Best countries to start a business as a foreigner in 2025: costs, laws and lifehacks
Many countries offer benefits and advantages to people who want to start a company. Some countries even have additional benefits for foreigners wanting to start a company. Here is a list of the top 10 best countries to start a company as a foreigner.
Who didn’t dream once about starting a company in that fantastic country to have a good life? Of course, this is not only a dream, it is possible to do, but what are the best countries to do this? And what should you keep in mind, as starting your dream in the best way is the way to go.
How to choose a country for entrepreneurs
Starting a business is more than just following your dream or having a great idea— it’s about finding the right place to change that idea into something real. Choosing the best country to start a company as a foreigner is not easy. Deciding the right (or wrong) country can influence many things, from your startup costs to your long-term growth potential. But with so many options, how to decide? Here are the best countries to do business with a breakdown of key factors to consider when choosing the best location for your dream to come true.
There are several key factors to consider in the various countries that are suitable for the business, depending on the kind of business to start, different locations can be more interesting:
1. Economic Environment
2. Political Stability
3. Governmental Support for Businesses
4. Tax Policies
5. Access to Talent
6. Infrastructure availability
Top 10 Countries to start a business for foreigners
Here, we will look at 10 countries that are known for having easy rules for doing business and which always support ambitious projects. These countries usually have a stable economy and politics, and there are lots of opportunities for financial help and other business support.
Luxembourg
Luxembourg is very attractive for entrepreneurs, offering a strategic location in the heart of Europe, a multilingual workforce (most people speak French, German and English), and a business-friendly environment. Its well-developed fintech and space tech ecosystems make it a hotspot for innovation.
Luxembourg’s tax system and startup costs are designed to attract global entrepreneurs. Every year the government refines the tax laws to keep them competitive compared to other countries.
| Tax/Expense | Details |
| Corporate Tax Rate | 23.87% (effective rate can be lower) |
| Startup Costs | 17% (standard rate) |
| VAT | €12,000–€30,000 (approx.) |
As Luxembourg is accommodating for new companies, securing financial support is certainly an option.
Starting a business in Luxembourg is not difficult, but there are some requirements for foreigners to consider.
- Register with the Trade and Companies Register (RCS).
- Open a corporate bank account with a local bank.
- Provide proof of address and business plan.
- Appoint a local director or representative if required.
When evaluating these factors, Luxembourg consistently checks the boxes. With its robust economy, political stability, and government incentives, it’s one of the top destinations for entrepreneurs. Considering its access to EU markets, multilingual talent pool, and high quality of life, it’s easy to see why so many businesses choose to start there.
Singapore
Singapore is an international business center that is well known for its ease to start a new company. With the streamlined online processes it is easy to create a new company in a few days. Besides that, the taxes are low, and it has a strategic location in Asia. It’s a top choice for companies looking to start doing business in the APAC market.
Singapore’s tax system is one of the most attractive systems in the world for businesses, giving a big advantage to companies. Corporate tax is low, with additional several tax deductions, and no tax on capital gains.
| Tax/Expense | Details |
| Corporate Tax Rate | 17% |
| GST Rate | 9% |
| Startup Costs | SGD 5,000–SGD 10,000 (approx.) |
It is easy to set up a company for foreigners in Singapore, and here are the most important steps to do.
- Appoint at least one local director.
- Register with the Accounting and Corporate Regulatory Authority (ACRA).
- Open a corporate bank account.
- Provide a registered office address.
Singapore is situated in Asia, due to the good infrastructure and logistical possibilities it is a very attractive location if you want to do business there. Considering the low taxes and easy setup of a company, definitely a country that belongs at the top.
Estonia
The government of Estonia is taking the digitalization of the services very serious. They offer e-residency and the business setup process is fully online. It has a transparent tax system and as a member of the EU, access to a large market. It is considered a favorite for starting tech companies.
Considering the technical advanced infrastructure it is a great place to start an online business
| Tax/Expense | Details |
| Corporate Tax Rate | 20% (on distributed profits only) |
| VAT Rate | 20% (standard rate) |
| Startup Costs | €200–€1,000 (approx.) |
Setting up a company in Estonia is an easy online process, but there are some additional requirements for foreigners.
