Starting a business in a new country can be exciting, but also overwhelming. From legal paperwork to visa rules, the landscape changes drastically depending on where you go. For foreign entrepreneurs, some countries make it surprisingly easy, while others are full of red tape.
In this guide, we highlight the most business-friendly countries for foreigners in 2025.
How to Choose the Best Country to Start a Business in 2025?
Understand what you want—low taxes, fast setup, talent access, or global reach.
Choose countries where your product or service has strong customer interest or gaps.
Look for business-friendly tax regimes with low corporate or personal tax burdens.
Prioritize countries with simple registration, licensing, and regulatory systems.
Ensure foreigners can fully own companies and repatriate profits easily.
Factor in company registration fees, rent, labor costs, and ongoing compliance.
Choose a country with talent pools in your industry—tech, manufacturing, etc.
Ensure you can legally reside or travel for business via investor or entrepreneur visas.
Look for reliable payment gateways, internet access, and business banking support.
Avoid high-risk regions—opt for countries with consistent governance and strong economies.
Favor countries where communication, culture, or business etiquette aligns with yours.
Choose locations that serve as hubs for expansion—like UAE and Singapore.
Top Countries for Foreign Business Owners
United Arab Emirates (UAE)
The UAE ranks #1 globally in the Global Entrepreneurship Monitor (GEM) 2024/2025 report and remains one of the easiest places for foreigners to start a business. With zero personal income tax, fast online registration, and 47 officially recognized free zones, it offers significant advantages to international founders.
Business Ownership & Zones
- 100% foreign ownership allowed in most sectors—no local sponsor required.
- Free Zones (47): Sector-specific hubs like DMCC, IFZA, RAKEZ,
- Mainland: Full UAE market access with flexible regulations.
Business Structures
- LLC: Suitable for local operations, now open to full foreign ownership.
- Free Zone Company: Ideal for export or remote services.
- Branch Office: For foreign firms expanding into the UAE.
Visas & Residency
- Golden Visa (10 years) and Startup Visa (5 years) available to qualifying entrepreneurs.
- Residency tied to company licenses is common in free zones.
Tax Policy
- 9% corporate tax only above AED 375,000.
- No personal income tax or capital gains tax.
Setup Requirements
To start a business, you’ll need:
- A valid passport
- Business activity description
- Trade name options
- Application forms
Many business setups can now be completed online using the UAE’s official Bashr portal, a unified government platform that links federal and local authorities.
Singapore
Singapore ranks #4 globally in the 2025 Global Startup Ecosystem Index and remains one of the easiest places for foreigners to start a business. With fast online registration, competitive tax incentives, and legal stability, it is a prime hub for expanding into Asia.
Business Ownership & Zones
- 100% foreign ownership permitted in most sectors.
- No minimum capital required (as low as S$1).
- While there are no formal free zones, startup hubs like Block71 and One-North offer strong government support.
Business Structures
- Pte Ltd: Most popular structure offering liability protection and tax benefits.
- Branch Office: Ties to parent company abroad, allows business activities.
- Rep Office: For non-commercial research and testing.
Visas & Residency
- EntrePass: For startup founders with innovative ideas.
- Employment Pass: For founders drawing salary.
- Global Investor Programme: PR route for major investors.
Tax Policy
- 17% corporate tax, but startups enjoy exemptions.
- No capital gains, dividend, or estate tax.
- Territorial tax system with exclusions on foreign-sourced income.
Setup Requirements
Apply via BizFile+; approvals can take as little as 15 minutes.
Estonia
Estonia ranks #11 globally in the 2025 StartupBlink Global Startup Ecosystem Index and is recognized as the best AI startup ecosystem in the EU. With its pioneering e-Residency program, fully digital business infrastructure, and startup-friendly tax policies, Estonia offers an easy entry point into the European market for foreign entrepreneurs.
Business Ownership & Zones
- 100% foreign ownership allowed; no local director required.
- No physical presence needed—manage your company entirely online.
- Access to the EU single market via Estonia’s digital-first framework.
Business Structures
- Private Limited Company (OÜ): Most common, with deferred share capital of €2,500.
- Branch Office: For foreign companies expanding into Estonia.
- Representative Office: For non-commercial activities like market research.
Visas & Residency
- e-Residency: Enables remote company management and access to Estonian e-services.
- Startup Visa: For non-EU founders establishing innovative startups in Estonia.
Tax Policy
- 0% corporate tax on retained and reinvested profits.
- 20% tax only on distributed profits (dividends).
Setup Requirements
To start a business, you’ll need:
- A valid passport
- e-Residency digital ID
- Legal address and contact person in Estonia
- Company name and business activity
- Application via the e-Business Register
Company registration can be completed online, often within one business day.
