The Best Cities for Business in the UK (and Why They Matter)

Starting a business abroad is a bold and exciting step—one that comes with both opportunity and complexity, especially for U.S. expats. If you’re considering the UK, you’re not alone. Many entrepreneurs are searching for the best UK cities to start a business, offering growth, support, and a welcoming environment for foreign-owned companies. 

In this guide, we’ll walk you through the top regions in the UK for international businesses, highlighting what makes each location unique and how you can make the most of your expat journey.

Why the UK is attractive for foreign-owned businesses

The UK has long been a magnet for international entrepreneurs, and for good reason. Its business-friendly environment, robust legal system, and access to global markets make it one of the best countries to launch your venture. 

Here’s why U.S. expats and other foreign investors are drawn to the UK:

• Ease of doing business: The UK consistently ranks high in global ease-of-doing-business indexes. Setting up a company is straightforward, with clear regulations and efficient processes.
• Access to talent: The UK boasts world-class universities and a diverse, highly skilled workforce. Whether you’re in tech, finance, or creative industries, you’ll find the expertise you need.
• Gateway to Europe: Despite Brexit, the UK remains a strategic hub for accessing European and global markets, with excellent transport links and trade agreements.
• Support for innovation: From government grants to incubators and accelerators, the UK actively supports startups and scale-ups, especially those led by foreign founders.
• Cultural diversity: The UK’s cosmopolitan cities are welcoming to expats, making it easier to settle in and build both professional and personal networks.

For U.S. expats, the shared language and similar business culture can also ease the transition, though it’s important to understand the nuances of UK tax and legal systems. Let’s explore the top regions that stand out for foreign-owned businesses.

London: The premier destination for international companies

When it comes to the best UK cities to start a business, London is often the first name that comes to mind—and for good reason. As a global financial and cultural capital, London offers unparalleled advantages for foreign entrepreneurs.

Key advantages

• International connectivity: London’s airports and transport links make it easy to connect with clients and partners worldwide.
• Financial services hub: The City of London is home to major banks, investors, and fintech innovators, making it ideal for finance, tech, and professional services.
• Diverse markets: With a population representing nearly every country, London is a testing ground for products and services aimed at global audiences.
• Support ecosystem: From Tech Nation to London & Partners, there are countless organizations dedicated to helping foreign-owned businesses thrive.

Considerations for U.S. expats

While London offers immense opportunity, it’s also one of the most expensive cities in the world. Be prepared for higher living and operational costs, and consider seeking local advice on navigating UK business taxes and compliance.

Manchester and the northern powerhouse region

If you’re looking for the best UK cities to start a business outside of London, Manchester and the broader Northern Powerhouse region deserve your attention. This area has undergone a remarkable transformation, becoming a magnet for innovation and investment.

Key advantages

• Lower costs: Office space and living expenses are significantly lower than in London, making it easier for startups to manage budgets.
• Tech and media hub: Manchester is renowned for its digital, media, and creative industries, with MediaCityUK hosting giants like the BBC and ITV.
• Strong transport links: High-speed rail and international airports connect Manchester to the rest of the UK and Europe.
• Supportive community: Local councils and organizations offer grants, networking, and mentorship tailored to foreign entrepreneurs.

Considerations for U.S. expats

Manchester’s friendly, down-to-earth culture can make it easier to build relationships and integrate into the community. However, be mindful of regional differences in business etiquette and regulations.

Edinburgh and Scotland’s business advantages

Scotland’s capital, Edinburgh, is another standout among the best UK cities to start a business for foreign owners. Known for its historic charm and modern innovation, Edinburgh offers a unique blend of tradition and opportunity.

Key advantages

• Financial services excellence: Edinburgh is the UK’s second-largest financial center, with a strong presence in banking, insurance, and fintech.
• Tech and life sciences: The city is a leader in tech startups, life sciences, and data-driven innovation, supported by top universities.
• Quality of life: Edinburgh consistently ranks high for quality of life, with stunning scenery, cultural events, and a welcoming expat community.
• Scottish government support: Scotland offers unique grants and incentives for foreign investors, including the GlobalScot network.

Considerations for U.S. expats

While Scotland has its own legal and tax systems, these are generally business-friendly. It’s wise to seek local guidance to ensure compliance and maximize available incentives.

Birmingham and the West Midlands hub

Birmingham, at the heart of the West Midlands, is rapidly emerging as one of the best UK cities to start a business for foreign investors. Its central location and diverse economy make it a strategic choice for U.S. expats.

Key advantages

• Central location: Birmingham’s position makes it a natural logistics and distribution hub, with excellent road, rail, and air connections.
• Manufacturing and engineering strength: The region is known for advanced manufacturing, automotive, and engineering sectors.
• Growing tech scene: Birmingham’s digital and tech industries are expanding, supported by innovation centers and accelerators.
• Affordable living: Compared to London, Birmingham offers lower costs for both business and personal expenses.

Considerations for U.S. expats

Birmingham’s multicultural environment is welcoming to newcomers, but navigating local business networks may require patience and persistence. Take advantage of regional business support services to ease your transition.

Bristol and the South West innovation corridor

Bristol, along with the South West region, is gaining recognition as one of the best UK cities to start a business—especially for those in tech, aerospace, and creative industries.

Key advantages

• Innovation hotspot: Bristol is a leader in aerospace, robotics, and green technology, with strong links to nearby universities and research centers.
• Creative industries: The city’s vibrant arts and media scene attracts talent and fosters collaboration.
• Quality of life: Bristol offers a relaxed lifestyle, beautiful surroundings, and a supportive community for expats.
• Access to funding: Local and regional grants, as well as active angel investor networks, help startups get off the ground.

Considerations for U.S. expats

Bristol’s smaller size means a tight-knit business community, which can be both supportive and competitive. Engage with local organizations early to build your network and access resources.

Ready to launch your UK business? Get expert tax guidance today

Starting a business in the UK is an exciting journey, but navigating the tax and legal landscape as a U.S. expat can be daunting. Don’t let uncertainty hold you back—get the expert support you need to succeed. Our team specializes in helping U.S. expats with their personal and business taxes, ensuring you stay compliant and confident every step of the way.

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