In this article, we take a look at the 10 best countries to start a business. If you want to check out our detailed analysis of the friendly business policies, go directly to the 25 Best Countries to Start a Business.
10. Norway
Economic Freedom Index Ranking: 14
Ease of Doing Business Ranking: 9
Corporate Tax Rate Ranking: 14
Average Ranking: 12.3
Norway ranks ninth on the World Bank’s ease of doing business index, and 14th on The Heritage’s economic freedom index. The country has an independent judiciary and contracts are enforced reliably. Moreover, Norway’s workforce is highly educated and skilled.
9. Estonia
Economic Freedom Index Ranking: 7
Ease of Doing Business Ranking: 18
Corporate Tax Rate Ranking: 10
Average Ranking: 11.6
Estonia has 46 preferential trade agreements, being a member of the EU. Undistributed profits are not taxed in the country and commercial codes are applied with reliability, making Estonia one of the best countries to start a business.
8. Lithuania
Economic Freedom Index Ranking: 17
Ease of Doing Business Ranking: 11
Corporate Tax Rate Ranking: 5
Average Ranking: 11
Lithuania is one of the best countries for business, owing to a low corporate tax rate of 15%. The workforce is skilled, yet the wages are low relative to the EU average but employment regulations are comparatively stricter. A number of industries in the country are highly subsidized including transportation and energy.
7. Sweden
Economic Freedom Index Ranking: 11
Ease of Doing Business Ranking: 10
Corporate Tax Rate Ranking: 11
Average Ranking: 10.6
Sweden is one of the best countries to start a business in Europe. It ranks highly in almost all economic indicators and is positioned at the top third spot on the aggregate logistics performance index, indicating sophisticated infrastructure. The environmental industries are well positioned in the country, whose subsidies increased by 20% in 2020.
6. Ireland
Economic Freedom Index Ranking: 3
Ease of Doing Business Ranking: 24
Corporate Tax Rate Ranking: 4
Average Ranking: 10.3
Ireland has one of the lowest corporate tax rates in the EU, at just 12.5%, making it one of the most business-friendly countries in the world. Ireland also has an efficient regulatory framework. However, the cost of doing business is high, with high labor cost.
5. Taiwan
Economic Freedom Index Ranking: 6
Ease of Doing Business Ranking: 15
Corporate Tax Rate Ranking: 10
Average Ranking: 10.3
Taiwan is located in Southeast Asia. The country has a corporate tax rate of 20%, with the country ranking sixth on the economic freedom index. The government subsidizes R&D industries to boost industrial transformation.
4. Denmark
Economic Freedom Index Ranking: 10
Ease of Doing Business Ranking: 4
Corporate Tax Rate Ranking: 13
Average Ranking: 9
Denmark is another Scandinavian country on the list of best countries for business. It has a highly innovative market, and a highly skilled labor force. Moreover, Denmark is one of the least corrupt countries in the world, with a strong rule of law.
Denmark has a low corporate tax rate of 22%, and it is one of the top destinations for foreign capital investments. Copenhagen is also considered the logistics hub for Nordic countries, allowing for shipment of goods to 100 million Nordic consumers within 24 hours, making it the go-to place for shipping businesses in Northern Europe.
The country’s labor force is highly skilled, cost-efficient and flexible, and Denmark’s judicial, regulatory and bureaucratic frameworks are exceedingly friendly to entrepreneurs. For example, the World Bank ranks Denmark as the fourth best country when it comes to obtaining construction permits, the best country for cross-border trade and the sixth best country for resolution of insolvencies.
3. New Zealand
Economic Freedom Index Ranking: 4
Ease of Doing Business Ranking: 1
Corporate Tax Rate Ranking: 18
Average Ranking: 7.6
New Zealand has 13 preferential trade agreements, making the country one of the most open to business in the world. It ranks on the first position on the ease of doing business index of the World Bank.
2. Hong Kong
Ease of Doing Business Ranking: 3
Corporate Tax Rate Ranking: 7
Average Ranking: 5
Hong Kong is one of the best places to run a business in Asia. It is considered a financial hub and is a strategic gateway to the growing Chinese market. When it comes to corporate profits, Hong Kong has adopted a two-tier tax system.
The first $0.25 million in profits is taxed at 8.25%, while the outstanding profit is taxed at 16.5%, making Hong Kong highly attractive to small businesses. Further, being a global financial hub, access to capital in Hong Kong is considerably easy.
1. Singapore
Economic Freedom Index Ranking: 1
Ease of Doing Business Ranking: 2
Corporate Tax Rate Ranking: 8
Average Ranking: 3.6
Singapore is the best country to start a business according to our review of the different indexes. It is also the fifth best country in infrastructure. It has a low corporate tax rate of 17%.
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