7 Best Countries to Start a Business As a Foreigner [2025]

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 2025, 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!

Before exploring detailed insights on each country, start with the Quick Comparison Table below for a side-by-side overview of their key business advantages.

Hong Kong, a Special Administrative Region (SAR) of China, ranks 10th worldwide in merchandise trade and has Free Trade Agreements with key markets, including Mainland China, ASEAN, and Australia. [1] With a low-tax regime, fast company registration, and business incentives like SME grants and R&D tax breaks, it offers an efficient setup process for foreign entrepreneurs.

Its strategic location, skilled workforce, and advanced infrastructure make it a prime gateway for expansion into Asia. While traditional banking can be challenging, fintech solutions provide accessible alternatives for startups.

Key Information About Starting a Business in Hong Kong

Source: Census and Statistics Department - The Four Key Industries and Other Selected Industries [2]

Source: TMF - Global Business Complexity Index 2024 [3]

Source:

GovHK - Profits Tax [4]

Financial Services and the Treasury Bureau - Comprehensive Avoidance of Double Taxation Agreement [5]

GovHK - Support for Local & Foreign Enterprises [6]

Source: Invest HK - Setting up in Hong Kong [7]

Source: HK Immigration Department - Investment as Entrepreneurs [8]

Source: Inland Revenue Department - Tax Information [9]

Who is Hong Kong Best For?

Hong Kong is an ideal choice for:

✅ Companies looking to expand into Mainland China while keeping legal and financial independence.

✅ Ecommerce, trading, and finance businesses benefiting from Hong Kong’s tax-free international transactions and China trade agreements (CEPA).

✅ Startups & SMEs needing access to Hong Kong’s multi-currency banking system and Asian capital markets.

Our Verdict on Hong Kong

Hong Kong scores 10/10 for its pro-business environment, offering low taxes, a fast setup process, and unparalleled global market access. While living and office costs are high, its strong financial infrastructure and regulatory efficiency make it a premier destination for entrepreneurs.

Singapore is a global business hub ranked among the world’s top economies for trade and innovation. As Southeast Asia’s busiest port, it plays a crucial role in global logistics and commerce, reinforced by extensive Free Trade Agreements with key markets across ASEAN, China, and the US. [10] Starting a business in Singapore is highly attractive due to its competitive corporate tax rate, strong IP protections, and government-backed startup incentives—though high office rental costs remain a consideration for entrepreneurs. [11]

Key Information About Starting a Business in Singapore

Source: Singapore Department of Statistics - Singapore Economy [12]

Source: Inland Revenue Authority of Singapore - Taxes [13]

Source: Accounting and Corporate Regulatory Authority - Foreigners Registering a Business in Singapore [14]

Source: Ministry of Manpower - Employment Pass [15]

Who is Singapore Best For?

✅ Tech startups & digital businesses benefiting from innovation-friendly policies & funding support.

✅ Multinational companies seeking a regional HQ in Asia with strong financial, legal, and corporate infrastructure.

✅ Businesses expanding into ASEAN & global markets through Singapore’s extensive trade agreements & strategic location.

Our Verdict on Singapore

Singapore scores 9.5/10 for its business-friendly policies, strong financial ecosystem, and global connectivity. With low corporate taxes, extensive trade agreements, and government-backed startup incentives, it remains a top choice for foreign entrepreneurs. However, high business costs and strict banking requirements may be key considerations for new startups.

New Zealand offers a business-friendly environment with strong government support for startups and SMEs. Its economy thrives on key industries like agriculture, food & beverage, and tech startups, reinforced by strong trade ties with China, Australia, ASEAN, and Europe. [16] With innovation grants, a growing startup ecosystem, and visa pathways leading to long-term residency, New Zealand presents a compelling option for entrepreneurs seeking stability, investment opportunities, and access to global markets.

Key Information About Starting a Business in New Zealand

Source: Te Ara – The Encyclopedia of New Zealand - Industrial Sectors [17]

Source:

NZ Inland Revenue - Tax Rates for Businesses [18]

Ministry of Business, Innovation and Employment - Funding Information and Opportunities [19]

Source: NZ Companies Office - Starting a Company [20]

Source: NZ Immigration - Visas that Allow you to Start a Business or Invest [21]

Who is New Zealand Best For?

