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7 Best Countries to Start a Business As a Foreigner [2024]

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1.

Hong Kong

2.

Singapore

3.

New Zealand

4.

The United Arab Emirates (UAE)

5.

Switzerland

6.

Canada

7.

The United States of America

Starting a business in another country can be an exciting opportunity to enter new markets, attract more customers, and create opportunities for relocation.

Whether you're looking to move abroad or expand your business horizons, choosing the right country is key. But which country is best for starting a business as a foreigner? 

In this article, we'll explore the 7 best countries for starting a business as a foreigner in 2024, taking into account the local business environment, ease of setting up a company, foreign ownership regulations, and other important factors.

If you’re ready, let’s take a look! 

What to Consider When Choosing a Country to Start a Business  

Before getting into the details, let’s explore what you should consider when selecting a country to start a business. These include essential considerations and aspects you can prioritize based on your goals and preferences.

Legal and Regulatory Requirements 

  • Restrictions on foreign ownership: Some countries impose limits on how much of a business a foreign investor can own. They might require you to have a local partner who holds a majority share or cap the percentage of ownership you can have. These rules aim to ensure some control remains with domestic entities. In some countries, you can use a nominee partner to meet local ownership requirements. A nominee is someone who holds shares on behalf of the actual investor but has no real control of the business. However, the legality and acceptance of nominees vary by jurisdiction, and in some places, it may be illegal. It's essential to consult local laws to ensure compliance.
  • Tax regulation: Look into countries with low corporate tax rates, capital gains tax, dividends tax, VAT/GST, and other relevant taxes. Additionally, explore if the country has Double Taxation Agreements (DTAs). The DTAs ensure you are not taxed twice on the same income in both countries. If you plan to relocate, also evaluate personal tax obligations.
  • Visa requirements: Managing business activities in a country often requires specific visas, such as investor, business, or entrepreneur visas. Countries that encourage foreign investment may offer streamlined processes and special visa types to facilitate entry.
  • Labour Law: If you plan to hire staff, familiarize yourself with local labor laws. This includes minimum wages, working hours, and employee rights. It’s crucial for not only budgeting but also ensuring compliance.
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Tip:  Many countries offer support programs for foreign businesses, such as tax exemptions, which are often based on criteria like investment levels, job creation, or industry focus.

Business Environment

The business environment includes all the external factors that impact how a company runs and grows. To get a clear picture, look at economic conditions such as GDP, inflation rates, growth prospects, and overall stability. You can also look into the World Bank’s Ease of Doing Business rankings for insights on how easy is it to start a business in a particular country, along with the Global Entrepreneurship Index (GEI) to assess the health of entrepreneurship ecosystems.

Beyond these economic numbers and indicators, consider the availability of skilled labor, the quality of infrastructure such as transportation and internet, the types of government support for new businesses, the local business culture, and political stability.

Additionally, evaluate market competitiveness by analyzing the number and strength of competitors, market saturation, and innovation pace. A highly competitive market can drive innovation and improvement but also increase pressure on pricing and margins. Understanding this landscape aids in positioning, identifying opportunities, and differentiating offerings.

Start-Up and Maintenance Costs

Factor in registration fees, initial setup costs, and ongoing maintenance expenses. Some places may be affordable to start but costly to maintain. Understanding both initial costs and long-term financial planning is key to ensuring your business stays viable.

Lifestyle 

If relocating is part of your plan, consider the quality of life in the country. Look at the cost of living, transportation, climate, healthcare, education, and cultural fit. The right environment can make a big difference in your personal and professional life. 

A good tip is to connect with local expat communities or business networks to get a feel for what daily life is like. You can join websites like Expat.com, local LinkedIn groups, or Facebook groups dedicated to expatriates to find those insights.

Top 7 Countries for Foreign Entrepreneurs to Start a Business in 2024

Now that we've discussed key considerations, let's explore the list. 

The best country to start in will depend on your goals and target market. This article introduces countries that are generally favorable for business, whether due to their strategic location, favorable taxes, ease of entry, strong incentives for foreign investment, or other factors.

Here are the top 7 countries for foreign entrepreneurs to start a business, each offering unique advantages for global business success:

  1. Hong Kong
  2. Singapore
  3. New Zealand
  4. The United Arab Emirates (UAE)
  5. Switzerland
  6. Canada
  7. USA

1

Hong Kong

Hong Kong for business

Hong Kong, a Special Administrative Region (SAR) of China, is a global hub for trade and commerce. Despite its small size, it ranks as the 10th largest trading entity in merchandise trade and 21st in commercial services worldwide

Hong Kong has established eight FTAs with 20 economies, including Mainland China, New Zealand, EFTA Member States, Chile, Macao SAR, ASEAN, Georgia, and Australia. Germany is Hong Kong's largest trading partner within the EU. It also holds a unique agreement with Mainland China called CEPA.

