Of course it is – or else you wouldn’t be doing it. However, it is important to decide if you are targeting just one market (the UK) or using it as a gateway to Europe and, possibly, the wider EMEA market. For example, a company from Brazil may choose to set up in Portugal, or one from Quebec may favour France. The language and business culture factors in these cases may seem perfectly logical, but offsetting those decisions could be the difficulties of setting up in those countries, combined with non-flexible employment legislation.
Points in favour of the UK are the universal business and science language of English and the ease of doing business with the UK ranked fourth in the world (World Bank Doing Business 2011; www.doingbusiness.org).