Doing Business in the United Kingdom VS Croatia – A Comparison
Entrepreneurs often find themselves weighing options between two promising destinations: the United Kingdom and Croatia. Both countries have strengths that appeal to investors, making the decision less straightforward than it seems. While Croatia offers an emerging market with growing infrastructure and EU access, the United Kingdom remains a consistent choice due to its competitive business environment, ease of entry, and quality of life.
The United Kingdom stands out for its strong regulatory systems, global market access, and cost-efficiency when setting up smaller businesses. On the other hand, Croatia is gaining traction with its EU integration and investor-friendly reforms. Let’s explore how both destinations compare across key factors.
The United Kingdom: The UK offers a stable political environment with a strong legal framework and robust government initiatives that support foreign investment. Company incorporation in the United Kingdom is backed by decades of regulatory experience.
Croatia: Croatia has made progress in stabilizing its economy and improving its legal system, but bureaucratic challenges remain for foreign investors.
Taxation
The United Kingdom: The UK has a corporate tax rate of 25%, along with several tax incentives for SMEs and startups. Company registration offers clarity in tax obligations.
Croatia: Croatia has a lower corporate tax rate of 18%, and 10% for small businesses with revenue under a set threshold, though navigating tax laws can be complex.
Ease of Company Incorporation
The United Kingdom: The UK’s digital infrastructure allows companies to be incorporated in as little as 24 hours. Its regulatory environment is transparent, making company incorporation services straightforward.
Croatia: Incorporation in Croatia typically takes longer and involves more paperwork. The process is improving but still lags behind the UK’s efficiency.
Cost of Living and Business Operations
The United Kingdom: While major cities like London are costly, many areas in the UK offer affordable office space and business services. The country supports setting up businesses in the United Kingdom with low-cost solutions for startups.
Croatia: Operational costs are generally lower in Croatia, especially for office rental and salaries, making it attractive for cost-sensitive ventures.
Access to Markets
The United Kingdom: Despite Brexit, the UK maintains strong global connectivity, including multiple free trade agreements and robust logistics. With 3E Accounting, businesses can tap into well-established global networks.
Croatia: As an EU member, Croatia offers easy access to the European single market, but its geographic and trade infrastructure are still developing.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference.
Factor
The United Kingdom
Croatia
Business Environment
Stable political and legal framework
Improving but bureaucratic
Corporate Tax Rate
25%
18% (10% for small businesses)
Capital Gains Tax
Applicable with exemptions
Varies, with exemptions for long-term holdings
Ease of Incorporation
Fast, digital, efficient
Slower, paper-based
Business Costs
Lower for small businesses
Generally lower overall
Market Access
Global reach with strong trade links
EU market access, developing logistics
Benefits of Choosing 3E Accounting
When it comes to starting a business in the United Kingdom, navigating the legal and administrative processes can be complex without the right support. That’s where 3E Accounting comes in. As a trusted partner for company incorporation, we provide tailored solutions for entrepreneurs and investors looking to establish a strong business presence. Whether you need help with company registration or expert guidance on setting up businesses in the UK, our experienced team ensures a smooth and efficient process.
Yes, there are various business finance support schemes available to help fund new and existing businesses in the UK.
You can delegate compliance and governance tasks through company secretary services provided by professionals who understand UK regulations.
Abigail Yu
Author
Abigail Yu oversees executive leadership at 3E Accounting Group, leading operations, IT solutions, public relations, and digital marketing to drive business success. She holds an honors degree in Communication and New Media from the National University of Singapore and is highly skilled in crisis management, financial communication, and corporate communications.