Registering a foreign (offshore) company can offer some serious advantages. Especially if your business is independent of your location, has the ability to work remotely for employees, as well as a strong demand for its products and services in other countries. In this case, you can choose a strategically more profitable country for the development of your business project.
Before choosing the best country to register a business, there are several key factors to consider that will influence your decision making. Now we will analyze the top of the best countries to start a business.
1) Company registration in Singapore
As a strategical commercial center in Southeast Asia, Singapore can be a profitable country to start a business. With one of the fastest growing regional economies, the city-state has great potential for entrepreneurs looking to register a company in Singapore.
Although the jurisdiction has a corporate tax rate of 17%, there are several different tax incentives for aspiring entrepreneurs. If you are interested in registering a Singapore company, you must appoint at least one director who is a citizen or permanent resident of the country.
- corporate tax 17%
- VAT in Singapore is 7%
- various tax incentives
- stable political and economic situation
2) Registration of a company in Hong Kong
Hong Kong is characterized by a stable financial and political situation. The Special Administrative Region of China is ranked in the top 40 countries in terms of GDP and is the freest economy in the world according to the Index of Economic Freedom. The government of the country stimulates with various legislative acts those who wish to register a company in Hong Kong.
Income tax is 16.5%, there is no capital gains tax and customs duties. VAT is not charged.
In addition, the Hong Kong company registration process is fairly straightforward. With the help of specialists, this can be done remotely in just a few days. The country also has a developed banking system that allows you to open an account for a company from Hong Kong.
- income tax 16.5%
- no VAT and customs duties
- stable political and economic situation
- high GDP
- simple process of company registration
3) Registration of a company in Malta
Malta is another popular choice for the incorporation of international firms. With access to the European market and progressive legislation, the jurisdiction attracts foreign citizens who wish to open a company in Malta. Malta has also signed a large list of double taxation treaties and startups in Malta have access to a skilled workforce. The process of registering a Maltese company takes from 5 working days.
- income tax – 35%.
- VAT is 7%
- royalties – 10%.
- тo customs duties
- double taxation treaties
- simple process of company registration
4) Company registration in the UK
Registration of a company in England takes place by submitting an application to the Companies House. The country is characterized as a world financial center.
If you really want to register a business in the UK, you must fulfill all registration requirements from the regulator and choose a JGA enterprise. In general, all stages of registration of a British company take several weeks.
- VAT is 20%
- corporate tax 19%
- high prestige of jurisdiction and company
- reliable financial system
- ability to remotely manage the company
5) Company registration in Ireland
If you are looking for a prestigious European country to start an international business, Ireland may be the right place.
The relatively low value added tax rate is considered one of the main reasons for the interest of foreign entrepreneurs in registering a company in Ireland. Corporate tax rate: 12.5%, which is one of the lowest in Europe. In Europe, only Cyprus and Hungary can compete with it. For example, in France or Belgium this tax will be about 34%, and in the USA, where most large companies come from, it is 40%.
The resident companies include representatives from different parts of the world, including such giants as Dell, Pfizer, Google, Hewlett Packard, Facebook, Johnson & Johnson and many others.
In order to register a company in Ireland, you do not need to be a resident of the country. That is, there are no requirements for the residency of the director in the country. However, there is a condition that at least one of the directors must be a resident of the European Economic Area.
- corporate tax 12.5%
- VAT is 23%
6) Registration of a company in Portugal
In recent years, the state has become a popular place to start foreign business. Government efforts to attract foreign investment have led to a revision of the Portuguese company registration process and a focus on creating space for new startups.
The local government is committed to creating a favorable business environment for those wishing to register a company in Portugal. This country provides an opportunity to conduct international business due to its reputation and short terms of registration of companies. If the company does not operate in the country, it can take advantage of preferential tax rates.
- VAT – 23%.
- dividends – 20%.
- royalties – 15%.
- fast process of company registration
- founder and owner of the company can be a foreigner, even in the absence of a residence permit
- possibility of doing business in free economic zones: Madeira, Azores;
- opportunity to obtain an EU passport in just 5 years (in comparison with other countries 10-12 years).
These are just some of the facts that may induce entrepreneurs to open a company in Portugal in order to obtain effective and efficient business tools.
7) Company registration in Australia
You can register a company in Australia in a fairly short time, in just a few days. There are various types of companies, but the most common is the Private Limited Company (Ltd company).
Among the advantages of establishing a company in Australia are such opportunities as:
- reduction of tax rates
- stable economy
- government support for business (various funding programs, grants and events that help businesses grow)
- registration of a cryptocurrency company in Australia.
The state has the opportunity to reduce the tax rate if there is no local activity. Based on the company’s turnover, the corporate tax rate ranges from 28.5% to 30%. In order to open a company in Australia, there must be a local director in the structure. It is worth noting that the registration of an Australian company takes place within a few days with all the necessary documentation.
8) Registration of a company in Denmark
Denmark – tax efficient, flexible hiring and firing
Denmark is considered to be one of the easiest countries in Europe to start a business, and it does have several good points:
- with the flexicurity system, you get the most flexible hiring and firing rules in the world, reducing the cost of scaling business operations;
- fast process of company registration;
- no requirements for the citizenship of management, including for the CEO and the board of directors;
- no notarial actions;
- effective tax for setting up your business in Denmark compared to other Nordic countries;
- Danish company legislation is up-to-date and in line with current EU legislation.
9) Registration of a company in Norway
Norway has a strong economy and much of the communication with the government can be done digitally.
Company registration in Norway is fast and tax compliance is relatively straightforward.
- great for online business, since all communication with government agencies is carried out in digital format;
- focus of government support is on the technology business;
- highly qualified employees in the field of IT, finance, design and music technology;
- high economic and state stability;
There are also a few downsides:
- obtaining a building permit can be lengthy;
- labor legislation norms are quite strict, which compensates for the presence of highly qualified personnel.
10) Registration of a company in the UAE
The UAE and Dubai have long attracted millions of investors from all over the world thanks to numerous tax advantages and free zones.
- political and economic stability
- government support for foreign investors and legal framework that protects the interests of business
- high paying capacity of the population
- no taxes on personal income and corporate taxes,
- VAT 5% on a number of internal transactions.
- free trade zones
- developed transport and logistics infrastructure
- lack of currency control, free deposit, withdrawal of capital
What do you think about starting a business abroad? Share your opinion in the comments below! Share your opinion in the comments below! I would be happy to answer any questions or submit your project to my team at Astorts Group for evaluation.
Alessandro Rocco Pietrocola is an entrepreneur and investor based in London and operating mainly in Europe, Asia and Oceania with main focus on UK, Baltic Countries, Russia, China, Hong Kong, Malaysia, Singapore, Middle East and New Zealand as area of interest! At the moment is the CEO of Astorts Group. He is an UK FCA (Financial Conduct Authority) Approved Person and is has great experience as director of regulated companies. He uses to dedicate part of his life to inspire others and help them achieve the most out of their life. Since he was 20, he had successfully founded and managed several companies operating in the field of management consulting, wealth management and fintech. He loves travelling, he is a cigars lover, an amateur golfer and a dapper man.