Each country has a different taxation system, licensing authorities, and business environment. As a foreign investor or entrepreneur, it can be tricky to choose the best country in which you start your business.
This guide solves that problem for you. It highlights the best countries and why you should choose them. By the end of the guide, you will have your pick in line with your business goals.
What Makes a Country Good for Business in 2025?
With the evolving market standards and business opportunities, it is hard to describe what exactly makes a country best for business. However, you can look for certain standards and see if they align with your business goals. Here are a few tips to consider:
1. Look for Pro-Business Government Policies
Choose a country where the government supports entrepreneurship through streamlined company registration, tax incentives, and reduced red tape.
2. Prioritize Political & Economic Stability
A stable environment reduces risk. Look for low inflation, consistent growth, and a transparent legal system that protects investors.
3. Check for Low Tax Rates & Business Costs
Favorable corporate tax rates, minimal hidden fees, and affordable utilities or rent can give your business an edge.
4. Explore Strategic Location & Trade Access
Being near key markets or global trade routes (like in the UAE or Singapore) can lower shipping costs and open more growth opportunities.
5. Seek Out Free Zones or Special Economic Areas
These areas often offer 100% foreign ownership, duty-free imports/exports, and simplified licensing processes.
6. Look at the Talent Pool & Labor Laws
Choose a country with skilled workers in your industry. Flexible labor laws and ease of hiring are a bonus.
7. Evaluate the Infrastructure & Tech Readiness
Reliable transport, internet, banking, and digital services matter. A country investing in digital transformation is future-ready.
8. Ensure Strong Legal Protections for Foreign Investors
Make sure contracts are enforceable and your assets are protected under the law, especially as a foreign investor.
9. Review Access to Financing & Banking
Countries with a strong financial system, investor-friendly banking, and access to venture capital or grants offer better support.
10. Check for Ease of Import/Export & Customs Regulations
Smooth logistics and transparent customs rules help businesses scale internationally without frustrating delays.
Overview of the Best Countries to Start a Business
| Country | Key Advantage | Best For | Tax Benefit |
|---|---|---|---|
| 🇦🇪 UAE | 100% foreign ownership in free zones | E-commerce, logistics, tech, Manufacturing | 0% personal income tax |
| 🇸🇬 Singapore | Fast setup, strong legal system | Finance, startups, trade | 17% corporate tax |
| 🇨🇠Switzerland | Stable economy, privacy laws | Pharma, finance, manufacturing | Low corporate tax in some areas |
| 🇳🇱 Netherlands | Startup visa, EU access | Tech, logistics, creative | Tax incentives available |
| 🇨🇦 Canada | Support for small business | Green tech, SaaS, retail | Grants + low tax options |
| 🇪🇪 Estonia | Run business 100% online | Freelancers, digital nomads | 20% only on distributed profits |
| 🇺🇸 USA | Huge market, global investors | Tech, health, entertainment | State-level tax benefits |
| 🇩🇪 Germany | Strong industry & logistics | Engineering, manufacturing | Standard EU tax |
| 🇦🇺 Australia | Asia-Pacific access | Education, tourism, e-commerce | R&D tax incentives |
| 🇮🇪 Ireland | Very low corporate tax | Software, fintech, EU HQs | 12.5% corporate tax |
Top Countries to Start a Business Abroad
1. 🇦🇪 United Arab Emirates (UAE)
Why it’s great: The UAE is one of the easiest places to start a business in the Middle East. You don’t need a local partner, and you can fully own your business in many free zones.
Key benefits:
- No personal income tax and very low business taxes.
- Over 40 free zones with special rules, fast setup, and 100% foreign ownership.
- Great location between Europe, Asia, and Africa.
- Fast internet, banking, and smart government systems.
Best for: Tech, e-commerce, logistics, tourism, and professional services.
2. 🇸🇬 Singapore
Why it’s great: Singapore is known for being clean, safe, and business-friendly. It has simple rules, low taxes, and a strong legal system.
Key benefits:
- 17% corporate tax rate.
- Easy registration, can be done in a few days.
- Strategic location in Asia.
- Skilled and educated workforce.
Best for: Finance, startups, biotech, and international trade.
3. 🇨🇠Switzerland
Why it’s great: Switzerland offers strong privacy laws, a stable economy, and low corruption.
Key benefits:
- Low taxes for certain companies.
- Reliable banking system.
- Skilled labor and high productivity.
- Home to many global companies.
Best for: Pharma, finance, luxury goods, and manufacturing.
4. 🇳🇱 Netherlands
Why it’s great: The Netherlands is open to foreign businesses and offers many tax advantages.
Key benefits:
- Strong international trade links.
- Startup visa options for entrepreneurs.
- English is widely spoken.
- Great infrastructure and transport.
Best for: E-commerce, tech, logistics, and creative industries.
5. 🇨🇦 Canada
Why it’s great: Canada welcomes immigrants and offers many support programs for small businesses.
Key benefits:
- Transparent legal system.
- Grants and loans for startups.
- High quality of life.
- Access to U.S. and global markets.
Best for: Green tech, SaaS, retail, and food industries.
