Which Country is Best to Start a Business? Top Picks for Entrepreneurs

Introduction to Starting a Business Abroad

Starting a business overseas is one of the most rewarding yet challenging tasks that a new or growing business can undertake. This process is not simply about gaining global expansion somewhere that your brand can be recognised. It also provides your business operations with new market access into untapped areas, sources a wide range of business incentives, and further aids in getting a better competitive position in global supply chains. Most of the time, being present in the right international market allows businesses to utilise benefits like lower operational expenses, tax-free zones, free-trade agreements, diverse workforces, and fast access to new consumer bases.

Nonetheless, beginning a business internationally has its own set of challenges. Each country has different regulations and an associated market, so a business model that succeeds in one location may not work as smoothly in others. Differences in regulatory policies, taxes, and customer expectations regarding preferred payment methods need to be understood from the beginning. Entrepreneurs who invest time in understanding the local culture and business customs have better chances of succeeding and excelling in a global market.

What to Consider Before Selecting a Country to Start a Business

Before we determine which country is best to start a business, it's essential to assess several foundational elements:

Business Environment and Operations

Evaluate the ease of business operations in the country.

Consider key factors such as:

• The simplicity of business registration
• Business setup
• Skilled workforce availability
• The country's reputation
• Tax obligations
• Labour laws
• Business opportunities
• Foreign ownership regulations
• Political stability
• The efficiency of legal systems

A supportive business environment can significantly reduce operational hurdles and facilitate smoother day-to-day activities.

Tax Considerations for Foreign Entrepreneurs

Tax laws and policies can greatly impact your profitability. Investigate corporate tax rates, tax breaks, the availability of tax incentives, and the presence of double tax agreements. Some countries offer favourable tax benefits to attract foreign investment, which can be advantageous for new businesses.

Business Expansion and Growth

Consider the country's potential for business growth. Determine whether it’s in a strategic location, and assess market size, consumer behaviour, and the presence of industry clusters.

Additionally, evaluate the availability of funding opportunities, such as venture capital and government grants, which can support your expansion plans.

Top Countries to Start a Business

So, which country is best to start a business?

Based on various factors, including ease of doing business, tax policies, and growth potential, the following countries are top picks to start a business for foreign business owners:

Hong Kong

Hong Kong stands out as one of the world’s most open and business-friendly environments. It is known for its thriving startup scene, minimal red tape, and transparent regulatory framework. Launching a business here is both fast and cost-effective. Entrepreneurs benefit from a simple tax regime, with a low corporate tax rate capped at 16.5% and no VAT or capital gains tax. English is widely used in business and legal documents, which makes navigation easier for international founders.

Its strategic location in the heart of Asia, with direct access to the most populous nation (China), positions it as an ideal base for companies seeking strategic market access to regional and global markets. The city's well-developed financial services sector and world-class logistics infrastructure also make it a top choice for business operations as well as trading, fintech, and service-based businesses.

Singapore

Singapore is consistently rated among the top countries in the world for ease of doing business, and for good reason. With a stable government, a highly skilled workforce, and a digital-first economy, it offers an ideal environment for foreign businesses and SMEs. The corporate tax rate is capped at 17%, and qualifying startups can enjoy tax exemptions/free trade agreements for their first few years of operation.

Singapore’s pro-business policies are matched by excellent infrastructure, a robust legal system, and strong IP protection, which is especially attractive to tech-driven companies. The country also serves as a launchpad into the wider ASEAN region, making it a strategic location for a business’s expansion plans.

The United Arab Emirates (UAE)

The UAE, and in particular business hubs like Dubai and Abu Dhabi, has evolved into a hotspot for global entrepreneurs. The country offers a compelling package: no personal income tax, low corporate taxes in free zones, and full foreign ownership in many sectors. Free zones also streamline the process of starting and running a business, with minimal paperwork and clear government support.

Its prime geographical position allows businesses to reach markets in Asia, Europe, and Africa with ease. The UAE also boasts a highly connected digital and physical infrastructure.

The United Kingdom

The UK is home to one of the world’s largest and most diverse economies, making it a strong option for entrepreneurs seeking access to a mature consumer base and innovation-driven sectors. Its legal system is transparent and well-established, and the government offers several schemes to support international entrepreneurs, including startup loans and innovation grants.

Despite Brexit, the UK remains a gateway to European countries with free trade agreements and strategic partnerships. Businesses benefit from competitive tax incentives, making it an attractive destination for tech startups and scale-ups alike.