The jurisdiction offers a business-friendly environment characterized by low taxes and free trade policies. Coupled with its advanced infrastructure, highly skilled workforce, and strategic location near Mainland China, Hong Kong serves as an ideal gateway for businesses aiming to expand across Asia.

Key Information About Starting a Business in Hong Kong

Economy 

A highly developed free-market economy, with a 3.3% year-on-year GDP growth in Q2 2024, fueled by financial services, trading and logistics, tourism, and retail sectors.

Foreign ownership

Hong Kong allows 100% foreign ownership of companies. No restrictions on foreign investment.

Tax benefits

Key requirements for foreigners to consider when setting up a company

A registered address in Hong Kong, local company secretary, at least one director, and one shareholder (of any nationality)

Cost to start a new company

Starting a company in Hong Kong costs approximately HKD 9,053 (about USD 1,162).

Government fees for establishing a private limited company are approximately HKD 3,500 - 3,700 (USD 450 - USD 475). Additional expenses include fees for a registered address and a company secretary.

Using a company formation service typically costs between HKD 6,000 and HKD 12,000 (USD 770 to USD 1,540).

Time to start a new company

Generally, less than a week 

Setting up a company remotely

Visa and residency requirements

The most common Hong Kong work visa for business owners is called the Hong Kong Investment Visa

This visa allows individuals with permanent residence overseas to obtain landing, entry, and residency rights by becoming employees of their own Hong Kong-registered company.

Language and culture

Cantonese and English are the official languages. English is widely spoken in business circles.

Hong Kong is a multicultural society with a blend of Chinese and Western influences.

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Tip: Considering starting a business in Hong Kong? Check out our guide on setting up a company in Hong Kong.

Back to business promotion for company creation services in Singapore

2

Singapore

Singapore for business

The Republic of Singapore is a vibrant island nation located in maritime Southeast Asia. It is the busiest port in Southeast Asia, highlighting its vital role in international trade and its impressive economic growth.

The country is a member of several influential international organizations, including the Asia-Pacific Economic Cooperation (APEC), the Association of Southeast Asian Nations (ASEAN), and the Trans-Pacific Partnership (TPP).

Starting a business in Singapore is highly attractive due to its strategic position that provides easy access to Southeast Asia. The country’s low tax rates, combined with various grants for both domestic and foreign SMEs, create a favorable financial environment. Additionally, Singapore’s reputation as a technology hub and its strong intellectual property protections offer a secure and innovative setting for new enterprises.

Key Information About Starting a Business in Singapore

Economy

Singapore has a strong and open economy, with a GDP of about 501.43 billion, representing 0.48% of the global economy.  The economy is driven by the wholesale trade, finance and insurance, and information and communications sectors.

Singapore's major trading partners include China, the United States, Indonesia, Malaysia, and Japan.

Foreign ownership

A foreigner can own 100% of a business in Singapore, just like a local Singaporean.

Tax benefits

A low flat corporate tax rate (17%), tax rebate for eligible companies, 75% exemption on the first SGD 100,000 for eligible startups, and DTAs with about 100 jurisdictions.

Key requirements for foreigners to consider when setting up a company

One local or resident director, a Singapore company secretary, a registered address in Singapore, and a registered filing agent if you do not have a singpassID. You may be able to use a nominee director in Singapore.

Cost to start a new company

Setting up a Singapore company costs around SGD 2,350 - SGD 3,500 (around USD 1,800 - USD 2,680)

Time to start a new company

2 - 3 days

Setting up a company remotely

Visa and residency requirements

The most common visa for business owners in Singapore is the EntrePass, designed for entrepreneurs, innovators, and investors. 

Language and culture

Singapore has four official languages: English, Malay, Mandarin, and Tamil.

The culture is a blend of Asian and European, primarily influenced by Malay, South Asian, East Asian, and Eurasian traditions.

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Back to business promotion for company creation services in Singapore

3

New Zealand

New Zealand for business

New Zealand, located in the South Pacific, is well-known for its glaciers and hot springs. Beyond its natural beauty, the country plays a significant role in Pacific affairs, with special ties to Niue, the Cook Islands, and Tokelau.

