Robust consumer spending and the impact of Brexit are fuelling a surge in the number of overseas companies setting up operations in the north west, say specialists at accounting and business advisory firm HURST.
Adrian Young, a tax partner at HURST, said the UK’s favourable tax environment is also a key driver.
The number of overseas companies seeking assistance from HURST has doubled over the past 18 months. The firm currently has around a dozen or more active cases on its books at any one time.
The work of HURST’s tax and international business specialists acting on behalf of foreign firms ranges from incorporating new companies and VAT registrations to advising on import processes, acquisitions and new inward investment structures.
Among the leading partner countries by value of inward investment into the UK or imports are EU nations such as Germany, France, the Netherlands, Belgium and Luxembourg, as well as the US and China.
Adrian said: “The north west closely mirrors this pattern and we to closely reflect this in the work we are doing in the HURST advisory team, for example helping Dutch and German businesses to incorporate new UK companies, advising US companies on acquisitions, and setting up new UK inward investment structures.
“Some common themes are emerging. Chief among them is finding an effective way to do business in the UK. This has partly been driven by the need to overcome Brexit-related barriers, but I think it is also symptomatic of a wider uptick in both inward investment and imports.
“This is borne out by official statistics as, following a noticeable dip after the UK’s departure from the EU, there has been a general if sluggish trend back up towards pre-Brexit and pre-Covid levels.”
Adrian said the trend is being driven foremost because the UK remains a large and wealthy consumer market.
“Many foreign businesses coming to the north west are in retailing and consumer products, including clothing, high-end furnishings and décor, and home and garden accessories. The lure of the UK consumer market is too strong to resist and, even despite Brexit-related bumps in the road, they are keen to come,” he said.
“Secondly, these businesses are often new to the UK market, and so they ask us to help them gain a deeper understanding of the UK corporate world, their market or sector, how our tax system works, or to gather more general market insights.
“Thirdly, and perhaps most fundamentally, they need concrete assistance with the basics, including ensuring their statutory filings are done correctly.
