Why should you opt for EOR (Employer of Record) rather than setting up a UK entity?

The history of a business environment made up of different nations, such as the United Kingdom, has been part of Western history for several centuries.The country has a history of numerous technological innovations and offers an ideal environment for those who want to gain a foothold in the global market.

To give you some figures: With a diverse consumer base of over 68 million people and a well-educated, skilled labour force, the UK is a strategic choice for international businesses. The transparent regulatory framework and strong infrastructure make the country even more attractive.

When setting up a local subsidiary, you will have to deal with complex legal requirements, financial obligations and administrative challenges. Working with an Employer of Record (EOR) simplifies this process and enables companies to enter the market efficiently and cost-effectively.

This article looks at how a partnership with EOR can make it easier to enter the UK market rather than setting up your own local business.

Strategic Advantages of the UK Market

The United Kingdom is one of the world's most attractive markets for international business expansion due to its historical tech-minded business marketplace. It combines economic stability, technological innovation, and rich cultural diversity—a movement that your company must make.

With its position as a global business hub, exceptional talent pool, and robust legal framework, the UK provides an ideal environment for companies seeking to establish or expand their European presence.

A vibrant global financial and consumer hub

While London shines brightly as a leading global financial capital, there are several opportunities to expand in the UK. Cities and workspaces in Manchester, Birmingham, and Edinburgh are bursting with exciting industries and unique opportunities. 

The Midlands, in particular, is a hotspot for businesses seeking lower operational costs and fantastic grant programs, making it a great place to thrive. 

An abundance of skilled talent came from every corner of the world: 

The UK has historically brought work to these frontiers since Sec.XIX. Nowadays, it still boasts an incredibly diverse talent pool beyond London, with regions like Scotland and the Midlands bringing specialized skills in technology, finance, and the creative sectors. Another thing is that high-quality education and a dynamic professional environment make these areas truly appealing to innovative minds. 

Supportive Pro-Business policies: 

The UK is committed to fostering a friendly business environment with clear regulations and enticing tax incentives, especially for research and development (R&D). Recent updates to R&D tax relief offer an impressive 20% credit for larger companies and a remarkable 186% deduction for small and medium-sized enterprises (SMEs), alongside personalized regional support programs. The future is bright! 

Why EOR is a Preferred Option ?

If you want to make your mark in the vibrant UK market, deciding whether to create a local entity or partner with an Employer of Record (EOR) is an exciting step! 

While both options have advantages, EOR services stand out for their incredible benefits, especially for companies wanting a smooth and adaptable entry. 

Let's explore the fantastic perks of choosing an EOR and why it is perfect for your business journey! 

Speed to Market

We all live in a hurry, right? Setting up a local entity can take months, whereas an EOR enables businesses to start operations within weeks. This agility is crucial in fast-moving industries. 

Cost Savings

Employer of Record (EOR) services eliminate the need for office leases, legal fees, and administrative infrastructure, allowing for more efficient resource allocation. 

Simplified Compliance

EORs manage employment contracts, payroll, and statutory benefits and ensure compliance with UK labor laws, minimizing legal risks. 

Workforce Flexibility

EORs offer adaptable workforce solutions tailored to business needs, whether for short-term hires or scaling operations.Key Legal and Operational Benefits of EOR. 

Comprehensive Benefits Administration

Employer of Record (EOR) services manage essential benefits such as National Insurance, statutory leave, and pensions, ensuring compliance with regulations and enhancing employee satisfaction. By offering region-specific packages, EORs help attract top talent. 

Risk Mitigation

Partnering with an EOR reduces risk exposure, including GDPR breaches and worker misclassification. EORs stay informed about legal changes to protect businesses. 

Streamlined onboarding

EORs facilitate compliance with the Employment Rights Act by providing legally sound contracts and a smooth onboarding process. 

The Bottom Line

Expanding into the UK presents exciting opportunities across its various regions, from London's financial district to London Scotland's innovation hubs in Scotland. 

Partnering with a reputable Employer of Record (EOR) such as Swapp Agency simplifies the setup process, allowing businesses to concentrate on growth and innovation. With an EOR, your expansion into the UK becomes feasible, efficient, and impactful.