Doing Business in the United Kingdom VS India – A Comparison
Entrepreneurs and investors often face a tough decision when choosing between the United Kingdom and India as their preferred destination for business expansion. Each country offers significant opportunities—but with different challenges, infrastructures, and regulatory landscapes. The choice depends on whether you’re prioritising global connectivity or rapid market scale.
3E Accounting notes that the United Kingdom stands out for its structured and reliable legal system, efficient setup process, and high quality of life. India, meanwhile, offers access to a massive domestic market, a growing middle class, and a cost-competitive environment for scaling operations.
The United Kingdom: Stable governance, strong legal protection, and available business finance support make it an investor-friendly jurisdiction.
India: A rapidly improving business climate, supported by government reforms like “Make in India,” though bureaucracy and inconsistent regulations remain a concern.
Taxation
The United Kingdom: Corporate tax is 25%, and incentives exist for R&D and capital gains reinvestment.
India: Corporate tax ranges from 15% to 30%, depending on company type and revenue. Capital gains tax applies and varies by holding period and asset type.
India: Online registration is available, but the process involves multiple government agencies. Delays and manual verifications can slow incorporation.
Cost of Living and Business Operations
The United Kingdom: Operational costs are higher, but infrastructure, workforce skills, and systems make it worthwhile. Company incorporation in the United Kingdom is accessible for startups and SMEs.
India: Low wages, rent, and operating expenses make India ideal for scaling. However, challenges around logistics and compliance may arise.
Access to Markets
The United Kingdom: Offers access to global markets through trade agreements and strong logistics networks.
India: Provides regional access within South Asia and has FTAs with countries in Asia and Africa. Still growing its global reach compared to the UK.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference.
Factor
United Kingdom
India
Business Environment
Stable, transparent, pro-investment
Growing, reform-driven, moderate bureaucracy
Corporate Tax Rate
25%
15% – 30%
Capital Gains Tax
Applicable with relief options
Applicable; varies by asset and duration
Ease of Incorporation
Fast, digital, low paperwork
Improving, but often delayed by verification steps
Business Costs
Moderate; balanced by infrastructure
Low; ideal for scaling, but compliance costs vary
Market Access
Global reach with strong logistics
Regional strength, growing global access
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.
The United Kingdom offers political stability, ease of setup, and global market access. India offers scale and cost-efficiency, but may involve more regulatory navigation.
The UK has a flat corporate tax rate of 25%. In India, rates range from 15% to 30%, depending on company type and turnover.
The UK provides fast digital company registration with minimal bureaucracy. In India, registration is improving but still involves multiple agencies.
Yes, India has lower costs in terms of labour and rent. However, the UK offers superior infrastructure and ease of doing business through established company incorporation in the United Kingdom.
You can easily contact 3E Accounting to receive expert guidance on UK company formation and regulation.
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.