The Best Countries to Open a Business in 2021
The world is changing and so are the countries that offer the best opportunities to open a business. Shalom Lamm, an entrepreneur, and a self-starter in many ways, has created a list of the top 5 countries to start a business in 2021. His research was based on three factors: economic outlook, regulatory environment, and risk for political instability. This post discusses why these countries are good for entrepreneurs and what they should look out for before choosing one.
Ireland is one of the best countries to do business in because its corporate tax rate is only 12.5%. This extremely low tax rate has helped the small country become one of the most successful economies in Europe. The country also ranked high in three other categories: ease of doing business, economic indicators, and political stability. Its ease of doing business was due to its transparent fees, no minimum capital requirement, and short-term setup time. Its economic indicators were due to its recent GDP growth, future GDP growth projection, and international trade index.
Sweden ranks second on the list because it has an overabundance of resources and is one of the most stable economies in Europe. Its current GDP growth rate sits at 4% but its future GDP growth projection is 3%. It also ranked well in ease of doing business due to its transparent fees, no minimum capital requirement, and short-term setup time. Lastly, Sweden has a low risk for political instability because the general public doesn’t usually take to the streets in protest against their government.
3. United Kingdom
The UK ranks third on the list because it offers high-quality resources whether one is looking for workers or office space. The country also scored highly in economic indicators thanks to its current GDP growth rate at 2% and future GDP growth prediction at 2%. Additionally, it ranked well with the ease of doing business. There are no minimum capital requirements to start a business and setting up is relatively quick.
Denmark is fourth on the list because it has an abundance of resources including workers and office space at affordable prices. It also scored highly in economic indicators thanks to its current GDP growth rate sitting between 2-3% and future GDP growth projection being around 2%. Its ease of doing business wasn’t rated as high due to its costly registration fees, ongoing mandatory compliance costs, and complicated tax regulations. This for sure made it hard for some entrepreneurs to do business there but if they did it correctly, the rewards were well worth it.
Canada was declared the fifth best country to start a business thanks to its lack of corruption and transparency in government regulations. It also scored extremely high in economic indicators thanks in part to the GDP growth rate sitting at 2% and future GDP growth projection at 2%. However, one category where Canada didn’t score as highly was Ease of Doing Business due to several issues such as short-term setup time, no minimum capital requirement, and mandatory compliance costs.
For any investor that is considering starting a business in a region that will work to their advantage, then these 5 countries as ranked by Shalom Lamm will help them get up and running as fast as possible. However, other factors should be considered before starting a business such as culture & language barriers, ease of doing business, and cost of living. It’s also important to note that each country varies in terms of laws and regulations so they need to do their due diligence before deciding where they want to start a company.