New Zealand
New Zealand ranks #31 globally in the 2025 StartupBlink Global Startup Ecosystem Index, reflecting its commitment to innovation and sustainability. With a streamlined business setup process, supportive visa programs, and a stable economic environment, it offers a compelling destination for foreign entrepreneurs.
Business Ownership & Structures
- 100% foreign ownership permitted; no local director required.
- No minimum capital requirement; companies can be registered online within hours.
- Common structures include Limited Liability Company (Ltd), Branch Office, and Representative Office.
Visas & Residency
- Entrepreneur Work Visa: Requires NZD $100,000 investment, a detailed business plan, and 120 points on a merit scale. Leads to a 3-year stay.
- Entrepreneur Resident Visa: Offers permanent residency after successfully operating a business for 6 months (with high capital) or 2 years.
- Active Investor Plus Visa: Grants residency with a minimum NZD $5 million investment over three years, with relaxed residency requirements.
Tax Policy
- Flat corporate tax rate of 28% on profits.
- No capital gains tax; dividends are generally not taxed.
- Resident companies taxed on worldwide income; non-residents on NZ-sourced income.
Setup Requirements
To start a business, you’ll need:
- A valid passport
- Proposed company name
- Registered local address
- Application via the Companies Office
Company registration can often be completed online within a few hours.
Canada
Canada ranks among the top 5 startup ecosystems globally (StartupBlink 2025) and offers permanent residency through a dedicated Start-up Visa. With robust legal protections and direct access to the U.S. market, it remains a strong choice for foreign founders.
Business Ownership & Structures
- 100% foreign ownership allowed in most sectors.
- BC and Ontario allow full foreign ownership without a local director.
- Common options: Corporation (Ltd), Branch Office, or Rep Office.
- Online registration via Corporations Canada (federal) or Ontario Business Registry / BC Registries.
Visas & Residency
- Start-up Visa: Permanent residence for founders backed by approved VC, angel, or incubator.
- Work permit available while PR is in process.
- Provincial nominee programs available for SMEs.
Tax Policy
- 15% federal corporate tax; ~26.5% total with provincial rates.
- 9% rate for the first CAD 500,000 if qualified as a small business.
- No estate tax; dividend tax credits apply.
Setup Requirements
You’ll need:
- Valid passport
- Canadian address
- Director info (Canadian or not, depending on province)
Australia: A Dynamic Hub for Global Entrepreneurs
Australia ranks among the top 10 global startup ecosystems (StartupBlink 2025) and offers a robust legal framework, strong investor protections, and access to the Asia-Pacific market.
Business Ownership & Structures
- 100% foreign ownership permitted.
- At least one director must be an Australian resident.
- Common structures: Proprietary Limited (Pty Ltd), Branch Office, or Representative Office.
- Register via ASIC or business.gov.au
Visas & Residency
- For entrepreneurs with state or territory nomination.
- For startup founders with funding agreements.
Tax Policy
- 25% corporate tax rate for base rate entities; 30% for others.
- No capital gains tax on certain assets held for over 12 months.
Setup Requirements
You’ll need:
- Valid passport
- Australian business address
- At least one Australian resident director
United Kingdom
The UK is a top choice for foreign entrepreneurs, offering a transparent legal system, deep funding ecosystem, and quick incorporation. Ranked 8th globally for ease of doing business (World Bank), company registration costs just £12 and can be completed online via Companies House, often within 24 hours.
Business Ownership & Structures
- 100% foreign ownership allowed; no residency requirement for directors.
- Common structures: Private Limited Company (Ltd), Branch Office.
- Virtual business addresses are widely available.
Visas & Residency
- Innovator Founder Visa: For experienced founders with endorsed business ideas.
- Start-up visa now merged under the same route.
Tax Policy
- 19% corporate tax on profits up to £50k, 25% above £250k (with marginal relief).
- No capital gains tax for non-residents on UK shares.
Setup Requirements
You’ll need:
- Valid passport
- UK business address
- At least one director
- Register via Companies House
United States
The United States ranks #1 globally in the Global Startup Ecosystem Index 2025 by StartupBlink, reaffirming its status as the most powerful startup economy worldwide. With robust access to capital, top-tier universities, and a massive consumer market, the U.S. remains a premier launchpad for global entrepreneurs.
Business Ownership & Structures
- 100% foreign ownership allowed—no U.S. citizenship or residency required.
Common structures:
- LLC – Flexible, ideal for small-to-medium enterprises.
- C-Corp (Delaware) – Preferred for VC funding and scalable tech startups.
- Branch Office – For expanding a foreign parent company.
Visas & Residency
- E-2 Visa: For treaty country nationals investing substantially in a U.S. business.
