Everyone aspires to be the boss of their own business, but there are many factors to consider before starting one. Your investment is the most influential factor, among others. Even if you are establishing a private company, the government and economy of the country you are in have a significant impact on your firm. You must have to pay the government to obtain licenses, approvals, and certificates. Some governments have also imposed a minimum capital requirement on businesses.
A significant amount of money may be required to meet all of these parameters. But what if we tell you that you can cut your beginning costs to the bone? Is that something you can do? Yes, by lowering their taxes and capital requirements, several countries have reduced the startup cost of starting a business.
To start a business in Italy, San Francisco, Saudi Arabia, San Jose, Silicon Valley, and California in the United States, you’ll need a large sum of money. In the listed countries, one must pay to go through many testimony procedures and pay taxes.
But the countries including Venezuela, Slovenia, Sudan, Rwanda, Ukraine, Egypt, Denmark, New Zealand, South Korea, United Kingdom, Macedonia, Ireland, and Austria are the cheaper countries for launching a business. These countries have a business-friendly atmosphere, and entrepreneurs may prefer them because obtaining permits and approvals is not hectic at all.
Top 10 Cheapest Countries in the World for Starting a Business
Source: The Cost of Starting a Business in Every Country – BusinessFinancing.co.uk
Based on the World Bank’s Business Report, the following are the world’s 10 cheapest countries for starting a business:
1. Slovenia
Slovenia is a cost-effective alternative if you have a plan to build or expand your business in the European Union. It is much easier here to start a business after immigration because of the easy registration process. Furthermore, legal processes are quick and inexpensive. Real estate-related businesses can reap more benefits than other types since no taxes are imposed on them.
The citizenry of Slovenia is well-educated, and its infrastructure is well-developed. This country also offers free education to immigrants if they have permanent residency.
In addition, Slovenia is located at the intersection of 4 great countries, between East and West, allowing for better trade between countries. Slovenia’s GDP % in 2020 was 6.321 percent. [1]
2. Rwanda
Based on the World Bank’s Business Report 2020, Rwanda ranked 39th in the world and 2nd in Africa for business climate. As a result of some amendments to their reforms, this country has attracted entrepreneurs to expand and invest here.
While Rwanda has significantly improved its economy by reducing imports, increasing exports of minerals, coffee, and tea, and promoting tourism, construction, agriculture, and mining still remain the main attractions for investors.
This country offers an entrepreneur-friendly environment by easing its restrictions, making it one of the top ten reformers around the world, according to World Bank’s Business Report 2019.
In addition, Rwanda’s poverty rate declined from 57% in 2005 to 45% in 2010, and this ratio has continued to decrease. This country has registered an investment of 2.46 billion USD in 2019, a 22.6% increase from 2018. Rwanda has also been included in Africa’s top 4 least corrupt countries. According to the World Bank, the percentage value of the GDP of Rwanda in 2021 was 5.103%. [2]
3. Venezuela
Venezuela can be a better option for starting a business because of the prominent role of the private sector in controlling the economy of this country. In its simplest form, about 2/3 ratio of Venezuela’s economy depends on funds generated through private businesses.
Venezuela has the lowest cost of petroleum in the world, and its economy is almost entirely based on petroleum exports. The discovery of oil in Venezuela in the 20th century led Venezuela to become one of the world’s most influential oil exporters, almost on a par with Saudi Arabia. [3]
Besides petroleum, manufacturing sectors such as steel, aluminum, electronics, automobiles, beverages, and cement are also of critical importance in maintaining the GDP of Venezuela.
Despite Venezuela being one of the cheapest countries in the world, its GDP percentage in 2021 was -5 %, which is still significantly better than its GDP percentage in 2020, which was -30%.
4. Kazakhstan
Kazakhstan is the ninth-largest country and the largest landlocked country in the world, located in Central Asia. Due to its stable economy, quick registration and straightforward legal processes, business-friendly environment, and affordable taxes, it is one of the cheapest countries for setting up a business.
Kazakhstan is a major trading country as a Eurasian Economic Union (ECU) member. Through this, it has access to 180.5 million people in the country. Further, this country has been ranked 41st in ‘Ease of Doing Business, according to the World’s Bank report. [4]
5. Macedonia
Macedonia is a smaller country but successful in encouraging foreign investors due to its fruitful economic reforms, relatively low taxes, simple and quick registration method, monetary policies, business-friendly climate, stable currency, geographical value, and reduction in unemployment. Macedonia is surrounded by great countries, which encourages trade. [5]
Furthermore, Macedonia’s open trade policy allows investors to access a huge market, including markets of European Unions, which is the most compelling factor for entrepreneurs.
