Multinational companies choose to start doing business in the United Kingdom for a number of reasons, particularly in the Banking, Payments and Financial Services Markets.
Establishing a presence in the UK provides many advantages. Newer entrances gain access to affluent new customers, have the opportunity to refresh an otherwise stagnant product or service, and open up the potential to do more business with other countries across Europe. In spite of the UK leaving the EU, companies based in the UK can reach more than 500 million consumers in Europe alone.
The UK and London is an especially attractive place with regards to the Payment Industry, due to the regulatory and legislative benefits of Open Banking, the UK’s adherence to PSD 1 and 2, and the ease and speed of undertaking business in the City of London, which is free from free from a raft of financial and tax encumbrances that are still present in Continental Europe and the EU.
For non-UK entities looking to establish a presence in the UK, but not for example looking to acquire a UK entity, they enter this market to establish a presence through a private limited company (for example, as a UK subsidiary of an existing non-UK entity); or set up a UK establishment (more commonly known as a “branch”) of an existing non-UK entity. However, these activities take time and indeed can be costly. As such, The Payments Business and Academy assists those entities whom wish to establish a presence here, and simultaneously enable them to enjoy the benefits of the UK economy at a fraction of the cost when establishing a presence on their own.
The reasons for choosing one approach over another will vary significantly from business to business. Typically, overseas clients choose to incorporate a UK subsidiary; and others choose to establish a branch first, and then incorporate a subsidiary, once their UK operations have grown.
However, the majority of our clients choose The Payments Business and Academy to represent them solely in the UK Payments Community under an agreed “Agency” arrangement. This method allows both parties to engage comfortably and seamlessly together, while providing access to new clients and joint business and revenue opportunities; and at a lower operational cost incurred by non-UK entity.
As a result, and by choosing this method, the benefits can truly shine when taking your business to the UK.