Do you want to start a business? If so, you’re not alone. Many internet entrepreneurs are asking about the easiest country to start a business in 2021. This is because finding customers for your products or services is not the hardest part of running a business, but getting one started is the trickiest bit.
For that reason, some entrepreneurs opt to start their businesses away from their home country because of certain disadvantages. These include high taxes, lack of human capital, poor communication and transport infrastructure, political instability, stringent public policies, and application processes, among others.
The article will provide you with a list of the top 10 countries to start a business in 2021.
Factors to Consider when Selecting a Country to Base Your New Business
As entrepreneurs break into the global market, they are looking for economies where the cost of starting and operating a business is reasonable. They are keen on the following 5 factors.
Tax implications on founders, investors, and employees now and in the future is one of the key factors to think about when determining the country to base your business in. How is the country’s tax relief on returns? What about its income tax liabilities and capital gains liabilities? Is there any negative tax impact in the future?
For example, businesses in the US need to get online IRS EIN Tax ID to identify their businesses and for reporting employment taxes. The registration for EIN Tax ID can be challenging for foreigners looking to set up a business in the US. That’s why it’s advisable to work with a registered agent who will help you acquire thget online IRS EIN Tax IDe necessary documents to run your business.
Investors are keen on tax implications because they want to understand the tax relief they will get as an incentive for investing in a foreign country as opposed to their local jurisdiction. The tax incentive the government gives you can help you maintain the burn rate low even where the labor cost is extremely high.
The time taken to fully register your company matters. Thus entrepreneurs are keen to understand the requirements such as company filings needed, submitting documents online, the waiting period for approvals for utilities, the cost of documentation and registration. You need to understand whether the regulatory environment in this country is conducive for businesses.
Some countries have a strict residency requirement, while others are not. This is important because you might not have appropriate immigration status, or getting one might be tricky.
As much as you can get information from your lawyer and accountant, you still want to learn more from other entrepreneurs. In some geographies, founders share their experiences on forums which makes it accessible.
You want to learn the hurdles they faced incorporating their business in that jurisdiction, hiring and firing requirement, corporate governance requirements, and tax-related issues, as well as how they overcame these obstacles.
Human resources implications
It might be expensive to hire and retain employees in some jurisdictions, or there might be a shortage of human capital. These factors can affect your company when you want to upscale or downscale.
Top 10 Countries to Start Your Business
It’s one of the countries you can start and operate your business due to the following reasons.
- It has the best taxes because there is no capital gains, social security, and payroll taxes.
- It takes a single day to incorporate your business and two days to register a property.
- The country has a highly skilled and educated workforce.
- LLCs are independent legal entities separate from their shareholders.
Norway has a strong and stable economy and government. This is why you should start your business in Norway.
- It has well-established transport and communication infrastructures. Thus your communication with the government will be done digitally.
- Its workers are highly skilled in fields such as finance, IT, design, and more.
- Businesses have access to talent, investors, and industrial expertise.
- There is a great focus on tech-based startups and entrepreneurs.
Many international companies have their headquarters in this Asian country due to its strong investment opportunities. Thus it’s one of the top countries to start your business in 2021. Other benefits are:
- It’s ranked among the world’s wealthiest nations.
- It has no capital gains taxes.
- It has a strong and skilled labor force.
- Singapore is strategically situated and politically stable for business to thrive.
This Nordic country has modern Danish company law that conforms to the current EU legislation. These are great pros of incorporating your business here.
- It has the most flexible human resource rules globally, so you can upscale and downscale easily.
- It’s tax-efficient.
- It takes days to incorporate your business.
Hong Kong has a growing free-market economy due to the sound business policies that the region has enacted. This is why you should consider Hong Kong.
- It has a highly skilled and educated labor force.
- Hong Kong has well-designed and established communication and transport infrastructures.
- Since it imports food and raw materials due to limited natural resources, Hong Kong imposes no tariffs on imports apart from tobacco, methyl alcohol, hard alcohol, and hydrocarbon oil.
The Great White North has transformed its rural economy into urban and industrialized. You stand to benefit from the following factors when you start your business here.
- Very stable political environment.
- A huge skilled workforce.
- It has a very balanced bilateral trade with the US, giving investors a huge market tap into.
America is big and has 50 states with varying conditions for startups and entrepreneurs to choose from. Delaware is the home to most publicly traded companies. This why you would want also to start a business in the US.
- It is an innovation center as well as a leader in research and development.
- It has a wide range of funding sources such as angel investors, venture capitalists, banks, and investment companies.
- America has a skilled and diverse workforce.
Incorporating business in the UK will take one hour and $14 to set up your business. The British government has made it easy to operate a business here in the following ways.
Lenient tax rules because startups take time to break even and be profitable.
The government gives a lot of tax benefits to founders, investors, and employees.
The Swedish business climate is favorable for new foreign businesses. It’s also the home of highly innovative corporations. This is why you should enter the Swedish market.
- Highly skilled workforce.
- It has a business-friendly culture.
- There is little bureaucracy and world-class infrastructure.
The Northeast Asia country has the market-leading corporations and the test bed for the tech hub. Here are other advantages of starting a business here.
- The government supports foreign investors through its Foreign Investment Promotion Act in order to attract new international talent.
- It offers tax reliefs.
- It has a highly skilled workforce.
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