One entrepreneur explains.
As a startup, you need to make a number of tough decisions, some of which will have a small impact on your business, whilst others will have an enormous impact. One of the most critical decisions for any startup is where to incorporate and build your company.
Writing for City AM [15 March 2018*], Reda Bennis, co-founder and chief executive of Zebra-Fuel, an on-demand car refuelling company, explains why, when he and his co-founder are from Morocco and Paris respectively, they chose London as their startup hub:
“First and foremost, we felt that it would be easier to raise the capital that we needed to get the business off the ground in London than it would be in Paris.
“There’s a high density of top VC firms and super angels physically based in London that local startups can easily access.
“Another vital element to securing any startup’s early success is talent. Basing the company in London gives us the best opportunity to access super smart individuals that can help us grow.”
Reda also noted that launching a company using the English language, was preferable to starting up with a French speaking company and “ultimately sacrificing easy access to the biggest markets possible.”
Commenting on Brexit, Reda says that, whilst London has so much to offer, looking ahead Brexit poses a threat to UK-based businesses, especially if the UK government pushes ahead with plans that will make it harder for European citizens to work in the UK. This, he says, French politicians see as an opportunity for Paris to “leapfrog” its English rival and become the leading tech centre in Europe “if London trips up.”
“The UK government needs to be careful that Britain doesn’t rest on its laurels. For many startups, particularly those coming out of French-speaking Africa, Paris’s offer could trump London’s.”
London is an established world-leader in finance, creative industries and business services, and a growing force in newer industries such as tech, low carbon and life sciences. It offers some tempting UK tax incentives to support innovation and startup businesses, such as Entrepreneur’s Relief, R&D tax credits, Enterprise Investments Schemes, and more.
At Beavis Morgan, we specialise in working with startups and entrepreneurial people across a wide range of sectors, providing guidance and strategic advice to help in formulating plans for your business in order to strengthen its prospects of success, achieve growth and maximise wealth.
If you would like to find out more about how we can assist you and your startup business or to discuss how any of these tax incentives could benefit your business, contact Steve Govey or your usual Beavis Morgan Partner.
* Source: City AM