- L-1 Visa: For intra-company transferees establishing U.S. branches.
- O-1 Visa: For entrepreneurs with exceptional achievements.
- No dedicated startup visa yet, though policy discussions are ongoing.
Tax Policy
- 21% federal corporate tax.
- State-level taxes vary (0% in Wyoming, 8.84% in California).
- No VAT; sales tax ranges 0–10% by state.
Setup Requirements
You’ll need:
Hong Kong
Hong Kong ranks #27 globally in the Global Startup Ecosystem Report 2025 by Startup Genome, marking a significant rise of 20 positions from the previous year. Additionally, the World Bank’s Business Ready 2024 Report places Hong Kong among the top 10 economies, highlighting its robust international trade capabilities and efficient business infrastructure.
Business Ownership & Structures
- 100% foreign ownership permitted.
- Common structure: Private Limited Company – requires one director (can be non-resident), one shareholder, and a local registered address.
- No minimum capital requirement; incorporation typically completed within 1–2 days.
Visas & Residency
- Entrepreneur Visa: For individuals establishing or joining a business that contributes to Hong Kong’s economy.
- Top Talent Pass Scheme (TTPS): Targets high-income professionals and graduates from top global universities.
- Permanent residency achievable after 7 years of continuous residence.
Tax Policy
- 8.25% profits tax on the first HK$2 million; 16.5% thereafter.
- No VAT, capital gains tax, or withholding tax.
- Territorial tax system – only income sourced within Hong Kong is taxable.
Setup Requirements
You’ll need:
- Valid passport
- Local registered address
- Company secretary (can be outsourced)
- Register via the Companies Registry
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Comparison: Top Countries to Start a Business as a Foreigner
Compare the best countries for foreign entrepreneurs in 2025 by ownership, tax policies, and visa options.
| Country | Ownership & Setup | Tax Benefits | Visa Options |
|---|---|---|---|
| UAE | 100% ownership, 47 free zones, online setup | 0% personal tax, 9% corporate (over AED 375k) | Golden Visa, Startup Visa |
| Singapore | Full ownership, S$1 capital, register in 15 mins | 17% corp. tax, no cap gains | EntrePass, Investor Programme |
| Estonia | 100% online via e-Residency, no local director | 0% retained profit tax | e-Residency, Startup Visa |
| New Zealand | Fast online setup, no capital needed | 28% corp. tax, no cap gains | Entrepreneur & Investor Visas |
| Canada | Full ownership, online setup, low entry barriers | 15% federal, 9% small biz rate | Start-up Visa, PNPs |
| Australia | 100% ownership, 1 local director required | 25–30% corp. tax | Innovation, Investor Visas |
| UK | Register in 24 hrs for £12, full ownership | 19–25% corp. tax | Innovator Founder Visa |
| USA | 100% ownership, LLC or C-Corp | 21% federal tax, state tax varies | E-2, L-1, O-1 Visas |
| Hong Kong | 100% ownership, fast 1–2 day setup | 8.25–16.5% profits tax | Entrepreneur Visa, TTPS |
FAQS (Frequently Asked Questions)
What is the best country to start a business in 2025?
The UAE is one of the best countries and ranks #1 in the Global Entrepreneurship Monitor 2024/25, offering tax-free personal income, 100% foreign ownership, and 47 free zones. Singapore and Ireland also score high for digital ease and global reach.
What is the cheapest country to start a business in?
The UK and Estonia are among the cheapest—UK registration costs just £12 and Estonia offers online setup for €265. Both allow foreigners to incorporate with minimal capital.
Which country is best to open a business as a foreigner?
The UAE, Singapore, and Estonia top the list with 100% foreign ownership, no local sponsor needed (in most cases), and remote-friendly systems. All three offer flexible residency and startup support.
Which country has the most opportunities for business?
The UAE offers regional access to Africa, Asia, and Europe, with booming sectors like logistics, tech, and real estate. The USA, UK, and Germany also offer rich innovation ecosystems.
Where is the easiest place to start a business?
Singapore and the UAE both allow fast online registration with low red tape. Estonia’s e-Residency program lets foreigners run an EU company remotely without being physically present.
Can a foreigner start a business in the UK?
Yes, any foreign national can set up a UK Limited Company with a virtual UK address. No residency or citizenship is required, and the entire process can be completed online.
What is the cheapest country to register a company in Europe?
Estonia is the cheapest for foreigners (€265 online via e-Business Register), followed by the UK (£12 via Companies House). Ireland and Germany are more expensive and often require legal representation.
Where is the best place to incorporate?
The UAE is ideal for international entrepreneurs due to full ownership, free zones, and zero income tax. Singapore and Canada also offer strong legal systems and startup-friendly policies.
