Starting a new business or expanding a new business overseas can be a thrilling and fulfilling endeavor, but it also has its challenges, especially choosing the correct country. There are a number of countries that offer an enabling environment for businesses, some of which make particular efforts to attract Indian entrepreneurs. We’ll look at five of the best countries to set up a business for Indians on this blog.
1. United States of America (USA)
The USA has the largest economy in the world and provides a plethora of benefits for business owners, including as access to a sizable market and a broad talent pool. It also has a strong legal framework, a welcoming startup ecosystem, and an entrepreneurial culture that encourages risk-taking and innovation.
Furthermore, the USA’s extensive network of investors and venture capitalists is one of its greatest advantages.
It is home to a large number of incubators and accelerators that can assist entrepreneurs in growing their enterprises. The VC AUM has shown a growing trend over the years.
Data source: NVCA 2023 Yearbook; Data provided by PitchBook
2. Canada
Canada is another attractive destination for businesses. It has a stable political environment, a favorable tax system and is home to a highly skilled workforce. Additionally, it provides access to the entire North American market.
The country has a long history of welcoming immigrants from around the world. In 2021, India is the country of birth of close to one in five recent immigrants (18.6%).
The Government is continuing these efforts and has released the Immigration Levels Plan on November 01, 2022 with targets till the year 2025 for Permanent Residents (PRs).
Data source: News release on Immigration plan dated Nov 1, 2022 (Govt. of Canada)
3. United Kingdom (UK)
The UK is a global hub for finance and technology. In terms of company incorporation and related aspects, it has one of the swiftest and simplest process and relatively easy to fulfill requirements.
UK is located centrally making it an excellent gateway to Europe, which is one of the world’s largest markets.
UK is ranked 4th in the ODIs made between Aug’22-Feb’23 for companies with less than USD 10,000 as equity. This reflects that UK is still an attractive destination for investment.
4. United Arab Emirates (UAE):
The UAE is a rapidly growing economy that offers a range of incentives and benefits to entrepreneurs. It has a low tax environment and is strategically located at the crossroads of Europe, Asia, and Africa.
UAE offers investors options of 37 free zones in which 100% foreign ownership is allowed amongst other advantages. These zones have highly efficient infrastructure facilitating smooth workflows.
The country promotes tolerance, mutual respect, multi-culturalism, and diversity, and values freedom of belief and religion. It is home to nearly 200 nationalities, and takes care of the welfare of all its inhabitants.
Data source: The United Arab Emirates’ Government portal
5. Singapore
Singapore is ranked 2nd in the Ease of Doing Business rankings by the World Bank. It is an ideal location for companies looking to expand into the Asian market especially in South East Asia.
It has one of the world’s biggest financial centres and in terms of the tonnage handled; it has one of the world’s busiest ports.
Companies enjoy a partial tax exemption. 75% of first S$10,000 and 50% of the next S$190,000 of their chargeable income is exempt from tax. New Start-up companies also have tax exemptions for the first 3 YAs.
(*Normal chargeable income – income to be taxed at the prevailing CIT rate of 17%)
Data source: IRAS
To sum up, there are several countries that are worth considering when establishing a business outside of India. These countries provide a well-established business environment, a skilled workforce, and a supportive startup ecosystem. By taking into account the factors that are crucial for your business, you can make a well-informed choice on the most suitable country to kickstart your business.
