Business is GREAT Come to the UK Doing

Business is GREAT Come to the UK Doing Business in Great Britain Budapest, 29 th September 2016 Esztella Fazekas – Department for International Trade 1 Presentation title - edit in the Master slide

The Investment branch of the Department for International Trade helps companies expand to the UK Inward Investment scope Investment Trade ▪ Access and ▪ Passport to Export introductions to the right people for new and inexperienced exporters ▪ Advice and support ▪ In-depth report tailored to your business needs ▪ Research Scheme ▪ Help selecting the ▪ Tax advice ▪ Ongoing government support once you’ve arrived ▪ Seminars, webinars and events in the ▪ Gateway to Global UK and overseas ▪ Tradeshow Access ▪ Growth for experienced ▪ Programme exporters on setting up in the UK best location identify contacts and plan events ▪ Help finding top quality staff ▪ UK Advisory Network access to trusted commercial providers ▪ Support with visas ▪ Tailored assistance and entry to the UK for entrepreneurs to investigate a potential export market support to attend overseas exhibitions. ▪ Open to Export community-driven ▪ Overseas Business website for SMEs ▪ Review to assess ▪ Risk advice communication ▪ Market visits and with overseas trade missions ▪ Overseas Market customers introduction ▪ Service to access Source: Department for International Trade 2

How does the UK support doing business? 3 Presentation title - edit in the Master slide

UK is the 5 th largest economy, 3 rd most innovative country in the world Level of innovation Country World-class industries Score (2016) 1 Switzerland 2 Sweden 63. 57 3 United Kingdom 61. 93 4 USA 61. 40 5 Finland 59. 90 … … … 33 Hungary Largest IT industry in Europe 66. 28 44. 71 DIT support: 4 2 nd largest aerospace industry in the world Advanced transportation industry • • • Tailored market research Comparative analyses Access to Sector Specialists Source: World Bank; UNCTAD, 2014; Global Innovation Index 2016

Great Britain is ranked 6 th place globally when it comes to ease of doing business Ease of doing business Country Singapore 1 New Zealand 2 Denmark 3 South Korea 4 Hong Kong 5 UK 6 Germany 15 Ireland 17 Hungary 42 DIT support: 5 24 hours to register a business online Ease of Doing Business Rank 1 GBP required share capital Trust towards entrepreneurs • • • Registering a UK entity Opening a bank account Obtaining VISA, work permits Finding office premises Help finding partners (UK Advisory Network) 1. Index consists of such components as: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency Source: World Bank, Doing Business 2016

The UK government is doing more than ever to create the best conditions for doing business Examples of government support initiatives Attractive tax regime R&D credits Patent box • Corporation tax rate of 20% • Companies with qualifying R&D ▪ Patent Box is a preferential tax from April 2015 is the lowest in G 7 • Further reductions will bring down the rate to 17% by 2020 expenditures are entitled to a deduction on their taxable profits • For SMEs, for example, the deduction can reach 230% DIT support: ▪ regime for profits arising from patents A reduced rate of 10% will be gradually phased in by 2017 Overview of government support programs • Assess eligibility for state funding / aid • 6 • Assistance on how to apply

Almost every region in the UK offers various incentives to companies Types of development deals Local Enterprise Partnerships Enterprise Zones Catapult Centres • 39 Local Enterprise • 26 Enterprise Zones (48 in 2017) • 11 Catapult Centres allow Partnerships between the government and businesses, which work together to drive business growth and provide the best local advice possible DIT support: offer a combination of reduced taxes, simpler planning rules and a package of financial incentives to encourage businesses to establish themselves there • businesses to access equipment and expertise They bridge the gap between research and business, and help commercialize the outputs Select the right location for your business • Overview of local accelerators / incubators • 7 • Introduction to the right people / organizations

In 2017 there will be 48 Enterprise Zones across the UK providing a wide range of benefits Industry Advanced manufacturing / engineering Aerospace Agri Food Automotive Business Services Chemicals Construction Creative industries Energy Financial Services ICT Industrial biotechnology Low Carbon Industry Pharmaceuticals & Healthcare Retail & Logistics Security Transport 8 No of zones 17 10 4 5 8 1 4 5 14 3 5 4 7 10 4 1 5 Growthboosting areas ▪ ▪ Financial benefits (business rate discounts) Available infrastructure Simplified planning and construction Tax relief on investments

Eleven catapult centres breach the gap between business and research Catapult centres in the UK Cell Therapy Digital Energy Systems Semiconductor Applications High Value Manufacturing Development, delivery and commercialisation of cell therapies Value creation through sharing of data and reuse of creative content Support for companies and Government in developing products Acceleration the use of compound semiconductor devices Growth and success of manufacturing in the UK Medicines Technologies Offshore Renewable Precision Medicine Developing technologies for preclinical evaluation of medicines Development and commercialisatio n of innovative offshore solutions Development and delivery of new products and services 9 Future Cities Creation of integrated products and services for world’s future cities Satellite Applications Transport Systems Growth across the economy through the exploitation of space Exploitation of potential market from new products and services

The government supports entrepreneurs who decided to set up in the UK Examples of support initiatives for start-ups and SMEs Global Entrepreneur Programme Innovate UK Soft landing packages • Global Entrepreneur Programme • Government program to fund, ▪ Preferential conditions with the • (GEP) helps to accelerate the business growth A team of dealmakers acting as mentors can provide introduction to network of potential investors • DIT support: support and connect businesses Various grants ranging between £ 5, 000 and £ 10 million for the development of innovative products or services support of our local Investment teams across all regions in the UK, such as preferential terms at co-working spaces – e. g. free desk for 6 weeks or reduced rates Referral to GEP investor network • State aid funding guidance • 10 • Information about upcoming events

