The states that are considered most favourable for launching a startup are those whose business climate is balanced in terms of stability and costs. The article explains where it is easy to do business in 2022 according to a number of experts/analytical organisations.
Top countries for company registration
To decide in which country to incorporate a company and make a list of the best jurisdictions, we focused on the Doing Business ranking (taking into account the practice and experience of our team). The Doing Business ranking is a study by the World Bank Group that evaluates regulations in 190 countries that promote business activity and those that restrict it.
- Commercial atmosphere: typical expansion of petite enterprises, quantity of initiations, intricacy of the enrollment process, duration of the undertaking lifespan, assortment of sectors, chances to penetrate significant worldwide markets, entrepreneurial indicator, predicaments of implementing accords, etc.
- Entrance to assets: accessibility of funding, loaning, venture capital infusion, presence of adept professionals, etc.
- Corporate expenditures: workforce expenses, accessibility of workplace area, functional expenditures, business levies.
It is also worth researching the obligations you will face in your chosen business environment. For example, Europe has some of the strictest labour laws and employee benefits obligations in the world. So, before making a choice of where to incorporate a company in 2022, you should carefully consider the aforementioned and related factors. But it is still best to seek specialist advice.
Company registration in Asia
Many factors affect the success of a business, and its location may be the first important decision to be made. Below are the most promising jurisdictions in the Asian region.
Singapore Company registration in Singapore offers such advantages as access to major Asian markets, business orientation, flexible immigration policy, short establishment time, reliable banking system. In addition, tax benefits can be enjoyed if certain conditions are met. The basic income tax rate is 17%. In order not to lose its leadership in the changing economic environment, the local government has invested heavily in modernising the infrastructure network. In fact, according to the World Bank, the Republic ranks 1st in the world in logistics development.
Singapore has extensive capabilities in capital and asset management, Fintech. Other industries that contribute significantly to the economy include medical technology, aerospace, clean energy, healthcare. Moreover, setting up an IT company in Singapore can be a lucrative decision as, as an established IT hub, the jurisdiction has already attracted global players such as Twitter and Netflix, among others.
Smart Nation was initiated in this region, an initiative whose primary goal is to encourage the adoption of pioneering technologies in the non-public domain. Singapore has advanced artificial intelligence (AI) and information expertise to invest in fresh prospects and evolve into a hub for intellectual innovation. The officials will depend on collaborations with alternative governmental branches, exploration establishments, AI launch-ups, and enterprises formulating AI products.
Hong Kong The special administrative region of China is considered a recognised financial centre of Asia. If you are wondering where it is easy to start a business in 2022, company registration in Hong Kong is one of the promising options. It has been recognised as one of the most competitive economies in the world. The International Institute of Management Development (IMD) World Competitive Yearbook 2021 ranked Hong Kong 7th out of 64 countries.
With a rich financial and marketing base, advanced infrastructure and access to mainland China's manufacturing centres, there are numerous business opportunities in Xiangyang. The Hong Kong SAR government has specialised policies and legal protection for intellectual property rights. Laws have been drafted to the highest international standards.
The tactical positioning implies that international entities establishing a regional main office in Hong Kong will have the opportunity to harness the capabilities of the diverse Asian economies. Hong Kong additionally functions as a business and infrastructural gateway for foreign firms aiming to capitalize on the potential of mainland China.
Malaysia stands forth as a burgeoning economic hub in Asia. It is gaining escalating favor among investors residing outside its borders. Kuala Lumpur frequently emerges as the preferred destination for investments within the Malaysian territory. The customary tax rate on earnings hovers at 24% in this locale. Small and Medium Enterprises (designated as business entities officially registered with an invested capital of RM2.5 million, distinct from business entities forming part of a larger capital threshold group and exhibiting gross income not exceeding RM50 million for the fiscal year) encounter a tax rate of 17% on the initial RM600,000, with the remainder subject to a 24% tax.
