Starting a Business
Depending on who you ask, the best country to start a business varies widely. We thought it wise to use the rankings of an independent body that operates globally–the World Bank Group.
The organization examined 190 countries using ten key indicators–including ease of starting a business, registering property, and getting credit–in a bid to find the best countries for starting a small business. The data is from 2020 since they haven’t released the 2021 report yet. Once you’ve sampled all the great offers these countries provide, you just might be tempted to seek small business grants to start your trade-in these business meccas.
Top countries to start a business
New Zealand retains its crown as the best country to conduct business for the fourth year, earning top-marks for ease of starting a business and getting credit or small business grants. It had the best response to the pandemic, recording a 1.4% growth at the end of 2020.
Advantages of starting a business in New Zealand
- Half a day to start a business, the fastest the world
- Stable business environment
- Ranks second for registering a property
- Sits third for protecting minority investors
- Sole entrepreneurs get moved to a higher tax bracket when business thrives ● High cost of living
The Asian economic tiger has cemented its place in contemporary folklore as a friendly business hub to investors. It has recently made it easier to acquire a construction permit, moving up to fifth place internationally.
- Enforcing contracts – second
- Protecting minority investors – third
- Ease of starting a business – fourth
- High overhead costs
- High workforce costs and shortages in some industries like retail, hospitality, and tourism
Although technically part of China, it’s a separate entity from the mainland and operates a free-market economy. That has allowed its leaders to formulate business-friendly initiatives, such as no need for a company seal and improved access to credit.
- Ranks first for acquiring construction permits
- Paying taxes – second
- Getting electricity – third
- Highly educated workforce
- High cost of living – most expensive in the world
- It depends heavily on international trade and finance
The Scandinavian country has always been a strong contender for the best countries to start a business. Its main industries include machinery, tourism, and food processing, backed by minimal capital requirements for domestic LLCs.
- Highest ranked for cross-border business
- Fourth place for issuing construction permits and ease of doing business ● Resolving insolvency – sixth
- High taxes and wages
- Strict business culture
Support available to start a business
These countries distinguish themselves for how they make the entire process of opening a business easy, quick, affordable, or a heady combination of all these.
Take New Zealand, for instance–you can open a business in a day as they have streamlined the entire process online. They include helpful resources, including spending habits, culture, accountant referrals, how to deal with the pandemic, and applicable rules and regulations.
New Zealand also ranks first for investors acquiring credit, and there are no capital gains, payroll, or social security taxes. Denmark prides itself on the most flexible HR rules, high tax efficiency and ranks first for trading across borders.
Singapore and Hong Kong average 1½ days between application and opening a business. In addition, you won’t have to deal with dividend or capital gains taxes in Singapore, which has free trade agreements with several countries, providing a broader market.
Hong Kong invested heavily in communication and transport networks. It’s top-ranked for new businesses registered per 1,000 people because there has been a marked increase in co-working spaces, accelerators, and incubators for startups.
Why you should open your own business
Firstly, it offers a chance to supplement your earnings when it starts doing well. It will initially allow you to pursue what you love, be your boss, and get some tax benefits to boot. Once the business stabilizes, you will get to work when you want and set deadlines, creating more time to spend with your loved ones. That also comes with the financial freedom and lifestyle you desire.
While a home is best, some countries excel at providing support for new businesses. If you need credit, small business grants, and quick places to start a business, you can’t go wrong settling in New Zealand, Hong Kong, or Singapore.
Denmark stands shoulders above the rest if you want a huge market that extends across borders, although Singapore comes close. New Zealand and Singapore have several enticing tax benefits–you won’t have to pay taxes such as payroll, income gains, or social security taxes.
If you operate in these countries, congratulations. For the rest of us, follow the link in the introduction section above to learn how small business grants can help start your dream business abroad.