6. 🇪🇪 Estonia
Why it’s great: Estonia is a digital leader. You can even run a business online from anywhere using its e-Residency program.
Key benefits:
- Fully digital company registration.
- Low costs and flat 20% tax on distributed profits.
- Fast government services.
- Strong focus on IT and innovation.
Best for: Freelancers, digital nomads, and online businesses.
7. 🇺🇸 United States
Why it’s great: The U.S. offers a huge customer base, strong legal protections, and access to top investors.
Key benefits:
- Large economy with many opportunities.
- Many states offer low or no business taxes.
- Home to many of the world’s biggest companies.
- Business-friendly laws.
Best for: Tech, finance, health, and entertainment.
8. 🇩🇪 Germany
Why it’s great: Germany is the biggest economy in Europe. It offers strong industry, quality engineering, and great logistics.
Key benefits:
- Access to the EU market.
- Skilled labor and strong education system.
- Many support programs for startups.
- Good public infrastructure.
Best for: Manufacturing, engineering, and automotive businesses.
9. 🇦🇺 Australia
Why it’s great: Australia has strong trade ties with Asia and a stable business environment.
Key benefits:
- Transparent tax and legal systems.
- Business-friendly cities like Sydney and Melbourne.
- Support for innovation and R&D.
- High standard of living.
Best for: Health tech, education, tourism, and e-commerce.
10. 🇮🇪 Ireland
Why it’s great: Ireland has one of the lowest corporate tax rates in Europe and is a favorite for global tech companies.
Key benefits:
- 12.5% corporate tax rate.
- Access to the EU single market.
- Strong startup ecosystem.
- English-speaking workforce.
Best for: Software, fintech, and international HQs.
Why UAE is Best for Business Expansion
The UAE offers new business owners a smooth setup process and ease of doing business in the country. The low corporate tax rate of 9% only above the income of AED 375,000, and no income tax, attract global businesses to register a company and allow them to expand their operations systematically quicker than in any other country.
The UAE is a hub for many business sectors. You become a part of a very diversified community consisting of international investors, entrepreneurs, and MNCs. It’s easy to set up a business in the Mainland and the Free Zones. Each provides unique perks.
Setup a Company in the UAE as a Foreign Business Owner
If you’re choosing the UAE as the country for starting a business, it is important to understand the business setup process for international businesses. Follow this set of steps to register your company and legalize your business operations:
Step 1: Choose your business activity based on what you plan to offer.
Step 2: Decide on the right jurisdiction – Mainland, Free Zone, or Offshore.
Step 3: Reserve a trade name that follows UAE naming rules.
Step 4: Submit your license application and get necessary approvals.
Step 5: Secure an office space, either physical or virtual.
Step 6: Apply for your visa and any employee visas if needed.
Need Help? IBG Consultancy helps streamline the entire process of business registration, from business activity selection to license approval and visa support.
Frequently Asked Questions (FAQs)
1. What should I consider when choosing the best country to start a business in 2025?
When choosing the best country, consider factors like taxation, ease of market entry, legal protection, and access to skilled labor. A country with strong business growth potential and low business costs is ideal, especially if you’re looking to start a business.
2. Why is Singapore a top choice for international business?
A company in Singapore benefits from its low taxes, quick registration, and investor-friendly laws. It’s one of the top countries for international trade, offering a safe and efficient environment for business expansion.
3. How does the ease of doing business affect foreign entrepreneurs?
The ease of doing business impacts how quickly you can set up a company, access banking, and hire staff. Countries ranked high in the World Bank’s Doing Business report are often among the best countries for foreign entrepreneurs to start.
4. What are the best countries for foreign entrepreneurs to start a business?
Some of the best countries for business include the UAE, Singapore, Estonia, and Canada. These countries for foreign entrepreneurs offer strong legal systems, low taxes, and supportive policies for starting a business abroad.
5. How do I register a business in another country?
To register a business abroad, you’ll need to choose a jurisdiction, prepare documents, and go through a local company registration process. Many countries like Estonia and the UAE allow you to register a business online as a foreign business owner.
6. Is it easy to launch a business in a new country?
Yes, launching a business in another country is easier than ever, especially in the easiest countries to start like the UAE and Singapore. These destinations are built for entrepreneurs to start a business quickly with minimal red tape.
7. Which countries offer the best business opportunities?
If you’re looking to start a business, countries around the world like Ireland, the Netherlands, and the UAE offer great business opportunities due to strong digital infrastructure, low corporate tax, and large consumer markets.
8. Why is choosing the right country important for business growth?
Choosing the right country affects your ability to expand your business, reach customers, and scale operations. A supportive business landscape and reliable trade systems are key to long-term business growth.
9. How can I choose a place to start a company as a foreigner?
Choosing a country as a foreigner depends on your sector, budget, and long-term vision. The right country to start offers good infrastructure, double taxation agreements, and a fair legal system.
10. Is Hong Kong a good country for foreign entrepreneurs to start a business?
Yes, business in Hong Kong remains a top choice for foreign entrepreneurs to start. Known as one of the top countries for international trade, Hong Kong offers low taxes, easy company setup, and strong legal protections.