Entrepreneurs possessing a tech-savvy and inventive foundation can establish a corporation in Malaysia or reap advantages from broadening operations in the nation. Cutting-edge enterprises and diverse pioneering industries enjoy governmental support through perks such as investment incentives and tax advantages. Thanks to comprehensively open and clear-cut investment regulations, coupled with a fiercely competitive ASEAN affiliation and governmental encouragements, Malaysia emerges as an appealing locale for overseas legal entities and business visionaries to engage in commercial activities.
You could explore a choice like integrating an enterprise in Labuan. With a diminished tax framework, this federal expanse is deemed an alluring hub for numerous global businesses. Labuan is situated on the principal maritime and aerial pathways of the Asian sector. The Malaysian officials have allocated substantial resources to enhance Labuan's groundwork, which has been completely revamped and furnishes a cutting-edge communication network.
Key advantages:
- Minimal levy system for participants in global affairs.
- Complete external possession is permitted.
- Zero retention tax on dividends, interest, royalties.
- Labuan IBFC's lawful structure enables the establishment of an extensive array of business formations to cater to diverse regional and global requirements.
Business in Europe
If you are planning to develop/expand in the European market, below is a list of the best countries for expansion. Many factors influence the right choice, such as:
- Limited hindrances to initiation.
- Simplicity of conducting commerce.
- Competent workforce.
- Consistency of the economic milieu.
- Propitious tax and toil statutes.
- Unwavering governance.
- Cutting-edge regime in the realm of novelty.
Below is a list of the "Best Countries in Europe for Business".
United Kingdom As a leading trading power and financial centre, Britain is considered to be one of the largest economies in Europe. High GDP level, availability of DTA agreements, absence of currency control are the main advantages that make company registration in England interesting for foreign businessmen. Other pros of working in the United Kingdom include flexible labour laws, low labour costs, developed communication.
In addition to Britain's relatively low CIT rate of 20 per cent, firms can benefit from a 100 per cent deduction for research and development costs. Opening a company in the UK can also be advantageous as the country is globally recognised in the banking industry. Firms based here can receive an exemption from income tax on foreign dividends.
Ireland has established itself as an investment destination for many multinationals including Intel, Twitter, Pfizer, Citi, Huawei, Takeda, Fujitsu, Novartis and Trend Micro. The government aims to emerge as a global leader in the Internet of Things, big data, ICT, energy efficiency, healthcare innovation and cloud computing. The jurisdiction is included in global reviews as one of the best places to build a startup and the top reasons to incorporate a company in Ireland:
- Belonging to the European Union and the Eurozone.
- Being part of the EU, Ireland provides legal entities unhindered entry to more than 500 million consumers in Europe.
- Accessibility of skilled personnel.
- Modest CIT rate of 12.5 percent on income derived from commercial activities.
- Credit for research and development.
- Ireland boasts a storied past of accomplishment in science and technology and persists in allocating resources to enhance research and technological competencies.
NetherlandsReasons why incorporating a company in the Netherlands can benefit international investors include a strategic location that allows access to virtually every market in the Americas, Asia Pacific and Europe, a strong ever-growing economy, a highly skilled labour pool and strong government support for foreign investment. The country is a leader in digital technology and therefore favoured by those looking to expand into Europe.
The open corporate business culture, transparent legislative environment, competitive tax structure, international orientation and developed infrastructure network attract major corporations. For example, Shell, Heineken and IKEA are already headquartered here. Key areas include ICT, high technology, life sciences, aerospace. The new rules also allow foreign entrepreneurs to apply for a residence permit in the Netherlands.
Luxembourg stands prominently concerning economic vitality. This territory provides a contemporary logistics framework for transportation and communications, domains of the economy actively championed by governmental endeavors. Positioned centrally in Western Europe, featuring a proficient global workforce, a steady political milieu, and convenient interaction with public authorities, Luxembourg emerges as a favored destination for multinational corporations.
Financial and insurance activities attract more than eighty per cent of all investments. Company registration in Luxembourg is also attractive in technology-oriented sectors. Other key sectors to invest in include manufacturing, tourism and e-commerce.