The country has several free trade agreements, including those with China, European countries, 11 Asia-Pacific nations, and others.

While it doesn’t offer the same tax benefits as Hong Kong or Singapore, New Zealand is known for its business-friendly environment, even earning recognition from Guinness World Records as the easiest country to do business in. It also offers various visa options that can lead to permanent residency.

Key Information About Starting a Business in New Zealand

Economy

New Zealand's economy centers on agriculture as the largest industry, along with services like tourism and trade. GDP is projected to reach USD 266.77 million in 2025.

Foreign ownership

100% foreign ownership of companies is possible in New Zealand. However, certain investments in sensitive assets are reviewed by the Overseas Investment Office.

Tax benefits

A flat tax rate for businesses (28%), some tax incentives such as tax credits for eligible R&D costs, and a network of 40 DTAs.

Key requirements for foreigners to consider when setting up a company

At least one director must be a resident of New Zealand or a resident of Australia with an Australian-incorporated company. 

If you’ve been in New Zealand for over 183 days in the past year, you might meet the residency requirement.

You can also register an overseas company to do business in New Zealand

Cost to start a new company

Registering costs around AUD 100, but including compliance and paperwork, a reasonable budget to set up a small business in New Zealand would be around AUD 1,000.

Time to start a new company

As fast as 1-2 days

Setting up a company remotely

Visa and residency requirements

The common visas for work and relocation to New Zealand include the Entrepreneur Work Visa (NZD 100,000 investment, valid up to 3 years), the Entrepreneur Resident Visa (For those self-employed in New Zealand for 6 months to 2 years, valid indefinitely with a path to permanent residency), and the Active Investor Plus Visa (NZD 15 million investment over 4 years, valid indefinitely with a path to permanent residency).

Language and culture

English is the primary and official language of New Zealand.

New Zealand's cultural influences are mainly European and Māori. 

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Tip: Non-residents cannot buy property in New Zealand. With a residence class visa, you may require Overseas Investment Office consent, depending on conditions.

4

The United Arab Emirates (UAE)

UAE for business

The United Arab Emirates (UAE), also known as the Emirates, is a rapidly developing nation in West Asia situated in the Middle East. It borders Oman to the east and Saudi Arabia to the southwest, and it has maritime boundaries in the Persian Gulf, along with Qatar and Iran.

Historically, the UAE's economy has been centered around its rich oil reserves and oil exports. However, the country has been diversifying its economy and investing in infrastructure to prepare for a post-oil future. It has several free trade agreements, including those with Arab countries, the European Free Trade Association (EFTA), and Singapore.

With access to the Middle East, North Africa, and South Asia, as well as supportive rules that promote investment—such as 100% foreign ownership in free zones and tax breaks—the UAE is an excellent place to start and grow a business.

Key Information About Starting a Business in the UAE

Economy

One of the largest economies in the Middle East. The UAE ranks 24th worldwide on the Economic Freedom Index and is classified as a high-income developing market.

The economy is driven by trade, tourism, logistics, property, finance, and oil and gas. 

GDP growth in the UAE is expected to reach 3.9% in 2024 and could accelerate to 6.2% in 2025.

Foreign ownership

Companies in the UAE can be 100% foreign-owned.

Tax benefits

Key requirements for foreigners to consider when setting up a company

The legal structures vary between mainland and free zone areas, with each free zone having its own set of requirements. 

Nonetheless, all businesses must have a physical address in the UAE to operate.

Cost to start a new company

About AED 10,000 - 30,000 (around USD 2,800 - 8,200). This depends on several factors, including the specific zone you are in.

Time to start a new company

As fast as 4 days 

Setting up a company remotely

Depends on locations 

Visa and residency requirements

The common Dubai visas for business are the Green Visa, a 5-year self-sponsorship residence visa for workers, and the Golden Visa, which is a 10-year residency for investors, entrepreneurs, and talented professionals with significant capital investment.

Language and culture

The official language is Arabic, but English is widely spoken, and a variety of other languages are used due to the country's diverse population.

The culture combines Arab and Islamic values shaped by traditional practices. It blends rich heritage with modern advancements.

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Tip: Compare Dubai and Singapore for business opportunities and explore the steps to form a company in the UAE. Read our report for a detailed comparison of Hong Kong, Singapore, and Dubai for foreign businesses.

5

Switzerland

Switzerland for business

Switzerland lies in west-central Europe, with Italy to its south, France to its west, Germany to its north, and Austria and Liechtenstein to its east. The country is famous for its stunning mountainous landscapes, cheeses, chocolates, and winter sports.

