Best 4 Countries for Starting a Business -
The best countries around th world I have found to be best suited for first time entrepreneurs. These are based on the countries I have worked on it. If you have any other opinions you may share them.
You should start your business in a different country if:
Your country lacks a stable government.
Your government is charging exorbitant tax rates.
Your countrymen have a penny-wise pound-foolish mentality.
Believe it or not, most businesses shift their bases because of one or more of the above reasons. And let me tell you, there is nothing wrong with it. We travel to different states or countries for the best education, so why not for business?
So, which are the best countries to kickstart your business?
According to the World Economic Forum and my personal experience:
Singapore
Hong Kong
Switzerland
United Arab Emirates (UAE)
These are the best countries for giving wings to your business in 2024.
Which is the right pick for you?
There is no best country for business, but there is always a place that is the best for you to do business. So here I will tell you what makes the above countries so good for doing business. By the end of this article, you will get enough clarity to zero in on one location.
1. Singapore
Does the World Bank maintain an 'Ease of Doing Business' list? A total of 190 countries are a part of this list. And among the 190 nations, Singapore came 2nd. This is one of the reasons I am talking about it first.
Here are some key points which set Singapore apart from other nations:
a. Business Supportive Infrastructure
The Singapore government is carrying Lee Kuan Yew's legacy forward with distinction. Despite being a small island, Singapore houses the best real estate investment trust (REIT) highways, airports, flyovers, etc.
A major part of the GDP goes to developing the infrastructure. All this happens while keeping an entrepreneur's convenience in mind.
b. Strategic Geographic Location
If you are in Singapore, you will get access to other business hubs like Australia and China. Apart from dominating the business landscape, Singapore dominates the seaports as well. ~30% of the shipping lines pass through Singapore.
c. Top Level Security
If your country experiences political unrest, it is unsuitable for entrepreneurs. Singapore law and order is too strict for such incidents to take place. A country where people don't even dare to litter on the streets, speaks volumes about their law and order.
2. Hong Kong
Remember about the World Bank's "Ease of Doing Business" list? Hong Kong ranks 3rd in it. One of the "free-est" nations according to the Heritage Foundation's Index of Economic Freedom.
a. Geographic Location
You will gain access to the world's best economies through Hong Kong. It is sharing this benefit with Singapore. If you run an import-export business, you cannot ignore this country.
b. Competent Workforce
Hong Kong houses some of the best minds. The citizens are multi-skilled and multilingual. This makes it easy for foreigners to hire and work with the locals. Plus, there is a developed financial and professional services sector.
c. World Class Infrastructure
The state-of-the-art international airport, efficient telecommunication services, and modern buildings. Hong Kong deserves to be on this list, point blank. Let us not forget that it's ranking right below Singapore.
3. Switzerland
The World Intellectual Property Organization is ranking Switzerland as the most innovative country. Switzerland has held this rank for 11 consecutive years. This should give you a good idea that Singapore is a thriving ground for startups.
a. World-Class Infrastructure
Like Hong Kong, Switzerland is also home to the sharpest minds. It is a country that boasts high literacy rates and a tech-savvy population. As a business owner, what better can you ask for than a skillful workforce?
b. Tax Reliefs
The low tax rates (the biggest nightmare for business owners) make it a hot pick for business owners. Low tax rates are the number one factor in making a nation attractive for business owners.
c. Research and Development (R&D)
As you have read Switzerland is one of the most innovative nations. So this means the focus on education and research gets the utmost priority. Scientists and researchers get the respect they deserve. And this is why top companies set up their R&D centers here. And where there is a marriage of innovation and business, becomes a hot bet for startups.
Are you a tech enthusiast plus have a flair for entrepreneurship? If yes, then you now know which country to pick.
4. United Arab Emirates (UAE)
Going by the World Bank's report, the UAE is in the top 20 countries for ease of doing business. This is the report for 2021, and since then UAE has been taking massive strides to come into the top 5.
a. Tax Reliefs
Many businesses are making UAE their second home because of many conveniences. The biggest of them is the tax benefits. As you read, the UAE government is leaving no stone unturned in attracting investors. The government is removing all the possible roadblocks for a business owner. And what is a bigger nightmare than paying taxes?
If you have run a business earlier, you are not privy to this. Paying taxes feels like the government is sticking their hands into your accounts. This reduces your margins by a great degree.
And you will love to hear:
The UAE government offers 0% personal and corporate taxes. It sounds crazy but this is what it is.
b. 100% Foreign Ownership
The company setup in UAE is unique. Earlier when you were setting up a company as a foreigner, there was a need to hire a local sponsor.
In simple language, local sponsors are like locals who will get a certain stake in your company. They will get paid to help you set up your company.
It feels unfair right?
But now there is no need for this. In the UAE you will get complete control and ownership over your business. And to top it all, 100% ownership for all activities in the UAE free zones and some in the Mainland jurisdictions as well.
c. Strategic Location
This one is the cherry on the top. UAE is present near Africa, Asia, and Europe. This greatly boosts international trade due to the shorter time it takes for transport. And to double down on this, the government has set up world-class airports and seaports.
You must know by now, the UAE airport is among the best and most secure in the world. What stood out to me is: not having to arrive 3 hours before the flight and not having to wait an hour for your luggage.
This shows another aspect of the UAE government and its citizens. They understand the importance of your time. This is also why the UAE is making waves as one of the leading business hubs.
How can we help?
Here are the nations you should focus your attention on. As a business owner, you should look at your business like your child. And as a parent, it is your responsibility to give your child a safe place to nurture. So now your work starts.
And I will conclude this article by saying:
“There are no best places. But there is always a place which is the best for you.”
Which location do you want to pick for your business?
Nazir Mehrab
Founder & CEO of Gryffin Capitalist
UAE looks more promising to me.
Can you recommend some low cost business ideas for this country I can try out?