Steps to take to create a company
- Apply for e-residency (optional but recommended).
- Register your company online through the Business Register.
- Open a corporate bank account with a local or EU bank.
- Appoint a local contact person if required.
Estonia is one of the fast developing countries. Considering the growing online global business, this is a good location to start your online business. The process to start is easy and very fast.
United States (Delaware)
Delaware is a top choice for entrepreneurs in the U.S. Thanks to its business-friendly legal framework and low taxes it is a great place to start a company. It’s home to over 60% of Fortune 500 companies.
Delaware’s tax system is designed to attract businesses of all sizes. But due to the tax laws, many big companies are interested in this location.
| Tax/Expense | Details |
| Corporate Tax Rate | 8.7% (on taxable income) |
| Franchise Tax | Between $175–200,000 (depending on the way to calculate it) |
| Startup Costs | $500 (approx.) |
Foreigners can easily incorporate in Delaware without any problems, but there are a few requirements to consider.
Actions to take to register a company in Delaware
- Register with the Delaware Division of Corporations.
- Appoint a registered agent in Delaware.
- File annual reports and pay franchise taxes.
- Open a U.S. corporate bank account.
It is no surprise that the USA is on this list, but even in such a big country some states are better for starting a company then other states, certainly when you are a foreigner. Delaware has some very interesting corporate tax laws for large companies.
Germany
Germany is Europe’s largest economy and a centre for innovation. It offers many advantages to companies like a skilled workforce, a world-class infrastructure, and access to the EU market.
Germany’s tax system is competitive, but it’s important to understand the costs involved. Securing the help of a good accountant can be a benefit.
| Tax/Expense | Details |
| Corporate Tax Rate | 15% (plus solidarity surcharge) |
| VAT Rate | 19% (standard rate) |
| Startup Costs | €10,000–€25,000 (approx.) |
Foreigners are allowed to set up a company in Germany. Certain additional requirements should be taken into account.
Steps not to forget
- Register with the local Trade Office (Gewerbeamt).
- Open a corporate bank account with a German bank.
- Provide a proof of address and a business plan.
- Appoint a local director if required.
In the EU market, Germany is on the top of the manufacturing and engineering sector. Furthermore a very well developed infrastructure is a big benefit too. One point of attention is the fact that without speaking the language, it can be more difficult.
United Arab Emirates (Dubai)
Like most of the other top 10 countries, Dubai is a global business hub, offering tax-free zones, a strategic central location, and a fast growing economy. It’s a top choice for entrepreneurs who want to work with the Middle Eastern and African markets.
Dubai’s tax system is one of the most attractive in the world for businesses. One of the main tasks is to consider in which zone you want to start your business.
| Tax/Expense | Details |
| Corporate Tax Rate | 0% in free zones |
| VAT Rate | 5% (standard rate) |
| Startup Costs | AED 15,000–AED 50,000 (approx.) |
Creating a company in Dubai is not difficult, although there are some more decisions to make then in other countries, Take at least the following requirements in account.
Main steps to start a business
- Choose a free zone or mainland license.
- Register with the Department of Economic Development (DED).
- Open a corporate bank account.
- Provide proof of an address and a business plan.
Starting an international company in one of the free zones is a great way of doing business. Dubai’s location is centrally between main markets which gives it an even bigger advantage. Pay attention to the high cost of living and office spaces.
Switzerland
Switzerland is synonymous with stability, innovation, and high-quality products. Its low corporate taxes and extended protection of intellectual property makes it one of the best choices for starting a new business.
Switzerland’s tax system is designed to attract global businesses and is still considered a tax haven.
| Tax/Expense | Details |
| Corporate Tax Rate | 11.8–20.5% (varies by canton) |
| VAT Rate | 8.1% (standard rate) |
| Startup Costs | euro 7,750– euro 34,190 (approx.) |
Main actions to be taken
- Register with the Commercial Register.
- Open a corporate bank account with a Swiss bank.
- Provide proof of address and business plan.
- Appoint a local director if required.
