the tax rate is zero.
There has been major development and progress in the city over the years and millions of people relocate their every year. Over 80% of the people living in Dubai are from other countries and this is due to its central location making it accessible for Asia and Europe as well as the Middle East; and it has fantastic infrastructure.
So if you are considering relocating your business in a foreign country, why not choose one of the above countries as the perfect location.
Bio: This article was provided by Robinsons Relocation ; the specialists in overseas removals.