✅ Entrepreneurs seeking a stable, low-bureaucracy business environment with strong investor protections.

✅ Startups in tech, agribusiness, and food sectors benefiting from R&D incentives & government support.

✅ Business owners looking for a clear path to residency while enjoying a high quality of life.

Our Verdict on New Zealand

New Zealand scores 9/10 for its straightforward business setup, political stability, and high quality of life. Its low bureaucracy, digital incorporation process, and innovation-friendly environment make it an excellent choice for entrepreneurs. 

However, higher corporate taxes and geographical remoteness may pose challenges for businesses focused on global expansion.

The United Arab Emirates (UAE) has evolved into a leading global business hub, offering 100% foreign ownership in free zones, tax incentives, and visa pathways for entrepreneurs. With one of the largest and most diversified economies in the Middle East, the UAE attracts businesses across trade, finance, logistics, real estate, and tech—beyond its historic reliance on oil. [22] [23] The country’s corporate tax policy (0% in free zones, 9% for mainland businesses), 143+ double taxation agreements, and long-term visa options make it a prime destination for international companies seeking regional expansion and financial advantages.

Key Information About Starting a Business in the UAE

Source: UAE Ministry of Economy - Promising Economic Sectors [24]

Source: UAE Ministry of Economy - Free Zones [25]

Source:

UAE Government portal - Corporate tax (CT) [26]
UAE Ministry of Economy - Double Taxation Agreements [27]

Source: UAE Ministry of Economy - Establish Companies in the UAE [28]

Source: UAE Government portal - Visa and Emirates ID [29]

Who is the UAE Best For?

The UAE is an ideal choice for:

✅ Entrepreneurs & investors looking for tax-free zones & full foreign ownership.

✅ Businesses in trade, logistics, tech, or finance seeking a strategic global hub.

✅ Companies needing a Middle Eastern base with easy visa & residency options.

Our Verdict on UAE

The UAE is a top destination for foreign entrepreneurs, offering 100% foreign ownership, tax incentives, and strategic market access. Free zones make it easier to set up a business, while the low-tax environment and global connectivity make it ideal for international companies. However, mainland businesses face stricter regulations and a 9% corporate tax, making free zones the preferred choice for many. Overall score: 9/10.

Switzerland is a European powerhouse for finance, innovation, and global trade, excelling in industries like banking, pharmaceuticals, and high-tech. [30] The country offers 100+ double taxation treaties and competitive corporate tax rates (11.5%–21.04%). [31] With one of Europe’s lowest VAT rates, it provides a cost-effective environment for business expansion. 
While 100% foreign ownership is allowed in most sectors, certain strategic industries have restrictions, and non-EU nationals face stricter residency requirements. With a stable economy, world-class banking system, and strong intellectual property protections, Switzerland offers one of the most stable and business-friendly environments in Europe. [32]

Key Information About Starting a Business in Switzerland

Source: The Heritage Foundation - Index of Economic Freedom [33]

Source: SME Portal - Setting up a Company as a Citizen of a Third State [34]

Source: SME Portal - Entry, Residence & Working [35]

Who is Switzerland Best For?

Switzerland is an ideal choice for:

✅ Entrepreneurs prioritizing economic stability, legal protection & financial security.

✅ Businesses in finance, pharma, tech, or premium goods targeting high-income markets.

✅ Companies looking for a European base with strong banking & intellectual property laws.

Our Verdict on Switzerland

Score: 8.5/10 – Switzerland boasts a low-tax, highly competitive economy with strong banking infrastructure and global market access. Yet, its strict banking compliance and moderately complex company formation process can pose challenges for foreign entrepreneurs. Still, for those prioritizing long-term business stability, financial security, and top-tier talent in Europe, Switzerland remains a solid choice.

Canada, the world’s second-largest country by land area, offers a stable economy, competitive corporate tax rates, and strong global trade ties. With access to the USMCA free trade agreement and 93+ double taxation treaties, Canada provides a strategic entry point into North America. [36] [37] Entrepreneurs benefit from 100% foreign ownership in most sectors, government-backed startup incentives, and multiple visa pathways, including the Startup Visa and Entrepreneur Work Permit, making Canada an attractive destination for both business expansion and relocation.