Ireland
Ireland is a favorite for multinational companies, thanks to its low corporate tax rate, English-speaking workforce, and access to EU markets. It’s a hotspot for tech and pharmaceutical industries.
Ireland’s tax system is one of the most attractive in Europe for businesses. There are 74 tax treaties with other countries.
| Tax/Expense | Details |
| Corporate Tax Rate | 12.5% |
| VAT Rate | 23% (standard rate) |
| Startup Costs | €5,000–€10,000 (approx.) |
Foreigners can easily set up a company in Ireland, but there are additional requirements like a Section 137 bond, a VIF application as well as an PPSN application.
Actions to take
- Register with the Companies Registration Office (CRO).
- Open a corporate bank account with an Irish bank.
- Provide proof of address and business plan.
- Appoint a local director if required.
Ireland is a favorite for the big companies due to the obvious English speaking environment, but that is not the only reason, a low corporate tax rate, access to the EU market and a highly skilled workforce contribute to that too.
Canada
Canada offers a high quality of life, a diverse talent pool, and government support for startups. Its Startup Visa Program makes it easy for immigrant entrepreneurs to launch businesses.
Canada’s tax system is competitive, but it’s important to understand the costs. Using the services of an accountant can be a good decision.
| Tax/Expense | Details |
| Corporate Tax Rate | Effective 15% (federal) + provincial taxes |
| VAT Rate | 5% (GST, federal) |
| Startup Costs | CAD 500–CAD 50,000 (approx. Depending on the size of the company) |
Setting up a company in Canada is not difficult and can be done in approximately 5 business days for a small company.
Steps to remember
- Register with the Canada Revenue Agency (CRA).
- Open a corporate bank account with a Canadian bank.
- Provide proof of an address and a business plan.
- Apply for the Startup Visa Program if eligible.
Depending on the kind of company to start, Canada can be a very interesting location. With access to the North American markets, strong governmental support and a skilled workforce, it is highly recommend.
New Zealand
New Zealand is known for its ease of doing business, transparency, and innovation-friendly environment. It’s a top choice for entrepreneurs seeking a high quality of life and a stable business climate.
New Zealand’s tax system is designed to encourage business growth.
| Tax/Expense | Details |
| Corporate Tax Rate | 28% |
| VAT Rate | 15% (standard rate) |
| Startup Costs | NZD 1,000–NZD 5,000 (approx.) |
Foreigners can easily set up a company in New Zealand, considering the have a valid work visa to do so.
- Register with the New Zealand Companies Office.
- Open a corporate bank account with a local bank.
- Provide proof of address and business plan.
- Appoint a local director if required.
Although New Zealnd will not be the first country to think of, it is a good place to start a company. The registration process of your company is fast and easy, without much corruption and strong laws protecting your business. New Zealand offers a safe and high quality of life. For starting companies the government offers grants and support.
Choosing the right country to start your business is a critical decision that can make or break your company’s future. Each of these 10 countries offers unique advantages, from Luxembourg’s EU access to Singapore’s ease of doing business. By considering factors like tax policies, market access, and quality of life, you can find the perfect location to turn your entrepreneurial vision into reality.
Frequently Asked Questions (FAQ)
What are the main factors to look at for selecting a country to start your business?
Are there countries who give grants and support for new startups?
Which country is the best to start an online business?
Source: taxsummaries.pwc.com, taxfoundation.org, fastercapital.com, www.healyconsultants.com, www.luxembourgforbusiness.lu, www.cc.lu, www.acra.gov.sg, www.enterprisesg.gov.sg, www.e-resident.gov.ee, www.investinestonia.com, corp.delaware.gov, www.sba.gov, www.gtai.de, www.bmwi.de, www.dubaided.gov.ae, www.dubaifreezonecouncil.ae, www.s-ge.com, www.estv.admin.ch, www.idaireland.com, www.revenue.ie, www.canada.ca, companies-register.companiesoffice.govt.nz, www.nzte.govt.nz
We took photos from these sources: Mention all the sources of the images separating them with commas: Bob Ross for Unsplash, University of Luxembourg website, Company Facebook page, etc.
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