6. United Kingdom
The United Kingdom is the largest economic power in Europe. This country is preferable for business because of its low taxes, less inflation, the least unemployment, strong economy, direct access to huge markets, and stable trading with surrounding countries.
Most entrepreneurs prefer the UK to gain access to the markets of Europe, which is a huge and economically lucrative market. Further, it is easy for one to immigrate to the UK without any hassle and get benefits from the vibrant investment environment.
The UK is an ideal location for expanding one’s business internationally since it benefits him not only in the UK but also in its surrounding areas.
According to the World Bank, the percentage value of the GDP of the UK in 2021 was 6.763%. [6]
7. Ireland
Ireland has been ranked first in Europe as the most desirable country for Foreign Direct Investment (FDI). A well-trained workforce is another factor that contributes to the developed market in Ireland, in addition to a stable FDI sector.
Ireland also opens the door to the European market, which includes at least 500 million people. More than a thousand multinational companies have worked in Ireland with remarkable success.
Various businesses, including pharmaceuticals, technology and construction, infrastructure, financial services, and computer programs, have invested in the region in recent years. According to the World Bank, the percentage value of the GDP of Ireland in 2021 was 13.036%. [7]
8. Denmark
Denmark has been ranked among the world’s top countries providing a business-friendly environment for investors. Well-educated youth, hassle-free legal registrations, top-class infrastructures, a stable economy, and relatively low taxes are the factors that may help you to promote your business in Denmark.
Through the collaboration of private sectors, Denmark also has the largest biomedical platforms in the world and is included in the top 6 largest shipping countries of the world. [8]
Denmark is well-known for its powerful social welfare system, which makes it a popular place to do business. According to the World Bank, the percentage value of the GDP of Denmark in 2021 was 3.8%.
9. South Africa
South Africa is the largest economic power in Africa. Entrepreneurs are attracted to it because of its stable commercial sector. In spite of its critical political and social problems, South Africa’s economy is on the right track. Multinational companies are turning to South Africa for a relatively low-cost way to launch a successful business. [9]
There was a time when nobody was ready to move to South Africa and invest there, but now many reforms have been made, leading to amendments in economic roles and regulations, which are now attracting investors to it. According to the World Bank, the percentage value of the GDP of South Africa in 2021 was 5%.
10. New Zealand
New Zealand has a strong market economy. This country ranked 14th on the Human Development Index for 2019 and 3rd on the Economic Freedom Index for 2020.
Entrepreneurs are flocking to New Zealand due to its openness to international marketing, economic friendly reforms, and fast and comfortable services that encourage investors. According to the World Bank, the percentage value of the GDP of New Zealand in 2021 was 5.058%.
Conclusion
Countries including Rwanda, Slovenia, Venezuela, Kazakhstan, Macedonia, United Kingdom, Ireland, Denmark, South Africa, and New Zealand are the world’s cheapest countries for starting a business. These countries foster a business-friendly environment by lowering taxes and making registration simple and quick. In addition to helping one’s business succeed, they help the investors access larger markets, allowing them to develop their firm globally.
References
- https://businessfinancing.co.uk/cost-of-starting-a-business-in-every-country/
- https://www.visualcapitalist.com/which-country-is-the-cheapest-for-starting-a-business
- https://www.rovva.com/en-gb/blog/startups/cheapest-countries-to-start-your-business
- https://en.wikipedia.org/wiki/Venezuela#Economy
- https://www.gov.rw/highlights/economy-and-business
- https://www.gov.uk/government/publications/exporting-to-kazakhstan/exporting-to-kazakhstan
- https://www.3ecpa.com/blog/why-set-up-business-in-macedonia/
- https://www.3ecpa.com/worldwide-office/europe/united-kingdom/
- https://www.3ecpa.com/worldwide-office/europe/ireland/
- https://denmark.dk/society-and-business/business-environment
- https://www.worldbusinessculture.com/country-profiles/south-africa/business-structures/
- https://www.expatarrivals.com/asia-pacific/new-zealand/doing-business-new-zealand
- https://www.statisticstimes.com/economy/countries-by-projected-gdp-growth.php