Key Information About Starting a Business in Canada

Source:

Department of Finance Canada - Corporation Tax Rates [38]

GOV of Canada - Business Benefits Finder [39]

Source: GOV of Canada - Starting a Business [40]

Source: GOV of Canada - Startup Visa Program [41]

Who is Canada Best For?

Canada is an ideal choice for:

✅ Entrepreneurs seeking a straightforward pathway to permanent residency while building a business.

✅ Businesses looking to expand into North America with access to USMCA trade benefits.

✅ Tech startups & R&D-heavy companies benefiting from government grants & tax incentives.

Our Verdict on Canada

Canada earns a 9/10 for foreign entrepreneurs, offering low corporate taxes, strong USMCA trade access, and a skilled workforce. While some provinces require local directorship, British Columbia allows 100% foreign ownership, making incorporation easier.

The United Kingdom is a globally connected business hub with a strong financial sector, pro-entrepreneurship policies, and a well-established legal framework. London ranks among the world’s top financial centers, offering deep capital markets and a thriving fintech ecosystem. [42] With 100% foreign ownership in most industries, a competitive corporate tax structure, and government-backed investment schemes like SEIS & EIS, the UK provides an attractive and well-regulated market for foreign entrepreneurs.

Key Information About Starting a Business in the UK

Source: UK Government - Sectors [43]

Source: GOV UK - Business Tax and VAT [44]

Source: GOV UK - Register as an Overseas Company [45]

Source: GOV UK - Visas and Immigration [46]

Who is the UK Best For?

✅ Entrepreneurs seeking a fast, secure business setup with strong legal protections.

✅ Startups & SMEs looking to raise capital from one of the world’s largest investment hubs.

✅ Businesses expanding into the UK & European markets while leveraging an English-speaking environment.

Our Verdict on the UK

The UK scores 9/10 as a business destination. It excels with low business complexity, 100% foreign ownership, and a world-class financial ecosystem. Fast company incorporation and strong startup incentives make it an attractive hub for global entrepreneurs. That said, navigating employment and data protection laws can be complex, and London’s high living costs may not suit all business owners.

When starting a business abroad, choosing the right country is a crucial decision. Various factors, including legal requirements, tax policies, business complexity, costs, and lifestyle, can impact your success.

Each country has unique regulations and benefits, making it essential to assess how well they align with your business model, industry, and long-term goals. The following sections outline key factors to help you make an informed decision.

Legal and Regulatory Requirements 

When expanding internationally, it’s crucial to understand foreign ownership rules, taxes, visa requirements, labour laws, and banking regulations. Below are the essential factors to evaluate:

1️⃣ Foreign Ownership Restrictions

Some countries allow 100% foreign ownership, while others require a local partner or shareholder.

• Restrictions may vary based on industry type (e.g., financial services, telecommunications).

2️⃣ Tax Regulation

• Evaluate corporate tax rates, capital gains tax, VAT/GST, and dividend taxes to understand your financial obligations.
• If minimising tax liability is a priority, explore countries with low corporate tax rates.
• Check whether the country has Double Taxation Agreements (DTAs) to prevent being taxed twice on the same income in both your home country and the new market.

3️⃣ Visa Requirements

• Some countries require investor, business, or entrepreneur visas for foreign business owners.
• Others offer fast-track visa programmes or residency options for foreign entrepreneurs and investors.

4️⃣ Labour Laws

• Research minimum wages, working hours, and employee rights to ensure compliance.
• Some countries enforce strict foreign hiring policies, requiring work permits or quotas for expatriate employees.

5️⃣ Banking & Financial Regulations

• Some countries have strict banking requirements for foreign businesses, including local presence rules.
• Check if you can access multi-currency business accounts and whether international transactions are subject to restrictions.
• Some banks require a local address or in-person visit to open a business account.

Business Environment

The business environment consists of external factors that impact how a company operates and grows. When choosing a country for your business, consider:

1️⃣ Economic Conditions

• Assess GDP, inflation rates, and overall economic stability.
• Check growth prospects—is the economy expanding or stagnating?
• Refer to the Global Business Complexity Index (GBCI) 2024 and the Global Entrepreneurship Index (GEI) to assess business complexity and entrepreneurship opportunities. [47]
• Assess exchange rate stability, especially if your business relies on international transactions or imports/exports.

