Entrepreneur with global ambitions? You’ll want to know where’s best to form a company; and which territories provide the most fertile ground for foreign business owners to build and grow their brand.
In this list, we give you a closer look at five countries worth considering as places to establish your headquarters.
5 best countries to form a company
Check out our list of the top 5 places to form a company, and learn about the advantages offered by each country:
1 – The United States of America
Where specifically in the US, you may ask? Well, allow us to point you to Delaware – which is known as a “leading domicile” for both US-based and international corporations. Despite being the second smallest state in the country, Delaware has gained fame for being the legal home of over 66% of Fortune 500 companies, according to the official Delaware website.
In fact, incorporating in Delaware has many amazing benefits – such as unmatched flexibility. For example, the law allows a company to have one person as its director, officer, and shareholder all at the same time. Shareholders, directors, and officers do not even have to be residents in the state. Privacy is another advantage since the personal details of LLC members and corporation shareholders can be kept confidential.
Delaware is also known as a “tax haven” for its business-friendly tax rate system. By filing a Corporate Income Tax Return, businesses are only required to pay an 8.7% federal taxable income. What’s more, businesses that are incorporated in Delaware but do not conduct actual business there are not required to pay the same taxes.
On top of that, investors have a high preference for corporations from the state, which is why it’s actually a wise move to incorporate in Delaware at an early stage, rather than having to convert your company when an investment banker or venture capitalist lists this in their essential criteria for funding – as is often the case.
2 – New Zealand
Based on several key indicators, New Zealand has been named the world’s easiest country to do business in by the World Bank Group’s 2020 Doing Business research. New Zealand also has “the shortest time to start a business” at 0.5 days and, along with the nation of Georgia, has “the lowest number of procedures required.”
According to the official NZ website, there are “few restrictions on establishing, owning, and operating a business” in the country. Anyone can reserve a business name and form a company by spending a few hours in the government’s official portal. Business structures are also simplified since three structures are commonly used, namely sole trader, partnership, or limited liability company. Depending on your choice, you will later need to pay taxes using an individual tax number or a company tax number.
For additional information about market opportunities, you may head over to the Statistics New Zealand website if you want to research and find tools relevant to your industry. You may likewise check out business.govt.nz if you’re planning to start a business from scratch or buy an existing one in the country.
3 – Singapore
Singapore is another great option where potential business owners can form a company. On the Ministry of Manpower website, this Southeast Asian nation has been described as “an ideal location for global businesses to site their headquarters.”
The so-called Lion City has always attracted local and international entrepreneurs by offering numerous benefits for their businesses. For one, registering a business can easily be done via the Bizfile website. Meanwhile, foreign business owners can conveniently access helpful resources available online via the Monetary Authority of Singapore, Legal Services Regulatory Authority, and Enterprise Singapore.
The government also stands ready to lend aid to those wanting to grow their business in the country. The Economic Development Board has an extensive directory that helps connect entrepreneurs with potential business partners. They also provide updates on business-related events such as conferences, exhibitions, trade shows, and workshops.
In addition, you can check out the Business Grants Portal where you can learn about how you can qualify for government grants as you form a company.
4 – Denmark
Consistently named by The World Happiness Report as one of the happiest countries across the globe, Denmark isn’t just a great place to live in but also a perfect spot for starting a new business.
Because of business-friendly regulations and good governance, companies can enjoy “flexible hiring rules and a lack of corruption” which contributes to a strong economy and wider public trust.
As Infosys Executive Vice President and Global Head of Corporate Development & Ventures Ritika Suri once said:
“We see Denmark as a global hub of world-class innovation with talented people, a good education system, and a track record of entrepreneurial success.”
Moreover, the country’s official website has reported that the government has “passed several economic relief packages for all business in Denmark with a CVR number – including fully foreign-owned companies” as part of their Covid-19 pandemic response.
5 – South Korea
In 1998, The Republic of Korea enacted the Foreign Investment Promotion Act which aims to “promote foreign investment in Korea by providing necessary support and benefit and to contribute to the sound development of the nation’s economy.”
Over the years, South Korea has performed excellently and “displayed global competitiveness” in different fields of industry such as automobiles, chemicals, electronics, and telecommunications, among others. More recently, the country has become a hot spot for fashion, food, movies, music, television series, video games, and webtoons.
No wonder, the country is considered to be “one of the most important global economic powers today.”
Entrepreneurs should consider hiring both a lawyer and an accountant before making a final decision. This is important to ensure the expert legal and financial guidance needed in studying the pros and cons for any country of choice. Learning about existing laws and requirements is always crucial for anyone wanting to launch a newly-formed business venture, especially in a foreign territory.