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There is a question for every growing business or startup: in what country to register a company to make it convenient and profitable? Let’s have a look at factors to consider before starting your business, as well as favorable jurisdictions.
What defines a country as the best in the category of business registration? Of course, such a criterion is very subjective. But we propose to outline those that can affect the average business.
- Affordability. This category can include the total cost of starting a company, the taxes, and the cost of maintenance.
- Opportunities. Companies registered in reputable jurisdictions are more expensive. But they allow opening corporate bank accounts online faster, more cost-effective, and easier. Also, this means spending less time on money transfers and attracting more clients.
- Licensing. In fintech, a lot of business activities demand different licenses. For example, virtual assets (cryptocurrencies) are being regulated in some way globally. So jurisdictions that make it easier to get such a license will have a greater advantage to open a business.
Jurisdictions and their differences
Among the most popular jurisdictions to start a business right now are the following:
A time-proven and reputable jurisdiction with various businesses working for a long time.
The UK is famous for relatively low tax rates, easy company management, and ease of doing business. Opening a bank account for a UK company will not be a problem. During the registration, the state checks all details according to the legislation. Later a company can open an account in a traditional bank or other financial institution.
But, with the UK company, it is easier to find good counterparties and interact with them. The developed legislative base and time-proven stable economy of the country boost business.
Firms related to IT, marketing, cybersports, and others are registered in the UK.
Hong Kong is an important economic and geopolitical part of China. It has a beneficial location and an autonomous status as a territorial unit. This has allowed it to pursue a separate and successful economic policy. This was the root cause of the great popularity of this jurisdiction in the market, but not the only one.
Register a company in Hong Kong is a great way for your business to enter the Asian market, and here’s why.
Taxes – if a company has no business operations in Hong Kong (and no domestic income), then the tax is 0%. This is a great opportunity for startups as well as companies that are expanding to save well.
Reputation – Hong Kong is regarded as one of the best countries to register a business. According to Forbes Business, Hong Kong ranks 3rd in the world rank of the attractiveness of business registration. So the jurisdiction has a very good prestige among business customers, banks and counterparties.
Hong Kong is famous for IT businesses, marketing, advertising, cybersports, and other activities.
The country has shown the greatest economic development in Europe in recent times. The annual GDP growth rate is impressive. Not surprisingly, economic development programs appear, including through the support of foreign capital, making it an attractive prospect for opening a company in Poland.
Today Poland is attractive for businesses related to virtual assets seeking a European presence. After the introduction of “crypto-authorization” in the legal system the country is evolving as a crypto-hub.
What does the Polish crypto license offer? The ability to conduct activities related to cryptocurrency exchange (i.e., fiat currencies exchange to crypto and vice versa, custodial accounts etc). In the nutshell, this license allows the opening of a cryptocurrency exchanger, and Poland will be a great option for such a business. You could read more about Polish crypto licenses in our blog.
Company formation in Cyprus is highly advantageous due to its membership in the European Union and its reputation as a jurisdiction for starting businesses.
The country offers a good rate of corporate tax – only 12.5%. The same applies to the minimum statutory capital, which is 1000 euros. Compared to other EU states, this is a big advantage, especially for new businesses.
Cyprus has an excellent reputation among European banks. This makes corporate account opening cost-effective and fast.
This country offers a beneficial tax regime, ease of doing business, and reputability.
This jurisdiction attracts various businesses because of its good reputation in Europe. The main feature is transparent legislation and easy business registration. This allows you to think through all the steps and timing of opening a business and starting a business.
But these companies cannot be regarded as the most favorable, compared to Cypriot and Polish. But, despite this, there are other considerable advantages.
Estonian legal entities can get licenses for virtual assets activities, as well as other business licenses. It is important to understand that licenses issued in the territory of the EU rate high. Such companies will have much more opportunities than their competitors.
Find more about registering a company, obtaining licenses, or opening bank accounts on our website or at a consultation.
To sum up, we can say you should choose the country of registration of your business should carefully. Seek for professional advice and contact a specialist to find the best option for your case.
Every jurisdiction has pros and cons. But in the end, the best will be the one that combines the factors that matter the most to you.