SwitzerlandRegistering a company in Switzerland offers a number of advantages. The Swiss Confederation is among the top 10 richest countries in the world and has one of the most liberal and competitive economies. Thanks to its moderate taxation and stable political system, the country is globally attractive. Its geographical location in the centre of Europe is an additional advantage. Switzerland is considered one of the leading jurisdictions in research and development.
The financial sector benefits from favourable legislation, moderate taxation, stability of the Swiss franc and effective and consistent financial market supervision. Companies can benefit from high-quality services in terms of financing, bank transfers and asset management. Other sectors attracting significant investment from abroad are information technology and pharmaceuticals, bio- and nanotechnology, and the crypto-industry. The small city of Zug has been nicknamed "Cryptodolina" due to the large number of crypto projects. In general, registration of a cryptocompany in Switzerland is currently quite a popular request.
MaltaAnother option for expanding or entering the European market is to register a company in Malta. The small island state is characterised by rather favourable conditions for entrepreneurship. The country is a member of the EU, but Maltese legislation provides more loyal business regulation. Malta has several advantages such as low cost of establishment, favourable tax rates, tax incentives and human resource efficiency.
These benefits stretch to diverse domains encompassing monetary amenities, information and communication technology, medications, and biotech. As a constituent of the EU, the governing bodies exhibit a supportive stance towards the advancement of commerce, expansion, and enhancement of living conditions. The steadiness of Malta is rooted in its outstanding telecommunication infrastructure, strategic positioning, economic and political steadfastness, and a proficient, multilingual workforce.
It is possible to incorporate a Maltese company remotely. The basic rate of CIT is 35%, but a number of tax incentives are available to some firms. The business climate and easy access to Europe are a bonus, making business opportunities in Malta exceptional.
PortugalRegistering a company in Portugal is a process that allows you to start a business in one of the developed EU countries. EU membership is an important factor to consider. It means a common currency and free movement and trade in all member states. Portugal is considered one of the leading members of the European Union in terms of services, biotechnology and information technology.
The government considers foreign investment as one of the most important factors in ensuring economic growth. For this reason, foreign investment in Portugal is allowed in all private sector activities. The absence of special difficulties in company registration attracts international investors. They can easily set up limited liability companies, joint stock companies, private and public partnerships.
Georgia According to the 2021 Business Report, Georgia is among the top ten countries in terms of ease of doing business. Over the past three years, it has continued to improve its position in the ranking by making significant changes to the local regulatory framework. The government is taking active steps to attract foreign investment, so the state offers favourable conditions for registering a company in Georgia.
Georgia has created special conditions for online companies (IT sphere). For example, corporate tax is 0%. Taxes on dividends, interest and royalties - 5%. Registration (with the right documents) can be done remotely. It is possible to open an account for an IT business in local banks quite quickly.
EstoniaThe peculiarity of Estonia is that the country has become a digital business centre. The infrastructure is designed to facilitate online business and manage online services: remote company registration in Estonia, e-government, convenience in filing reports. In addition, there is 0% corporate tax on reinvested profits. However, it is important to note that in order to start a business, it is necessary to hire a local director to open an account in a local bank.
Company registration in the USA
The United States stands amid the globe's foremost nations concerning comprehensive competitiveness. Buttressed by a regulatory structure, the American business ethos fosters uninhibited entrepreneurship and rivalry. Within a secure democracy featuring an open legal system, every corporation, irrespective of its national inception, vies on a level playing field. The economic prowess is amongst the most robust, explaining why the nation sits amidst the planet's upper triumvirate. The states present the most extensive consumer market globally.
The financial system is distinguished by an exceedingly refined and technologically progressive service domain. Service-focused enterprises prevail in sectors like technology, monetary amenities, wellness, and trade. The United States furnishes backing for fledgling businesses via enterprising environments.
