If you're looking to start a business overseas, economic freedom is perhaps something you have never thought of. There are numerous elements to take into account when investing abroad, including market access, competitiveness, security, property rights, and adequate legal frameworks and judicial systems. To help you choose wisely, here's an insight into six of the world's most economically-free countries and their benefits for businesses.
Hong Kong
Hong Kong is the world's most economically-free country with a Gross Domestic Product (GDP) of $ 429.7 billion and a 2.4% growth rate. Hong Kong stands out in the fields of business freedom, monetary freedom, and government integrity. As one of the world's most resilient economies, Hong Kong is also a finance and business hub. No wonder it has become one of the favourite destinations for foreign entrepreneurs and investors. This Special Administrative Region (SAR) can boast of its transparency at all levels, a near total absence of corruption, its dynamic entrepreneurial ecosystem, efficient regulatory framework and openness to global markets, not to mention its close ties with mainland China regarding trade and finance. Since the reduction of company registration fees in 2016, it's easier to set up a business in Hong Kong. While there's a 15% income tax, corporate tax doesn't exceed 16.5%. Also, there's less price control in Hong Kong. Government subsidies and regulation of rent, transportation, electricity, and telecommunications are other benefits of investing in Hong Kong.
Singapore
Singapore is the world's second most economically-free country with a $ 492.6 billion GDP and 2.0% growth rate. As one of the world's most prosperous nations, the City-State owes its highly developed market economy to its open business environment, the absence of corruption, transparency at all levels, as well as its monetary and economic policies and tax incentives. Over the years, many multinationals and small and medium-sized companies have benefited from its market diversification. In general, Singapore can boast of an efficient entrepreneurial ecosystem along with flexible labour laws. Also, the government has set up subsidy programs for transportation, housing, and health services – which is without any doubt why Singapore is such an attractive destination for foreign professionals and entrepreneurs. Also, there's a 17% corporate tax in Singapore and a 22% top income tax rate. Choosing to set up your business in Singapore will allow you to benefit from efficient laws protecting property rights, contracts and registration procedures.
New Zealand
In the past year, there was a slight improvement in New Zealand's economic freedom – which brings the country to the third spot. As one of the most attractive destinations of foreign professionals and entrepreneurs, New Zealand has a $ 177 billion GDP and a 3.4% growth rate, making it one of the most prosperous and resilient economies in the Asia-Pacific region for various reasons. New Zealand managed to implement a bipartite market policy in spite of the recent ban on real estate investment to foreigners, the cancellation of certain tax benefits and a rise in the minimum wage, among others. However, it remains among the top countries to invest in thanks to its efficient and competitive entrepreneurial ecosystem. Transparency, a dynamic labour market, the diversification of its economy and markets, and opportunities available in a range of spheres are some of the benefits of launching your startup in New Zealand. Interests on movable and immovable property and contracts are recognised and protected. On the other hand, there's a 28% corporate tax and a 33% income tax.
Switzerland
Switzerland stands out not only for its standard of living and quality of life but also for its efficiency at all levels. With a 496.0 billion dollars GDP and a 0.9% growth rate, Switzerland is the world's third most economically-free country. Also, there were some improvements regarding government integrity and efficient judicial system. Switzerland owes much of the success of its modern market economy to its political stability, transparent legal system, and dynamic regulatory framework. Companies can also benefit from access to a highly skilled and multilingual workforce, developed infrastructure and successful capital markets. A low corporate tax rate (8.5% at the federal level) coupled with the protection of property rights and a stimulating business environment make Switzerland the ideal place to launch your start-up. It's also worth noting that Switzerland has one of the world's lowest unemployment rates and, at the same time, the highest wages.
Australia
With a $ 1.2 trillion GDP and a 2.5% growth rate, Australia is one of the world's wealthiest and most prosperous countries. It comes at the fifth spot thanks to its political stability, transparency, strong judicial system, independent bureaucracy and good governance. There is very little corruption there, and property rights are protected. Virtually all sectors, including services, technology, finance, insurance and value-added products, are open to foreign investors and entrepreneurs – which increases market competitivity. Simplification of procedures relating to opening a business in 2016 helped to create a business-friendly environment. Today, procedures can be completed in less than three business days. Moreover, companies benefit from a highly skilled workforce and a modern and flexible labour code. On the other hand, there's a 30% corporate tax and a 45% income tax.
Ireland
Ireland is probably not the first country you will think of for setting up a business, so you might be surprised to find it at the 6th spot due to much improvement during the past few years. Recovering quickly from the economic crisis, Ireland now has a $ 324.9 billion GDP and a 7.8% growth rate. Ireland offers tax benefits to foreign investors and entrepreneurs. While there's a maximum of 41% income tax rate, corporate tax is capped at 12.5%! Opportunities are available in a range of fields including medicine, information and technology, pharmaceuticals, and food. By choosing to start your business in Ireland, you will also benefit from a flexible and highly skilled workforce, especially in technology. Ireland can also rely on its political stability, efficient regulatory frameworks, and flexible policies. Even though there's some corruption, the interests of movable and immovable property are recognised and preserved. The independent judicial system also guarantees the protection of property rights.