Canada

Canada combines a high quality of life with a strong, stable economy and a progressive business climate to provide the best work-life balance. The country is highly supportive of entrepreneurs, with federal and provincial funding programs that include innovation grants, startup visas, and tax credits for research and development.

Its workforce is multilingual and well-educated, and the country’s proximity to the US market—its largest trading partner—offers a significant advantage for export-focused businesses. Emerging industries like clean tech also make it ideal for socially-conscious entrepreneurs.

Switzerland

Switzerland offers a unique blend of political neutrality, economic stability, and high living standards. It’s home to global leaders in pharmaceuticals, finance, precision manufacturing, and high-tech innovation. Businesses benefit from competitive corporate tax rates, double taxation treaties, and a highly efficient regulatory environment.

The country’s emphasis on privacy, quality, and long-term thinking makes it especially appealing to companies operating in regulated industries or seeking to build premium brands. 

Challenges of Starting a Business Abroad

Starting a business in a new country comes with exciting opportunities, but it also presents unique challenges that shouldn’t be overlooked. From navigating unfamiliar regulations to adapting to a different cultural and consumer landscape, foreign entrepreneurs must be well-prepared to overcome obstacles that could impact their operations and growth plans.

Even in business-friendly environments, success abroad requires more than just a solid business model—it demands local insight, strategic adaptability, and thorough preparation. Understanding the potential hurdles in advance allows you to mitigate the risks.

• Cultural Differences: Every market has its own way of doing business. From negotiation styles to consumer expectations, understanding the local culture and respecting local customs is essential for effective communication, team management, and customer engagement. Ignoring these nuances can lead to misunderstandings or missed opportunities.
• Regulatory Compliance: Each country has its own set of rules for company formation, taxation, employment, and data protection. Without proper guidance, it's easy to overlook important legal obligations. Entrepreneurs should consider working with local legal experts to stay compliant and avoid costly mistakes.
• Language Barriers: Communication is key to business success, and language differences are a major obstacle, especially in areas like marketing, customer service, and legal documentation. Hiring multilingual staff or professional translators will bridge the gap and improve collaboration.
• Logistical Issues: Establishing supply chains, distribution networks, and product delivery systems in a foreign country can be complex. From customs regulations to vendor relationships, logistics require careful planning and reliable partners to ensure smooth operations.

Expand Your Business Effortlessly with an Aspire Business Account

Whichever country you choose to start your business in, it’s important to establish strong and streamlined financial operations from day one. This allows you to focus more on expanding globally and less on administrative and manual tasks. If you decide to set up in Hong Kong, consider Aspire as your reliable financial partner.

With Aspire, you can open a Business Account with no account opening fees, minimum balance, or initial deposit requirements. Enjoy multi-currency collection accounts in major currencies such as HKD, USD, and EUR, allowing you to send and receive payments without incurring conversion fees.

Aspire also enables you to make global payments in over 30 currencies across more than 130 countries, all with low, transparent fees. Plus, with Aspire’s Expense Management solution, you can streamline your budgeting process, gain full visibility into your real-time spending, and avoid overspending.

Sign up with Aspire today to enjoy all the financial services you need to grow your business!

Frequently Asked Questions

What factors should I consider when choosing a country to start a business?

You’ll want to evaluate the ease of doing business, tax structures, and access to a highly skilled workforce, as well as how supportive the legal and regulatory environment is. Market potential and infrastructure also matter, especially if you plan to scale. 

Are there countries that offer tax incentives for foreign entrepreneurs?

Yes, several countries offer attractive tax perks to foreign businesses. Singapore, for instance, has tax exemptions for new startups. The UAE’s free zones provide tax holidays and 100% foreign ownership. Ireland is also popular for its low corporate tax rate and innovation incentives.

How can I manage multi-currency transactions when operating internationally?

A solution like Aspire’s Business Account makes it easy to manage multiple currencies in one place. It simplifies payments, reduces exchange rate risks, and helps you avoid the need for separate accounts in different countries.

Is it necessary to have a local partner when starting a business abroad?

It depends on the country. Some require foreign entrepreneurs to work with a local partner or sponsor, while others—especially free trade zones—allow full foreign ownership.

How can I ensure compliance with local laws and regulations?

Working with a local legal or financial advisor is a smart move. They’ll help you understand employment laws, tax filings, and any licences or permits you’ll need.