Deciding for a specific country to do business in is in many cases a challenging situation for entrepreneurs and their associates. The tax structure, the business climate and culture, the easiness of establishing a company in a country are only a few of the matters considered by investors looking to set up their firm. For example, a foreigner can choose UAE and especially Dubai for a wide range of tax benefits mostly in the established free zones.
Looking for countries with low corporate taxes
Probably one of the most important aspects when looking for a country to start a company is related to the taxation regime and particularly to the taxes, a company needs to pay. The corporate income tax is in the attention of investors at the time they are interested in choosing a country for business. For instance, in Seychelles, the corporate income tax ranges between 0% and 33% and there are varied investment incentives plus tax benefits for offshore companies.
A convenient minimum share capital – are the investors satisfied?
In some cases, a minimum share capital for opening a business can make an investor decide for a specific country to do business in. As an example, the minimum share capital for a limited liability company in Bulgaria is 2 BGN or 1 Euro and this is the type of business structure which can be established by at least one shareholder. The low costs for company formation in countries such as Netherlands, besides the minimum share capital, are in the attention of investors who would rather direct their budget to future investments in the firm.
Opening a company in an easy manner
There are many countries that developed the one-stop-shop for company incorporation, creating an easy path for foreign investors looking to incorporate businesses. The local authorities dealing with the company registration have all the business divisions in one place, providing complete support in matters of procedures for entrepreneurs from abroad. Verifying and reserving the business name, submitting the Articles of Association (the company’s main documents) and registering for tax purposes and social contributions are the main steps in company formation which can be handled in just one day with the entitled authorities in certain countries.
As a short conclusion, choosing the country for doing business will depend on a series of factors like the tax structure, the fast way in which a company can be registered, the company form (branches, limited liability companies, subsidiaries etc.), and the investment benefits an entrepreneur can receive.