Snap Inc., the company behind Snapchat, is making its international headquarters in the UK. The company will book revenues from its sales made in any country where Snapchat has no local entity or salesforce.
Google, Facebook, Apple, Twitter and Uber have chosen UK's neighbors, such as Ireland, Netherlands and Luxembourg as their European bases to take advantage of lower tax rates. The multi-billion-dollar valued firm, which is expected to go public this year, is unusual among the top US tech companies mentioned above.
The company says it chose to come to the UK due to the strength of its tech sectors and creative industries, despite the threat of Brexit disruption. The Snapchat teams in Australia, Canada, France and Saudi Arabia will book through the UK as well.
Each day, more than 150 million users worldwide use the app so it is absurd not to advertise job openings. The company is currently advertising 15 positions, but the number of Snapchat staff in the UK has already grown from nine to 75.
UK offers a pool of well-educated English-speaking labor, access to tech research hubs like the University of Oxford and University of Cambridge, and a good international legal and business system. Snapchat's decision to make its international headquarters legally in the UK, named Snap Group Limited on Companies House, will avoid the fierce criticisms experienced by other companies, including high taxes.
Snap Inc. is the latest US tech company to commit to the UK. Despite economic uncertainty surrounding Britain's vote to leave the European Union, tech giants like Facebook and Apple, announced expansion plans in the UK as well.
Snap Inc. recently made a successful move into the market of 'wearables'. In 2016, Snapchat Spectacles with built-in camera was one of the major tech hits.