27 Sep Which is the best country to start a business in the world?
Starting a business is always challenging, but creating a business in a different country can be even more so. There are several things to consider, from corporate tax rates and trading laws to what kind of business you hope to run and where your market will likely be.
You should also remember that some countries have different requirements and standards for starting a business, so it’s essential to investigate these before setting out to start your business. In this blog, Shuraa Business Setup will help you to learn more about the Best Countries to Start a Business.
What are the Best Countries to Start a Business?
Here are the Best Countries to Start a Business:
- United Arab Emirates
- United States
Which are the Best Countries to Start a Business?
1. United Arab Emirates
- Economic Output (GDP): Approximately US$421.1 billion
- Corporate Tax Rate: 9% (Effective from June 2023)
- Prime Business Launch Location: Dubai
Different points are highlighting the advantages of starting a business in the United Arab Emirates (UAE):
- Diverse Business Landscape: The UAE is a blooming hub for businesses, offering many opportunities beyond its well-known sectors like real estate and consultancy. Entrepreneurs can explore various niches in the market, benefiting from the country’s diverse and dynamic business ecosystem.
- Free-Trade Zones: The UAE’s free-trade zones are a significant attraction for business owners. These zones, often located near seaports and international airports, allow businesses to import, trade, and export goods with very minimal tax rates. This favourable tax environment extends to software, research, and financial-based companies, making the UAE a preferred destination for business establishments.
- Low Corporate Tax Rates: While there is no corporate tax in Dubai, it’s important to note that corporate tax will be introduced in the UAE as of June 2023. However, the tax rate is set at approximately 9%, which remains among the lowest globally. Significantly, this tax change will not impact businesses operating within the free-trade zones, maintaining their tax advantages.
- Strategic Location: Situated at the crossroads of the East and West, the UAE holds a unique geographical advantage. This central location facilitates business connections that might not have been possible otherwise. For entrepreneurs seeking networking opportunities and potential collaborations on a global scale, the UAE is an ideal starting point for their ventures.
- Economic Output (GDP): Approximately US$748 billion
- Corporate Tax Rate: A favorable 8.5%
- Ideal Business Launch Location: Zurich, which holds the 68th position globally
Different points are highlighting the advantages of starting a business in Switzerland:
- Strategic Economic Partnership: Despite not being an EU member, Switzerland maintains a close economic alliance with the European Union. Swiss businesses benefit from access to the European single market, facilitating free trade with EU member countries. This advantageous position eliminates many technical and legal barriers, making Switzerland an ideal launchpad for an international career.
- Highly Skilled Workforce: Switzerland prides itself on having one of the world’s top-notch workforces. As of September 2022, the country achieved an impressively low unemployment rate of 1.9%, the weakest in two decades. Furthermore, Switzerland stands out for its exceptional employee retention rate, with only a 10% turnover, indicating a stable and experienced workforce.
- Political Stability: Switzerland has a long-standing history of political stability, making it a secure environment for business ventures. The absence of frequent political turmoil ensures a stable economy, well-established trade agreements, and a clear trajectory for the country’s future. These factors provide a strong foundation for entrepreneurs to thrive and plan for long-term success when considering where to start a business.
- Economic Output (GDP): Approximately US$418.6 billion
- Corporate Tax Rate: A competitive 12.5%
- Optimal Business Launch Location: Dublin, which ranks 46th globally
Indeed, there are different points derived from the provided information about Ireland as an attractive destination for starting a business:
- International Appeal for Entrepreneurs: Ireland is a magnet for entrepreneurial expatriates, drawing business-minded individuals worldwide. Dublin, the country’s capital, consistently ranks among the top cities globally for launching new businesses, showcasing its international appeal to entrepreneurs.
- Competitive Corporate Tax Rate: Ireland’s corporate tax rate of 12.5% is shallow and one of the most attractive aspects for businesses. This rate is particularly advantageous for startups that may not have substantial profits initially, as corporate tax is levied on profits.
- Market Advantage of Smaller Population: With just over 5 million people, Ireland offers a unique startup advantage. The smaller market size increases the likelihood of standing out from competitors, finding specialised market niches, and achieving profitability faster.
