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Doing Business in the United Kingdom VS Latvia – A Comparison
Entrepreneurs often compare the United Kingdom and Latvia when choosing a location for business setup in Europe. Each offers distinct advantages. Your choice depends on whether you prioritise global access or lean toward a growing digital economy with low startup costs.
3E Accounting notes that the United Kingdom is known for its strong regulatory environment, investor protections, and fast incorporation process. Latvia appeals with its low corporate tax, tech-driven policies, and easy access to Baltic and EU markets.
Key Comparison Points
Business Environment
- The United Kingdom: Offers political and legal stability, government support for entrepreneurship, and a trusted financial system.
- Latvia: EU member state with a business-friendly environment, though smaller in scale. Regulatory policies continue to improve.
Taxation
- The United Kingdom: Corporate tax stands at 25%, with specific reliefs for SMEs and startups. Capital gains are taxed based on holding and asset type.
- Latvia: Applies a 20% corporate tax only on distributed profits. Retained earnings are tax-exempt, and capital gains are usually taxed when distributed.
Ease of Company Incorporation
- The United Kingdom: Businesses can incorporate digitally within a day through providers like company incorporation in the United Kingdom.
- Latvia: Also offers online registration, with full incorporation possible in a few business days. Requires a local address and minimum share capital.
Cost of Living and Business Operations
- The United Kingdom: Business costs are moderate outside London. Cities like Manchester and Birmingham offer value for startups.
- Latvia: Lower operating costs, including wages, rent, and utilities. Riga offers affordable business hubs with solid infrastructure.
Access to Markets
- The United Kingdom: Well-connected by air, sea, and digital networks. Its global trade access remains strong post-Brexit.
- Latvia: Provides access to the EU, Nordic, and Baltic markets, with proximity to Russia and Central Asia for regional trade.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference.
| Factor | The United Kingdom | Latvia |
|---|---|---|
| Business Environment | Stable, well-regulated, investor-friendly | Business-friendly, small but agile market |
| Corporate Tax Rate | 25% | 20% (on distributed profits only) |
| Capital Gains Tax | Varies by asset type and holding period | Taxed only when profits are distributed |
| Ease of Incorporation | Fully digital, completed in 1 day | Online, completed in 3–5 business days |
| Business Costs | Moderate outside London | Lower across major cities |
| Market Access | Strong global access | EU and regional market integration |
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.
From full company incorporation services to ongoing support like corporate secretarial and company secretary services, we offer a complete suite of solutions to support your company setup. Let us help you focus on what matters most—growing your business. Contact 3E Accounting today and take the first step toward successful expansion.
Frequently Asked Questions
Why is the United Kingdom a popular destination for business setup?
Answer: The UK offers a stable legal system, fast registration, and strong international trade access. You can refer to this guide to starting a business in the United Kingdom for step-by-step instructions.
How does company registration in Latvia compare to the UK?
Answer: Latvia offers online incorporation within a few business days. The UK process is faster and fully digital. For details, see this UK company registration guide.
What makes company incorporation in the United Kingdom attractive?
Answer: It’s fast, digital, and backed by a reliable legal framework. Learn more about company incorporation in the United Kingdom.
Can I get expert help with company incorporation services in the UK?
Answer: Yes. 3E Accounting offers complete company incorporation services tailored for UK regulations.
What should I consider when setting up businesses in the United Kingdom?
Answer: You’ll need to register your company, open a bank account, and comply with tax laws. This guide to setting up businesses in the United Kingdom covers it all.
Where can I get reliable company setup services?
Answer: Company setup support is available from 3E Accounting.
Do UK companies need corporate secretarial services?
Answer: Yes. Most companies engage corporate secretarial and company secretary services for compliance and reporting.
Is government support available for businesses in the UK?
Answer: Yes. Businesses can apply for business finance support including loans, tax reliefs, and grants.
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.