The States are home to world-renowned technology corporations such as Amazon, Google, Facebook and Twitter. The country ranks third in insolvency resolution and lower regulatory barriers. Typically, entrepreneurs decide to start a company in Delaware because the state's legal framework provides a high level of asset protection and lower tax rates. Additionally, Wyoming and Florida company incorporation are popular options. Like Delaware, these states are characterised by lower tax burdens than other states (such as New York, California or New Jersey).
An additional encouraging alternative for your business undertakings might involve establishing a corporation in Ohio, where the government extends fiscal aid and business encouragements to facilitate the growth and enlargement of small and medium enterprises. Ohio secured the 3rd position in business atmosphere and the 9th spot in entry to logistics. Several pivotal sectors encompass advanced energy and ecological technology, farming, vehicular industry and components, allocation and logistics, aeronautics and aviation, and life sciences and bio-products. You have the option to pick from a compilation of lawful structures, though the prevalent one involves enlisting a Limited Liability Company (LLC) in the United States.
Registering a company in Canada
The nation's regulations and governmental atmosphere collaborate harmoniously to establish a setting in which global commerce can flourish. A robust, tenacious financial system, a steady governmental structure, and the capability to cultivate and draw in proficient workforce render Canada one of the premier choices for investment. Canada also stands prominently in terms of living standards, and cutting-edge technology is unveiling fresh possibilities and propelling enhancements in infrastructure.
You have the option to allocate your resources in areas like petroleum and gas assistance, building, promotion and communication, and financial technology. As per the World Bank, Canada extends advantageous market entry to international investors via NAFTA and collaborations with the EU, and immigration regulations have recently shifted to become more amicable to outsiders.
Company registration in Australia
The nation's socio-political steadiness, lucid regulatory framework, and sturdy administrative setups undergird its financial tenacity. Australia's commendable stewardship, positioned among the globe's leading five nations by the Index of Economic Freedom, furnishes multinational enterprises with a dependable and protected commercial milieu. The region is esteemed as the domicile for top-notch research establishments.
Austrade is the government's official trade and investment organisation and actively works to encourage foreign investment through a range of incentives. Australia is globally competitive in financial and insurance services, technology and value-added manufactured goods. Mining and agriculture are important export sectors. A strong record of innovation, commercial focus and approach to global co-operation make the Commonwealth of Australia a suitable location for joint ventures.
Every commercial enterprise is liable to a national levy percentage of 30, barring 'modest enterprises' that face a diminished percentage of 26 (with an additional slated drop to 25 in 2022). Be aware that it is feasible to submit nil documentation if there is an absence of operations within the nation.
Company registration in the UAE
The United Arab Emirates (UAE) boasts the most permissive trade system in the Gulf region. Presently, the Emirates harbor numerous fledgling enterprises and multimillion-dollar conglomerates. The authorities are eager to invigorate the economy via overseas investments. To attain this goal, they've revamped their legal structure. Presently, the administrative process is streamlined, and all legal protocols are notably swift. A robust manufacturing foundation has been instituted here, complemented by a resilient service industry. The establishment of liberated areas emerged as a pivotal facet of the strategy for broadening economic activities.
The regulators have endeavored to establish exceptional infrastructure and facilities in commercial hubs, workplaces, and storage areas, as well as in transportation, connectivity, and services. Intangible assets, such as patents and trademarks, receive legal safeguarding in the UAE, and substantial initiatives are underway to enforce these regulations. The Emirates provides diverse types of business possession and taxation classifications. Noteworthy among these are autonomous regions with complete tax relief. Opting for specific corporate frameworks allows for full possession rights on the mainland.
According to a World Bank report, the Arab Emirates is ahead of many European countries. This indicates favourable conditions for the development of entrepreneurship. And importantly, the UAE is strategically located between three continents, Europe, Asia and Africa. There is easy access to the Gulf countries and the entire Middle Eastern market. One attractive option is to incorporate a company in Dubai, as this emirate offers many incentives for multinational investors.
Conclusion
This article discusses a list of countries where it is easy to do business in 2022. The list is not exhaustive, so if you are interested in more information on this issue, make an appointment for a consultation with YB Case specialists.
