Choosing a country to start a business in can be quite easy if one researches the advantages offered by different jurisdictions. There are various aspects which should be considered when selecting a business destination and among these we have the taxation system, the incentives and how performant a country’s economy is.
For those interested in starting a business in Europe, setting up a company in Malta, for example, is a good idea because it is one of the most performant economies on the continent.
Apart from these, below are a few other aspects to consider when choosing a business location.
The development of the industry to operate in
One of the most important aspects to consider when choosing a country to set up a business in is how developed the industry the company will operate in is. For the financial sector, foreign businesses can choose to open subsidiary companies in Luxembourg which is known as one of the most prolific financial hubs not only in Europe, but also in the world.
Other financial benefits apart from the taxation system
As mentioned earlier, taxation is a decisive factor when choosing a business location, however, there are also other fiscal advantages foreign investors can benefit from. Many governments offer various incentives and stimulants for those making specific investments.
Another option is to go directly for an offshore destination which offers a zero-taxation system. One of the most renowned such destinations is the Cayman Islands. As a business form, the Cayman exempt company is preferred by most business persons.
The ease of doing business
Another important factor to consider when choosing a destination is the ease of doing business in the chosen country. There are many international reports and indexes which measure the ease of doing business in countries around the world and most of the reports are based on investors’ opinions and economic performances, so it is quite easy to have a clear picture of the chosen location.
The chosen country’s legal system
One of the crucial aspects of selecting a business location is the legal system as knowing how the judicial system works there can have a major influence on the business environment, especially when dealing with various international commercial disputes.
From this point of view, the UK is probably one of the best European countries. With strict laws and many international treaties, the UK is quite a secure business destination from a legal point of view. It is also easy for foreign business owners to find a good criminal lawyer, in case they need one.
There are many aspects to consider when deciding to open a company in a foreign country, however, it is good for each investor to tailor the investigation on that destination based on his/her needs. For example, creating a list with crucial and less important requirements and comparing several countries based on these requirements is a good idea when choosing a business destination.