Switzerland has a robust network of 33 Free Trade Agreements (FTAs) with 43 partners, largely facilitated through the European Free Trade Association (EFTA).

Starting a business in Switzerland offers several compelling advantages. The country is known for its liberal and highly competitive economy and stable and transparent political system, which foster a reliable and predictable business environment. Additionally, Switzerland provides easy access to the EU single market.

Key Information About Starting a Business in Switzerland

Economy

Switzerland ranks among the highest globally in per capita GDP, valued at USD 884.94 billion USD in 2023. In 2024. It also holds the position of the second freest economy worldwide. The country's economy is predominantly driven by the services sector, with the EU being its main trading partner.

Foreign ownership

Switzerland currently has no general foreign investment controls; restrictions apply only to specific industries and sectors.

Tax benefits

Average company profit tax rate at 14.7% (range: 11.5%–21.04%), tax incentives for new companies and expansion, over 100 DTAs.

Key requirements for foreigners to consider when setting up a company

A legal corporate entity requires a registered physical address in Switzerland.

EU/EFTA citizens can establish a company in Switzerland under conditions similar to those for Swiss citizens. Non EU/EFTA citizens face stricter requirements.

Cost to start a new company

Around CHF 700 - CHF 2,000 (about USD 824 - USD 2353). 

Time to start a new company

10 days to 3 weeks or longer. It can take up to months, depending on the country of origin.

Setting up a company remotely

Depending on your situation, you may still need a physical visit to the local notary. 

Visa and residency requirements

A B permit for residence or a C permit for settlement is required, but the period and eligibility will depend on your nationality. Additionally, a Golden Visa is available for eligible investors.

Language and culture

Switzerland's four national languages are German, French, Italian, and Romansh. However, you can manage with English, especially in metropolitan areas like Zurich and Geneva.

The culture is characterized by dependability and neutrality

6

Canada

Canada for business

Canada, located in North America, is the world’s second-largest country by total area, extending from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean. It boasts the longest coastline globally and is known for its progressive and open policies.

The country benefits from various trade agreements, such as the Free Trade Agreements (FTAs) and Foreign Investment Promotion and Protection Agreements (FIPAs). Canada also supports World Trade Organization (WTO) agreements covering trade laws related to intellectual property, tariffs, and technologies.

Starting a business in Canada is attractive due to its stable economy, lower corporate taxes, and strong ties with the US. The country’s strategic location, surrounded by three oceans, over 550 ports, and 18 major airports, enhances its business ecosystem. For those looking to relocate, Canada is one of the best places to live, offering an excellent quality of life and free healthcare.

Key Information About Starting a Business in Canada

Economy

GDP growth in the first quarter of 2024 is on track to reach approximately 3.5%. Canada is a wealthy nation with a strong economy, largely driven by mining resources

Foreign ownership

Regulations typically mandate that a Canadian citizen or landed permanent resident possess partial ownership of the company. British Columbia may be the most flexible province in Canada in terms of the extent of foreign ownership.

Tax benefits

Key requirements for foreigners to consider when setting up a company

This varies by province. In some provinces, you need a company director who is a Canadian citizen or permanent resident, along with a Canadian address. Sometimes, you’ll need an agent residing in the province where you plan to incorporate.

Cost to start a new company

aStarting a business in Canada can cost anywhere from under CAD 1,000 (around USD 741) to over CAD 10,000 (around USD 7,408)

The exact amount depends on your business structure, business nature, and the province in which you established your business.

Time to start a new company

1 - 5 business days 

Setting up a company remotely

Visa and residency requirements

The typical options are the Entrepreneur Work Permit (C11) for starting a business in Canada and the Start-up Visa Program (excluding Quebec) for eligible entrepreneurs who create jobs for Canadians and can compete globally, among other criteria.

Language and culture

Canada's official languages are English and French. The culture is a vibrant blend of American, European, and indigenous traditions.

7

The United States of America

USA for business

The United States is a country in North America, stretching from Alaska in the northwest to Hawaii in the Pacific Ocean. It includes 50 states, a federal district (Washington, D.C.), and several territories.

The US has 14 free trade agreements with 20 countries. More importantly, it is a major global superpower with significant influence in international economics, politics, and military affairs.

Starting a business in the US offers key benefits, like a strong economy, solid infrastructure, and access to capital. With a large and diverse consumer base, the country offers plenty of opportunities for innovation and growth. It is also regarded as the world’s most startup-friendly countries, highlighted by Silicon Valley, a major tech hub known for its concentration of high-tech companies and venture capital.

