Over the last two years, relocation and setting up a business in various countries have become very topical among entrepreneurs. When looking for the best conditions, businessmen primarily pay attention to the level of convenience in registering and doing business, the cost of taxes, as well as the degree of legal protection in the area of private property and contracting. Let's take a look at the key criteria when choosing a country to locate a business, focusing on where it is easier to open a business and which countries are the top countries for business. Using the examples of Singapore, Estonia, Ireland, Georgia, Serbia and Turkey, we will identify which is considered the best country for business.
How to choose the right jurisdiction?
First of all, it is important to consider not only the possibility of remote incorporation, but also a number of other factors. For example, it is worth analyzing the corporate tax rates and special conditions applicable to profit distribution (a detailed comparative analysis is presented in our article). On top of that, you need to consider the general aspects of running a business such as:
- Prospects for specific investor activities
Analyzing trends and the competitive environment to make informed investment decisions.
- Company growth and scaling prospects
Research market opportunities and business expansion strategies.
- Restrictions for shareholders
Terms of ownership and trading of shares, possible restrictions on transfer or sale.
- Restrictions for non-residents who own an enterprise
Laws and regulations governing the participation of non-residents in the ownership of a company.
- Maximum cash annual turnover
Established regulations or limits on the company's revenues during the year.
- Restrictions and prohibitions of banks on activities of non-residents
Rules and policies of banks related to relations with non-residents.
- Restrictions for authorized capital
Minimum and maximum values of the authorized capital established by law.
- Signed agreement to avoid double taxation
Agreement on the prevention of double taxation between countries to protect the interests of investors.
- Company safety
Measures to ensure the physical, information and financial security of the business.
- Confidentiality of data on turnover of funds
Policies and technical measures to protect confidential financial transaction information.
Once you have studied all the points and conditions you can start choosing a country.
(Value Added Tax)
|up to 17%
|Corporate income tax - 0%. Corporate tax on distributed profits - 20%
|12.5% in respect of trading (active) income, 25% in respect of passive income
|20%, and 25% for the financial sector
|0 to 22% (maximum rate for income from S$320,000)
for the amount of income up to 32800 euros the tax rate is 20%; from the amount exceeding this amount - 41%.
|15 to 40% depending on the salary level
|Tax on dividends
Pros and cons of countries
This country serves as an example for all countries seeking to improve business conditions. Opening a new company here is possible in one working day, completely remotely. However, it is important to take into account that the preparation of the necessary package of documents must comply with all the established rules.
Advantages of Singapore:
In addition to being an international trade and financial center, Singapore offers many opportunities for tax optimization. The corporate tax rate is one of the lowest in the world at 17%, and new companies are fully exempt from this tax for three years or until turnover exceeds $75,000.
Disadvantages of Singapore:
Opening a corporate bank account with local banks for SMEs is somewhat challenging.
Estonia is popular among IT specialists from different countries due to its progressiveness, readiness to adapt to current global trends and, of course, due to the absence of income tax, which is 0%. In addition, it is easy to obtain licenses to work with virtual currency here, and the process of opening a company online is accelerated.
Advantages of Estonia:
No capital gains tax as it is treated as part of the company's income. The accounting filing process turns out to be very simple. An audit is only required for companies with net sales of more than 2 million euros, a balance sheet of more than 1 million euros or more than 30 employees.
Disadvantages of Estonia:
It is practically impossible to open a bank account for a company in an Estonian bank, but it is possible to open an account in EU banks.
Ireland is home to major IT corporations such as Google, Microsoft and even Apple. This indicates that it offers a convenient business environment and low tax rates. You can register your company without having to visit Ireland.
Advantages of Ireland:
Ireland has a favorable business image and an attractive business environment. The corporate tax rate is 6.25% for IT companies with annual revenues of less than 7.5 million euros derived from patented intellectual property. In this case, 50% of the profits are tax exempt, which reduces the effective rate to 6.25%. LLC-type companies meet a positive attitude from financial institutions in other countries.
Disadvantages of Ireland:
High costs associated with the registration and subsequent maintenance of the business. Opening a bank account is only possible if the director of the company is a resident of Ireland.
Over the last 5 years Georgia has become one of the most promising countries for business, holding leading positions in the world rankings in terms of ease of doing business. An additional advantage is the absence of Georgia's participation in the automatic exchange of tax information according to the CRS standard, which facilitates the process of opening an account in a local bank for non-residents who have confirmed the existence of the necessary activities.
A company can be registered in Georgia without personal presence by providing a power of attorney, and the process of accelerated registration takes no more than 10 working days. Profit tax for company owners is 15%, while individual entrepreneurs with small business status can benefit from simplified taxation levied at 1% of revenue limited to 120,000 euros per year.
In 2021, the requirements for Virtual Zone status were adjusted. Now, for tax benefits it is necessary to demonstrate the existence of substance (presence) in the country, including administrative costs such as office rent or the presence of Georgian citizens in the staff. The benefits apply only to companies actually conducting production in the country.
If you are looking to enter the international market, especially in Europe and the USA, Serbia provides ideal conditions. Low electricity prices are available in the country, and there are special economic zones that facilitate the development of production.
Advantages of Serbia:
Открытие компании с банковским счетом возможно без необходимости личного присутствия в стране. Сербия предлагает хорошо развитую систему банковских учреждений, включая как локальные, так и международные компании. Также существует множество программ, стимулирующих инвестиции и внесение в бюджет страны.
There is considerable bureaucracy and it can be difficult to understand all aspects without language skills. Extensive documentation is required for the registration process. The ability to register a business in a convenient jurisdiction without physical presence allows you to increase revenues, minimize tax liabilities and effectively invest in the development of your enterprise. Choosing the right jurisdiction becomes key in this process. If you have additional questions, feel free to ask and get a free consultation from our experts.
Starting a business in Turkey opens up a wide range of opportunities for foreign entrepreneurs, including access to the global market. Turkish authorities actively support initiatives to establish new foreign companies, providing comfortable conditions for foreigners wishing to invest in the country's economy.
Advantages of Turkey :
Turkey has special economic zones that provide tax incentives. However, access to them is limited to entrepreneurs from countries that are not on the sanctions lists.
Business in Turkey is supported by a well-developed system of legal protection, including such laws as the Civil Code, the Law on Intellectual Property, the Law on Competition, and the Law on Bankruptcy.
Disadvantages of Turkey:
When hiring foreign workers, the enterprise needs to ensure an equal number of Turkish citizens (5 Turkish citizens for each foreigner). A residence permit and a special work permit are required for foreign workers. Social contributions for employees are 20.5% and unemployment insurance premiums are 2%.
Turkey faces some corruption problems (ranked 109th out of 180 countries by Transparency International), which may have a negative impact on the business environment.
Choosing a country to start a business is a strategic decision that can determine the future success of your enterprise. Various factors such as tax policies, bureaucratic processes and the overall business environment become key criteria when deciding where to register.
When searching for the best country for business, many entrepreneurs evaluate various aspects such as the level of accessibility, tax incentives and remote registration options. Georgia stands out among the top countries for business, providing an ideal combination of these factors.
So, by choosing Georgia to register your business, you are investing in the successful future of your enterprise while enjoying the benefits of registering your business abroad.
If you need assistance in registering your business in Georgia, please leave an application on our website or follow this link to research an article on the subject.