- Robust Export Opportunities: Ireland’s export market has demonstrated impressive growth in recent years despite challenges like COVID-19 and Brexit. Notably, the value of Irish food, drink, and horticulture exports increased by 4% in 2021, reaching a record €13.5 billion. Ireland also excels in exporting pharmaceuticals and tech-based products, making it an attractive destination for businesses seeking global markets.
- Export-Oriented Economy: In 2021, Ireland exported goods worth over $190 billion across various sectors, with the United States accounting for nearly 31% of these exports. This export-oriented focus positions Ireland as a favourable choice for businesses seeking to tap into international markets.
- Global Corporate Presence: Ireland hosts the European headquarters of numerous prominent multinational companies, including 8 of the top 10 global pharmaceutical companies and 50% of worldwide financial service companies. Social media giants like Twitter, LinkedIn, and Facebook maintain their European headquarters in Ireland. This concentration of global companies provides extensive networking opportunities rarely found elsewhere, making Ireland an ideal environment for startups.
- Economic Output (GDP): Approximately US$340 billion
- Corporate Tax Rate: A competitive 17%
- Optimal Business Launch Location: Singapore City
Here are different points highlighting the advantages of starting a business in Singapore:
- Flat Corporate Tax Rate: Singapore offers a flat corporate tax rate of 17%, providing clarity and predictability for businesses. This competitive tax rate encourages investment and allows companies to plan their finances effectively.
- Extensive Free Trade Agreements: Singapore has forged 27 different free trade agreements (FTAs) with various countries worldwide. These FTAs substantially reduce or eliminate tariff charges, often barriers to international trade. The elimination of such costs and a straightforward business setup process positions Singapore as an attractive destination for entrepreneurs.
- Stable Government and Economy: Singapore enjoys a reputation as one of the most politically stable countries in its region. This stability extends to low crime rates and a flourishing economy. The tough environment provides a secure backdrop for businesses to operate and succeed.
- Resilience in Economic Recovery: Despite experiencing economic challenges during the pandemic due to its reliance on international trade, Singapore has demonstrated stability. The country has successfully navigated the challenges and is in a phase of continuous economic growth, making it a favourable location for business ventures.
- Networking Opportunities in Asia: Singapore is strategically positioned as a hub for networking with significant businesses in mainland Asia. It serves as a meeting point for international companies, including giants like Google, that have chosen to establish their presence in the city-state. For entrepreneurs seeking connections and collaborations with Asian and global industry leaders, Singapore is an ideal choice for starting a business.
5. United States
- Economic Output (GDP): A staggering US$20.94 trillion
- Corporate Tax Rate: 21%
- Ideal Business Launch Location: San Francisco
Here are different points highlighting the advantages of starting a business in the United States:
- Tech Hub in San Francisco: San Francisco, located in the heart of the San Francisco Bay Area, is renowned for hosting the highest concentration of high-tech companies in the United States. This area offers easy access to Silicon Valley, known for its innovation and a pool of talented STEM professionals. With numerous Fortune 500 companies, over 1,900 technology firms, 120+ biotech companies, and 200+ cleantech companies, San Francisco provides an inspiring environment for tech-oriented entrepreneurs.
- Foreign-Friendly Business Environment: The United States is recognised as one of the most foreign-friendly countries for starting a business. Its startup ecosystem is rated first globally, welcoming entrepreneurs from around the globe to establish their ventures in a diverse and dynamic market.
- Booming Business Sectors: Beyond technology, the USA is a successful hub for various industries, including e-commerce, retail, education, and energy and environment businesses. The diversity of sectors allows entrepreneurs to explore a wide range of opportunities and niches within the market.
- Global Recognition: Registering a business in the USA instantly bestows international recognition, enhancing credibility and attractiveness to potential financial backers and international partners. The country’s prominent position in the global market ensures that businesses have access to worldwide economies, providing unrivalled growth prospects beyond the startup phase.
Considering a New Overseas Adventure?
With over two decades of experience, Shuraa Business Setup has been a trusted partner in helping individuals transition to new lives abroad by offering top-tier services for establishing your business.
Finding the Best Countries to Start a Business is a difficult challenge. However, one concern can be eased from your mind. Shuraa Business Setup provides exceptional resources for launching your overseas venture. Contact us today to learn more about initiating your international business journey.
Contact Shuraa Business Setup today for a free consultation.