Top 10 countries and factors to start up your enterprises overseas

These days, many entrepreneurs are struggling in finding countries to start their businesses with the similar question as “ What are the best countries to start a business?”. 

An offshore incorporation can offer many advantages for entrepreneurs. They can choose the best strategic jurisdiction from which to run their businesses. However, many enterprises are lacking information about which countries are good in doing strategic jurisdictions.

This article is going to point out the factors to consider when incorporating abroad and provide the top 10 countries for entrepreneurs to operate their businesses.

Factors to consider when deciding on a location for your business

• Tax implications and treaties 

One of the most important factors that can affect your and your investors' returns is whether you, your employees, and co-founders will face tax consequences.

Consider things like tax breaks for founders or switching to a different geography in the future. Consider both income tax liabilities and capital gains liabilities.

Consider whether your local jurisdiction will have a negative tax impact on potential future investors in the future.

• Investors

One important reason why jurisdiction matters is that investors optimize around tax implications. There are also other issues in the final legal documents that they may prefer to deal with in their home jurisdiction rather than in new ones with which they are unfamiliar. They may have a preference for where you incorporate because of the tax benefits they may receive as a result of investing in your company. Furthermore, where you incorporate may have an impact on company governance. Depending on where you incorporate, certain company governance structures are imposed on your company, and investors may have an opinion on that.

• Paperwork

One of the most difficult aspects of making this decision is the paperwork. This includes the reporting interval as well as other requirements, such as company filings required by the country in which you incorporate.

• Residency

Some geographies may require founders to reside there, while others do not. Keep this in mind, especially if you lack the necessary immigration status or are having difficulty obtaining it.

• Human resources

If necessary, your employees may find it difficult to relocate to certain countries. Hiring may also be a challenge due to a lack of human capital or the cost of hiring and retaining employees.

There may also be limitations on how you can hire and fire employees, which may influence how you upscale or downscale your company's employees.

• Governance

Corporate governance requirements differ from one country to the next. Because you will have to comply with some of these requirements, you should become acquainted with these variables before making your decision.

• Mergers & Acquisitions

When your company is sold, merged, or floated, it will have to go through a process. This process is straightforward and simple in some countries, making it simple for potential acquirers to understand and complete quickly. It may be less well-known in other countries, causing delays or complications.

Top 10 countries to start a business

1. British Virgin Islands

The British Virgin Islands (BVI) is the best place to incorporate. The BVI has the most reputable company formation setups of any offshore jurisdiction.

One of the most advantageous aspects of a BVI International Business Company is that it can be combined with a bank account in a reputable jurisdiction, such as Hong Kong or Singapore. Asian banks are especially eager to collaborate with BVI companies.

2. Denmark

Denmark is seen as one of the easy countries in Europe to incorporate a business by having some great pros going for it:

With "flexicurity," you get the world's most flexible hiring and firing rules, lowering the costs of scaling up or down business operations.

• You can register and complete your incorporation in days, not weeks.
• There are no residency requirements for management positions such as CEO or Board of Directors.
• There are no notarial deeds.
• In comparison to other Nordic countries, establishing a business in Denmark is tax efficient.
• Danish company law is up to date and in line with current EU legislation.

3. Norway

Norway has a strong economy, and most government communication can be done digitally.

The process of registering a property is quick, and complying with tax laws is simple. Insolvency is also inexpensive in Norway, with fees averaging 1% of the bankrupt entity's value.

4. New Zealand

New Zealand is considered one of the easiest countries to do business in, because

• Incorporating a business takes only a day,
• Registering a property can be done in two days,
• Workforces are skilled and educated,
• The labor costs are low,
• There are no payroll, social security or capital gains taxes

5. Singapore

Singapore is well-known for the large number of international corporations that have their headquarters there. The city attracts global entrepreneurs and leaders due to strong trade and investment opportunities, and it has been named the most competitive Asian country to start a business.

6. Isle of Man

The island has a customs agreement with the United Kingdom that facilitates trade, but it is legally separate from both the United Kingdom and the European Union. When it comes to doing business or holding investments in other jurisdictions, a company formed in the Isle of Man has some distinct advantages.

7. Belize

Belize is a good place for an internet entrepreneur to incorporate because:

• Banks allow you to set up an account without being on site in Belize
• Great for merchant accounts
• Variety of different businesses
• No taxes
• Low setup costs
• Banks allow high-risk merchant accounts

8. Nevis

In terms of asset protection, Nevis is one of the best places to incorporate. If you own a business that is prone to liability, it makes sense to go somewhere where the claimant must post a bond in order to sue you. To sue your company, you must first file a suit in Nevis and pay for the court proceedings.

9. United States

United States a good country to start a business in:

• The workforce is diverse and skilled.
• Recognized leader in research and development as well as innovation.
• Variety of funding sources: investment firms, banks, venture capitalists and angel investors

10. United Kingdom

For the following reasons, incorporating a company in the United Kingdom is both quick and inexpensive, making it one of the easiest countries in Europe to set up and run a business in:

• Incorporating a company takes about an hour and costs £14.
• The tax authorities recognize that new businesses are rarely profitable in their early years.
• The British government provides various tax breaks to investors, entrepreneurs, and employees.