In this article, we dive into the UK’s technology sector, what is driving its robust growth in Foreign Direct Investment, and hear from our Group COO, Alex Gardner, on the UK’s favourable business environment.

The UK tech sector is estimated to be worth £1 trillion, a 9x increase over the last decade, and a 30% rise since 2023. Driven by the recent developments in AI, the market includes 37 fintech unicorns and is the 3^rd largest tech eco-system in the world and the largest in Europe.

A key driver behind the markets buoyant economic growth is investment by international investors, who raised over $3 bn of venture capital in fintech and over $2 bn in AI in 2024. The market’s attractiveness has led to high confidence amongst domestic and international investors due to the UK’s resilience, stability, and demonstrated track record in digital innovation.

This positive outlook has also been recognised in the PwC annual survey of global business leaders 2025, in which global CEOs ranked the UK as the second most attractive market for foreign direct investment after the U.S. The survey reinforced the UK’s position as a place for business and investment and shared that nearly two thirds of UK chief executives expect a continuation of strong economic development in the next 12 months.

The UK are leading the way with AI, as 93% of CEOs in the survey claim to have adopted the technology, exceeding the global rate of 83%. They are positive on the potential of what AI holds for the future of business and believe the near future will be poignant to see how AI effectively integrates into operations. The UK financial Regulator, Financial Conduct Authority (FCA), have adopted an ambitious Five-Year Strategy focused on driving further growth and innovation in fintech to continue to maintain its globally leading position. This includes taking a smarter approach to regulation by further streamlining frameworks to minimise any unnecessary challenges, avoiding additional regulations, integrating a Payment Systems Regulator, and implementing supportive regulatory initiatives, such as a digital securities sandbox.

We hear from Alex on why the UK offers a favourable environment for start-ups and businesses seeking to expand their operations.

“The UK offers a competitive landscape for business due to its attractive regulatory frameworks, strong legal environment, flexible labour market and advanced infrastructure.

It has lower barriers to entry for start-ups due to its clearer regulations and faster business set up over many other European countries due to its simplified incorporation process. The government offers start-ups and established businesses with financial support schemes, such as start-up loans up to £25,000 and tax reliefs and credits. There are also various business programmes and innovation hubs to support operational aspects and help stimulate innovation.

To help encourage investment and development in the jurisdiction they have set up enterprise zones, investment zones and freeports, all of which offer businesses various incentives. These include discounts on business rates, which could save a business up to £275,000 over five years, easier access to planning permission, and tax reliefs for business making large investments on machinery and equipment. Enterprise zones also tend to have higher levels of talent to help companies boost employment opportunities.

The UK offers businesses a highly skilled labour market and has attracted international talent, ideal for businesses seeking employees with specialist skills. It’s recognised for its favourable labour laws which offer fairness and strong protection to both employee and employer, boosting employee satisfaction, and reducing employee turnover. There are various types of employment contracts in place which increases flexibility for businesses to hire according to their business needs. Its legal landscape also offers businesses stability which increases confidence, world-leading dispute resolution and mediation, and favourable cross border contracts.

In addition to its zones across the country, the UK is home to London, a leading global International Financial Centre. Its transparent regulatory environment has been designed to protect investors and encourage innovation, it offers businesses with robust, modern infrastructure, which supports emerging digital business models, and network of established investment, capital and fintech markets. In addition, there are many attractive financial benefits the UK offers new businesses. It has one of the largest double tax treaty networks and offers a lower corporate tax compared to other countries, 25% corporate tax is levied to UK entities which earn an excess of £250,000 profit and a reduced rate of 19% to UK entities with augmented profits below £50,000.

Overall, the UKs robust and flexible legal environment, pro-innovation and supportive government and advanced infrastructure has formed its reputation as a leading international business friendly centre. Its frameworks have been designed to attract new business and encourage investment to the jurisdiction, and its environment offers businesses with flexibility, protection and support to foster growth and innovation.”

Interested in setting up a business in the UK?

If you already know your business model and would like to discuss structuring in the UK, our team would be delighted to hear your unique requirements to see how we can help.

We provide a range of corporate services from our London office to assist clients wishing to set up an entity in the UK. From incorporation, on-going administration and accounting, our bespoke services meet the needs a broad range of clients in various industries.

Our team are well-placed to answer any of your questions concerning the regulatory environment, legal vehicles and government support available in the UK. As a global fiduciary firm, we also hold a network of partners in London across legal, tax, investments and banking sectors to facilitate introductions for our clients.

Contact Alex

If you would like to have a one-to-one conversation, contact Alex to discuss your requirements, she would be delighted to assist you.

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