CPTPP and why set up offshore companies in the UK?

In 2021, the United Kingdom (UK) formally requested to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). If the application is approved, this will be considered as a major milestone, enhancing Vietnamese businesses to expand their target markets and set up offshore companies in the UK.

Following its departure from the European Union (EU), joining CPTPP does not require the UK to cede control of its laws, borders or money. Basically, Vietnamese businesses benefit from the reduction of import and export taxes, increase accession to the target markets and business brand protection in the UK.

CPTPP will bring a great leverage for bilateral trade between Vietnam - UK

To enhance the bilateral relationship between Vietnam - UK

The UK-Vietnam Free Trade Agreement (UKVFTA) maintains the two sides' benefits in the EU–Vietnam Free Trade Agreement. Trade in tangible goods like textiles, footwear to aquatic products remain unchanged. Trade in services, for example, financial and e-commerce services, can continue to grow strongly. The agreement not only liberalizes trade in goods and services between Vietnam and the UK, but it also aims towards green growth and sustainable development.

As a founding member of CPTPP, Vietnam always welcomes and supports the UK to join CPTPP in the future. Reportedly, CPTPP accounted for 13% of the total global GDP in 2019 and is expected to increase by 16% when the UK joins. The CPTPP is one of the most important FTA in the world, therefore both the UK and Vietnam look forward to working closely on this.

Many Vietnamese businesses authorize One IBC to set up companies in the UK

For Vietnamese enterprises, when exporting goods to CPTPP countries, they are being committed to preferential taxation. Having free trade relationships with a CPTPP country means that it will strongly enhance the bilateral relationship between Vietnam and the UK.

Vietnamese businesses conquer the UK market

The UK has been famous for its long history as a great nation and financial center in Europe. The UK is considered an attractive destination, attracting Vietnamese investors to start businesses. According to One IBC, an international corporate service provider, many Vietnamese businesses want to set up companies in the UK because its economy is one the most influential in the world.

As of the departure from the EU on January 31, 2020, the UK has gradually reduced its dependence on the EU market and exploited economic strategies that give advantages for Vietnamese businesses. When setting up a company in the UK, Vietnamese companies will enjoy many incentives and adapt the latest technology from the UK.

The UK’s CIT rate is 19%, among the top 3 lowest in the G20 and is expected to be reduced to 17%. In addition, favorable policies for foreign investment, Patent Box ... facilitate many Vietnamese investors to invest in the UK.

11 member countries of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the United Kingdom

If the UK joins CPTPP, the demand of setting up offshore companies in the UK will also increase. However, legal barriers and incorporation procedures to enter the UK market are challenges that new investors must overcome. On that journey, One IBC with more than 11 years of experience in company formation, trademark protection registration, account opening consultancy in the UK, are proud to bring the most practical business solutions for each business.

Please contact us via Hotline 1800 6758 or email [email protected] for business consulting to set up offshore companies in the UK. Follow the strong wave of modal trade between Vietnam and the UK with One IBC.