The UK offers an exceptional startup ecosystem Strongest VC environment outside • £ 3. 6 bn of VC financing for the UK tech sector in 2015 – a 70% increase from 2014 Business angels are the UK’s main source of early-stage investments Vibrant Business Angel of the United States • Fast-growing start-up clusters, Community • incubators, co-working spaces • 11 Well-developed accelerator In 2016, there approximately 30 accelerator programmes in the UK Support of the government More than 300 incubators across all industries, with an average success rate of over 95% programmes • UK-based start-ups benefit from the government support and UK-wide and regional incentives and funding Source: KPMG 2016, London&Partners 2016

A range of funding opportunities is available for UK companies • Collaborative funding for technology that is closest to market Matched (typically 50%) funding basis • 12 The UK’s innovation network – a platform for events, funding and networking Grants for a proof of concept, a proof of market and development of prototype • • • Stimulates innovation & economic growth in the digital sector by supporting SMEs and early stage entrepreneurs

The UK government continues to support business in spite of the results of the EU referendum Overview of the process following the referendum Negotiations EU Referendum • On 23 th June 2016 the British • population decided that the UK should leave the EU More than 30 million people voted; 52% were for leaving the EU, 48% for staying in • To leave the EU, the UK has to • invoke the Article 50 of the Lisbon Treaty After invoking the Article 50, the EU and the UK have 2 years for negotiations The New Relationship ▪ The shape of the new relationship ▪ ▪ will be decided through the negotiations Until the final split, the UK remains the member of the EU Regardless the outcome, the UK supports business DIT support: • 13 Unchanged support foreign investors

How to set up in the UK? 14 Presentation title - edit in the Master slide

Setting up in the UK comprises several formal steps The process of setting up in the UK 1 2 3 Decide on legal structure of your business Register at Companie s House to incorporat e your business Set-up a business bank account 4 5 Tax – Payroll Corporatio (PAYE) – n and VAT registration at HMRC s 6 7 8 Search for property Recruit staff Obtain business insurance “Your DIT project manager can help with introductions to commercial partners who can process the majority of requirements identified” 15 Source: UKTI 2016

The majority of foreign investors will establish a “Registered Company” when setting up in the UK Examples of possible forms of UK presence Methods of forming a UK Entity Opening a business bank account Registered Company Ø If you intend to trade in the UK, a UK bank • • Private Company Limited by Shares Private company limited by guarantee Private unlimited company Public company limited by shares Other forms of UK presence • • • 16 A UK Establishment (Limited) Partnership Limited Liability Partnership Joint Ventures European Public Limited Company Ø Ø account is needed and expected A UK bank account gives your business credibility in the UK The following may be required • Business customer application form • Mandate for companies registered under the Companies Act • Registration of the company • identification and verification of address • Company structure chart • Bank statements • Audited accounts Source: UKTI 2016

Why is it important to remember about cultural differences? 17 Presentation title - edit in the Master slide

There a few important aspects of building a business relationship for UK entrepreneurs Small talk Gentlemen’s agreement Quick and simple communication Names instead of surnames 18 ‚With Britons, you have to ease into the conversation. You cannot start a discussion without a „How are you? ”. My interlocutor knows how my trip to the meeting went and what I think about the weather. That’s how we set the mood for our conversation. ’ An entrepreneur enjoying success in the UK

UK entrepreneurs are less direct in their communication What does a Briton say? What does a Hungarian hear? What does a Briton think? I hear what you say He accepts my point of view I disagree and don’t want to discuss it further That’s not bad That’s good That’s terrible Quite good Disappointing 19

How does the Department for International Trade support entrepreneurs? 20 Presentation title - edit in the Master slide

DIT offers flexible support packages for every aspect of your investment Our Top 10 support services 21

We support your expansion with information on the UK market and help you settle every step of the way Our services to international investors in the UK are free of charge and commercial-in-confidence. Not sure which country is best for your business? ▪ Market information ▪ Business insights ▪ Events / conferences Already decided to bring your business opportunity to the UK? Already established in the UK, but looking to expand your business? ▪ Choosing the right location ▪ Relationship building ▪ Accessing finance ▪ Finding premises ▪ Recruiting skilled staff ▪ Opening a bank account ▪ Tax and legal advice 22

We supported investors from various industries – from production, to sales or R&D activities A health tech company, has set up in the UK, looking to provide innovative genetic testing solutions A glass manufacturer has acquired largest insulted glass units manufacturer in the UK and plans to create 300 jobs A manufacturer of research and diagnostic products expanded its UK branch and sales division A manufacturer of industrial knives has acquired its distributor in the UK and is expanding its sale activities A software company set up a UK tech and sales office, also interested to create an academic research centre A manufacturer of 3 D printed prosthetic sockets, is engaged in clinical trials and R&D in the UK A software company is growing its UK presence and client base as a top quality outsourcing service provider Source: Department for International Trade 24

Many Hungarian companies have already entered the UK market 25

We are currently supporting 78 companies from Hungary Examples of Hungarian companies we supported in setting up in the UK Green solutions services provider • A Hungarian company specialized in energy efficiency and green solutions • Currently hires 3 employees in the UK • The client aims to relocate its whole low carbon construction business to the UK Room escape experience provider • A Hungarian company providing a room escape experience and team building activities • The company has set up their escape room in London • Now they are planning to expand to other cities 26 78 projects

How to start cooperation? STEP 1 Contact the local DIT Inward Investment Team STEP 2 Start a conversation about your plans and how we can assist you STEP 3 Benefit from our support! You can contact your local DIT Investment representative at: Esztella. Fazekas@dit-cee. com 27

DRAFT 28