2️⃣ Infrastructure & Skilled Workforce

• Evaluate the quality of transportation, internet, and logistics.
• Consider the availability of skilled labour—does the country have a talent pool that fits your industry’s needs?
• Consider labour costs, as wages vary significantly across countries.

3️⃣ Government Support & Political Stability

• Look for government incentives, startup grants, and business-friendly policies.
• Political stability is crucial—frequent policy changes or instability may affect business operations.

4️⃣ Market Competitiveness & Industry Landscape

• Analyse the number and strength of competitors in your sector.
• Consider market saturation—is there room for new businesses, or is the industry overcrowded?
• A competitive market can drive innovation but may also lead to pricing pressure and lower profit margins.

Startup and Maintenance Costs

When evaluating a country for business, consider both initial setup costs and ongoing operational expenses to ensure long-term financial sustainability. Factors such as industry regulations, government fees, and economic policies affect these costs.

1️⃣ Startup Costs

• Company registration fees—Costs vary depending on the country and business structure.
• Legal and administrative expenses—Including notary fees, business licenses, and permits.
• Office space and infrastructure setup—Whether renting or purchasing, real estate costs can differ significantly.
• Visa and work permit fees—Some countries require business owners and employees to obtain specific permits, adding to startup expenses.

2️⃣ Ongoing Maintenance Costs

• Annual business renewal fees—Some countries require yearly renewals and government filings.
• Taxes and regulatory compliance—Corporate tax, VAT, and social security contributions for employees.
• Operational expenses—Rent, utilities, payroll, and insurance contribute to overall business sustainability.
• Hiring and employment costs—Including recruitment fees, employee benefits, and mandatory social security contributions.
• Hidden costs—Some countries have additional expenses like mandatory insurance, foreign transaction fees for cross-border payments, and local service charges.

Lifestyle 

If relocating is part of your plan, consider the quality of life in the country. The right environment can impact both personal well-being and business success.

• Cost of Living: Assess housing, utilities, groceries, and daily expenses to match your financial expectations.
• Transportation & Infrastructure: Evaluate public transport, road conditions, and commuting convenience.
• Climate & Environment: Consider the weather, air quality, and outdoor lifestyle that best suits you.
• Healthcare & Education: Check the availability and affordability of medical care and schooling options.
• Cultural Fit & Work-Life Balance: Some countries have fast-paced work cultures, while others prioritise flexibility—find a location that aligns with your lifestyle.
• Internet & Digital Connectivity: If your business relies on online operations, ensure stable internet and strong digital infrastructure.
• Language & Communication: Some locations may require proficiency in the local language for business contracts, banking, or networking.

Starting a business abroad presents challenges like banking, legal compliance, and regulations. Understanding these hurdles and finding solutions can streamline the process and prevent legal issues. 

Below, we cover three key challenges and how to overcome them.

Opening a Business Bank Account as a Foreigner

Setting up a business bank account as a foreign entrepreneur can be challenging due to strict verification processes, residency requirements, and compliance regulations. 

Traditional banks often require:

• A physical presence or local director in some jurisdictions.
• Extensive documentation, including a business license, proof of address, and financial statements.
• Lengthy verification periods, sometimes taking weeks or even months.

Navigating Local Business Regulations

Each country has specific legal requirements that foreign entrepreneurs must comply with, including:

• Foreign Ownership Laws: Some industries require local partnerships or impose restrictions on foreign ownership.
• Tax Obligations: Understanding corporate tax rates, VAT, and double taxation treaties is essential to avoid unexpected liabilities.

Business Registration & Licensing: Certain industries require special licenses or sector-specific approvals before operations can begin.

Visa & Residency Options

Many foreign entrepreneurs need to secure a business, investor, or entrepreneur visa to operate legally. Visa options vary by country:

• Startup or Entrepreneur Visas – Available in Canada, the UK, and New Zealand, often requiring an endorsed business plan or investment.
• Investor Visas – Countries like the UAE (Golden Visa) and Switzerland offer long-term residency options for high-net-worth entrepreneurs.
• Work & Business Residence Permits – In some countries, a company director must be a resident, requiring a work or investment visa.

Choosing the right country to start a business depends on factors like market access, tax policies, and regulatory ease. Consider your industry, target market, and long-term goals to make the best decision. Partnering with local experts can simplify incorporation, banking, and compliance, helping you launch with confidence.