However, tax advantages might not be a significant benefit compared to some other options on this list. Generally, it's advisable to consider incorporating a US entity if you plan to largely target the US market, expect significant exports to the US, or are a technology company seeking resources.

Key Information About Starting a Business in the US

Economy

The largest economy in the world, with GDP growing by 3 percent in the second quarter of 2024.

It operates as a mixed economy, driven by international trade, a free market for consumer goods and business services. Major industries include healthcare, technology, construction, and retail.

Foreign ownership

No specific restriction on ownership, but many states are imposing limits on foreign individuals or entities acquiring real estate and agricultural land.

Tax benefits

The corporate tax rate is 21%, with options for tax consolidation, as well as credits and deductions available for businesses

Taxes can differ between states.

Key requirements for foreigners to consider when setting up a company

Non-residents can establish only two types of entities in the US: a Limited Liability Company (LLC) or a Corporation (C-Corp). You'll need a registered agent to assist with the incorporation process.

Laws and business requirements differ significantly between states.

Cost to start a new company

LLC costs USD 100 to USD 800, corporation costs USD 50 to USD 300. Using a registration service costs USD 500 to USD 1,500. 

Total costs, including ongoing expenses, can range from USD 1,500 to USD 5,000.

Time to start a new company

Depending on the state. It can take 5 days to 1-4 weeks on average or up to months.

Setting up a company remotely

Visa and residency requirements

Common visas for business owners include the E-2 Visa, which is ideal for entrepreneurs starting a new business in the U.S. and is the closest to a "start-up visa.

Other options to consider are the L-1A Visa, designed for established businesses expanding into the U.S., and the EB-5 Investor Visa for investors.

Language and culture

English is the main language spoken, followed by Spanish as the second most common. The country is culturally diverse, blending various cultures and beliefs. Americans place a high value on freedom, order, and individuality.

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Tip: Popular U.S. states are Delaware for business-friendly laws, Nevada and Wyoming for favorable taxes and privacy, and California and New York for their markets and networks, though taxes are less advantageous.

In which country are you most interested in starting a business?

Hong Kong

Singapore

New Zealand

The United Arab Emirates (UAE)

Switzerland

Canada

The United States of America

Other Notable Countries for Business

Apart from the countries previously mentioned, several other notable locations are frequently discussed. For example, 

  • Germany is often highlighted as the third largest economy in the world, but it is also renowned for having extensively complex regulations.
  • The Czech Republic is recognized among startups for its lower overhead costs. However, it may not match the prominence of major startup hubs like the US, Berlin, or Amsterdam, and it may have a language barrier. 
  • Denmark ranks 4th in ease of doing business according to the World Bank and is renowned for its high quality of life and stable economy. However, it also has the highest statutory income tax rates among European countries.
  • South Korea's rapidly growing economy and focus on innovation offer great potential, but cultural differences and a big language barrier likely pose challenges for foreign entrepreneurs.
  • The United Kingdom offers a strong economy and government incentives. However, challenges include a complex tax system, a potential shortage of workers, intense competition, and regulatory changes.
  • The Netherlands provides benefits like a stable economy, a multilingual workforce, and supportive regulations for innovation and foreign investment. However, entrepreneurs may face challenges with complex legal and financial regulations and navigating employment laws.
  • Ireland has one of Europe's lowest corporate income tax rates, a skilled workforce, high economic growth, and widespread English usage. However, its domestic market is smaller than that of larger countries.
  • Sweden has a strong and stable economy, but business owners may face challenges with high individual tax rates and complex labor laws.

Final Note 

When considering where to establish a business, each country offers distinct advantages. 

Hong Kong and Singapore are known for their favorable tax regimes and strategic locations in Asia. New Zealand and Switzerland provide excellent access to European markets, with New Zealand notable for its ease of doing business and high quality of life, while Switzerland is recognized for its free-market economy. 

The UAE stands out for its attractive tax incentives and access to the Middle Eastern market. In North America, both Canada and the USA offer significant economic influence and a range of opportunities for growth and investment.

Regardless of the chosen country, a key to successfully doing business abroad is leveraging local expertise. Local experts can greatly simplify the business setup process and facilitate a smoother entry into the new market.

FAQs

What are the top countries for launching a business?

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The top countries for launching a business are Hong Kong, Singapore, New Zealand, the UAE, Switzerland, Canada, and the US.

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