The Cheapest Country in the World to Start a Business
After almost a year of working from home, I imagine a lot of us would pretty much give our right arm right now to go and pitch up on a beach with a laptop or pretty much to just go anywhere other than home! Personally, I’d settle for a coffee shop. But I digress…
If lockdown has led you to considering your long term remote working prospects and you’re quite taken with the idea of upping sticks and working anywhere you like, then recent research from Rovva may just help your decision making.
Rovva compiled all of the company formation costs across the world to find out where the cheapest country to start a business is. Costs of company formations vary from absolutely nothing in up to over £9000!
Free Company Formations in 2 Countries
It’s completely free to establish a company in both Rwanda and Slovenia!
How does the UK Fare?
In the UK, the current cost to form a limited company is just £12. Here’s the lowest cost countries:
Most Expensive Countries to Form a Company
At the other end of the spectrum, setting up a business in Venezuela will set you back over £9,000 and in the UAE over £5,000. Here are the top 10 most expensive companies in the world for company formations.
One thing the Rovva research didn’t look at but is worth a mention is corporate tax rates in each of these countries – as it’s very feasible that by establishing a profitable business in some territories you could make significant savings on tax!
In the UAE, for example (at the time of writing) corporate taxes are only levied on foreign banks and on oil companies at the time of writing.
That said, in Venezuela, there’s a 34% corporate tax rate on top of that rather high formation cost!
Other Costs Associated with Forming a Business (And Running One)
Of course, company formation isn’t the only cost associated with starting and running a business. As well as things like corporation tax, staffing costs, office/warehouse space costs and a multitude of other overheads, don’t forget to account for those unexpected expenses too.
But it’s certainly quite fascinating to see the vast discrepancies in simple formation costs around the world.