Doing Business in the United Kingdom VS Indonesia – A Comparison
For entrepreneurs and investors evaluating global expansion, choosing between the United Kingdom and Indonesia comes down to strategic priorities. Both countries offer unique benefits—whether it’s infrastructure, market access, or growth potential. The challenge is deciding which aligns better with your long-term business goals.
3E Accounting highlights that the United Kingdom remains a top choice for its legal certainty, digital efficiency, and access to global markets. Indonesia, on the other hand, offers competitive labour costs and a large, fast-growing domestic consumer base—ideal for businesses targeting Southeast Asia.
The United Kingdom: Offers legal stability, strong governance, and extensive business finance support through government grants and schemes.
Indonesia: Politically stable with recent pro-business reforms, but regulatory changes and administrative inefficiencies remain a concern for foreign investors.
Taxation
The United Kingdom: Corporate tax is set at 25%, and businesses may benefit from capital gains relief and R&D tax incentives.
Indonesia: Corporate tax is 22% for most companies. Capital gains are taxed as regular income, with specific rates depending on asset type.
Indonesia: Processes are improving with online submissions, but the setup still requires local licensing and various permits, which can delay incorporation.
Cost of Living and Business Operations
The United Kingdom: Higher operational costs are balanced by reliable infrastructure and workforce productivity. Company incorporation in the United Kingdom remains practical for SMEs and international firms.
Indonesia: Offers low labour and office rental costs, but inconsistencies in logistics, electricity, and regulatory enforcement can add friction to operations.
Access to Markets
The United Kingdom: Strategically positioned for global trade, with strong infrastructure, connectivity, and access to Europe, the US, and Asia.
Indonesia: Member of ASEAN, providing access to Southeast Asian markets. However, global trade infrastructure is still developing compared to the UK.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference.
Factor
United Kingdom
Indonesia
Business Environment
Stable, transparent, globally recognised
Reforming, improving, some regulatory risk
Corporate Tax Rate
25%
22%
Capital Gains Tax
Applicable with reliefs
Taxed as ordinary income
Ease of Incorporation
Digital, fast, low red tape
Improving, but can be slow and complex
Business Costs
Moderate to high, supported by infrastructure
Low, but operational inconsistencies
Market Access
Global markets via trade agreements
Strong ASEAN access, limited global scale
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 UK offers stability, digital infrastructure, and global reach. Indonesia is ideal for cost-efficient operations and Southeast Asian market access, but has more administrative complexity.
The United Kingdom applies a flat 25% corporate tax. Indonesia’s rate is 22%, with capital gains taxed as part of regular income.
The UK provides efficient online company registration. Indonesia has improved its digital systems, but local licensing and approvals can slow the process.
You can contact 3E Accounting to speak with experts on UK company formation, compliance, and business planning.
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.