So, you’ve worked hard for 15 years of your life. You lived with extreme frugality, saved, and invested every bit you could, so one day, you can say goodbye to your job and start your own business. The time has come, and you have the money to set up a small business you’ve always dreamt of. But you don’t want to do it in your country.
There can be numerous reasons for this. Maybe there’s no market in your country, maybe there are no tax breaks, or perhaps the startup costs are too high.
Now, you need to find a country where you can set up your dream business. Most people think of moving to the US, the UK, or Canada. While these places are great, they can be more expensive and competitive. There are other, easier places, too.
Let’s dive into some of the best countries to pick if you’re looking to start a business.
Denmark is one of the most feasible countries in Europe for starting a business. The country has an effective digitization process, which allows seamless registration of a new business, acquisition of a “NemID” signature, and employee insurance registration. The procedures are so simple that they can be done in one day, and you can start a business for under 100 dollars. Here are a few reasons to pick Denmark to start your business.
- The rules for hiring and firing are flexible.
- You can register your company and finish the incorporation process within days.
- There are no resident requirements for management.
- The country is tax-efficient compared to other nearby countries.
- The company law in Denmark is modern and in accordance with the EU legislation.
Another Nordic country on the list, Norway, has emerged as one of the hotspots for new entrepreneurs, thanks to the recent developments in the technology and digital sector. The country is known to have one of the simplest systems to handle insolvency filings. The startup procedure is also quick, and it usually takes four days to get your business on paper in Norway. Benefits of starting your company in Norway include:
- Excellent for digital nomads, as all communication is digital
- The highly-skilled workforce in IT, design, and finance
- Focus on tech-based businesses
- Stability of economic and governmental growth
- Part of the EU
- Well-developed transport and communication infrastructure
Singapore continues to provide a business-friendly and secure environment for new companies. For instance, resolving commercial disputes in Singapore takes around 150 days, which is the shortest time in the world. Many international organizations have their headquarters in Singapore due to the strong trading and investing opportunities the country provides. Some reasons to do business in Singapore are:
- One of the wealthiest nations in the world
- Politically stable
- Easy location to do business
- Strong labor force
- No capital gains or dividend taxes
New Zealand is regarded by many as the best country to do business in the world. For starters, it takes only a few hours and a simple online procedure to start a business in NZ. According to the World Bank, New Zealand is the best country for starting a business and protecting minority investors. The country also has free trade agreements, efficient tax codes, and an open political system. Here’s why you should pick NZ for starting a business.
- Starting a business takes less than a day
- Property registration takes less than two days
- Labor costs are low
- There are no taxes on payroll, social security, capital tax gains, etc.
The British Virgin Islands (BVI)
If you’re a digital nomad or internet entrepreneur, BVI is an excellent place to move to. This British Overseas Territory has one of the most reputable company formation setups of all offshore jurisdictions. Here are some pros of becoming a digital entrepreneur in the British Virgin Islands.
- The company is serious about new companies.
- BVI has been established as an offshore center.
- Banks feel comfortable with setting up an account with new companies.
Another European country on the list, Georgia, is a middle-income country that has been benefitting from a steady and emerging economy. It is one of the best countries to start a business, as it takes only two days to register a new business. Additionally, the business registration process costs around $40 only. Here are some benefits of starting a business in Georgia.
- Free industrial zones, with no corporate tax
- Special trade company, with allowance to sell and re-export foreign goods
- International Financial Company (IFC), allows seamless conduction of business outside Georgia
- The custom regime for export companies
The US is one of the go-to countries for aspiring entrepreneurs. Even though the tax rates in the country are quite steep, it has some of the lowest business operating costs. This includes lower costs for supplies, logistics, offices, and more. However, the country doesn’t have an attractive business environment when compared to others on the list. Here are a few reasons why you should think about starting a business in the US.
- A skilled and diverse workforce
- The United States is regarded as the global leader in research, development, and innovation
- A plethora of funding sources available, like venture capitalists, angel investors, etc.
However, the US is a big country, and there are 50 states to choose from. Furthermore, each state has different laws, so the ease of doing business in each state can vary.
Let’s make this easier for you. Delaware is considered to be the most business-friendly state in the US, and more than half a million corporate entities have their legal home there. Here’s why you should pick Delaware if you’re certain that you want to start a business in the US.
- A minimum initial filing fee
- Tax breaks for LLCs
- No business license required
- Non-residents don’t need to pay personal income tax
- Limited regulations in intra-state transactions
Let’s conclude the list with the United Kingdom, a sovereign country known for its quick and easy business setup process. The World Bank report suggests that the UK has low business incorporation costs. The start-up costs for businesses in the UK are USD 121, which is lower compared to global norms. Here’s why you should start a business in the UK.
- Starting a company takes one hour and £14.
- Flexible tax laws for new companies
- Tax benefits for investors, founders, and employees
There are other countries as well that are great for starting a business. If you’re not certain of incorporating your company in the countries listed above, take a look at some of these honorable mentions.
- Canada: Almost similar rules as the US, but with more taxes; aim for Alberta if you choose Canada
- Malaysia: A booming economy that provides all the benefits of larger markets and with fewer costs
- South Korea: Excellent location for tech and innovative businesses
- Switzerland: Great banking options
- Sweden: More or less the same as Norway, but with a less optimized environment
Starting a business is one of the best decisions you could ever make. But if you start a company, you surely want it to be successful. And the location plays a critical role in the success of your business. So, make sure to get a detailed overview of the company and the tax laws of a country before moving there.