- Falls from 3rd place in 2021 to 7th in 2022 out of 170 countries
- Due to rapid post-pandemic improvement of company processes worldwide
- Yet competitive legal sector fees keeps it in Top 10
LONDON–(BUSINESS WIRE)–The UK has taken a hit over the past year in a global ranking of countries charting the cost and speed for multinationals setting up entities – due to increasing competition and the rapid improvement of jurisdictions – according to data compiled by the entity portfolio management (EPM) leader Mercator® by Citco, in its UK EPM Special Report.
The UK fell from 3rd place out of 170 jurisdictions in 2021 to 7th in 2022. This is due to the rapid advancements of other jurisdictions in digitalizing company law procedures and a consequence of flexible company regulations, introduced across the world in response to the disruption caused by the COVID pandemic. This leaves the UK in a worse position comparatively, falling from the 14th fastest country for completing corporate activities in 2021, to 26th in 2022.
However the UK remains one of the most cost-effective jurisdictions to set up entities, rising from the 19th cheapest country in 2021 to 14th in 2022. This is driven by a highly competitive and well-established legal sector, which significantly lowers the cost relative to other jurisdictions due to competitive market pricing.
Overall, the data shows the UK is 36% cheaper and still 40% faster than the combined average of all other 170 jurisdictions worldwide.
In summary, the UK has the following advantages that both reduce the cost of and time taken in entity management:
- An ideal combination of cost levels and competitive speed of business in setting-up entities;
- The availability of electronic filings for almost all corporate related actions; and relatively swift processing time by Companies House;
- Widespread adoption of flexible remote working arrangements,
- E-signatures are accepted not only for internal documentation, but also by Companies House;
- It is common practice to approve corporate decisions by written resolutions instead of holding an actual meeting; and
- Board meeting can be held via teleconference and minutes require to be signed only by one person as a chairman.
Kariem Abdellatif, Head of Mercator by Citco, said:
“Overall, the UK’s combination of lower costs and speed of business in managing multinational entities – paired with its straightforward legal system and international standing as a global financial center – means it remains a favorable location to base corporate entities.
“Legal services in the UK are well established and often externalized which also further increases demand and in turn the supply. This highly competitive legal market ensure cost efficiency and high quality services.”
“Of course, the purpose of this report is not to advise multinational companies on where to base entities or subsidiaries – this is obviously dictated by necessity – but to set expectations and provide foresight on the relative cost and time it takes to complete activities in the UK.”
To read the full report, please visit: https://mercator.net/our-thinking/publications/uk-epm-special-report/
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Notes to editors:
The statistics that form the basis of this report cover the period between January 2022 and December 2022 and is drawn directly from Mercator® by Citco’s (Mercator) proprietary EPM technology platform – Entica™ – which individually records all the activities undertaken for clients. The data represents £2 trillion in market capital and relates purely to the activities of multinational companies.
The UK EPM Report is part of Mercator’s Entity Portfolio Management Report Series, providing direct insight on the cost and time to manage a global portfolio of entities, based on real-life data.
About Mercator® by Citco
The pioneer of Entity Portfolio Management (EPM), Mercator by Citco (Mercator) creates lasting partnerships with its clients to understand their individual needs and offer ease, efficiency and visibility through a clear layer of oversight. Mercator’s unrivalled knowledge of EPM and proprietary technology – Entica™ – is evolving the way companies view and manage their portfolio of entities, helping them navigate an increasingly complex regulatory environment.
As a part of the Citco group of companies (Citco), Mercator works closely with our Corporate Solutions team – a bespoke, centralized service offering BPO accounting, Common Reporting Standard, directorships and payroll services, among others. The transparency offered by Mercator’s data insights combined with Governance Services’ proactive expertise means Citco can support any multinational corporation on all of your entity management needs.
About the Citco group of companies (Citco)
The Citco group of companies (Citco) is a network of independent companies worldwide. These companies are leading providers of asset-servicing solutions to the global alternative investment industry. With over $1.8 trillion in assets under administration and 8,200 staff deployed across 40 countries, Citco’s unique culture of innovation and client-driven solutions have provided Citco’s clients with a trusted partner for more than four decades.
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