The easiest countries to conduct business are usually not the global giants like India, Brazil or China according to the World Bank rankings. These countries do not even make it to the top 10 in ease of starting a business. The report ranks countries based on 10 key factors that contribute to effective business dealings. The most basic criteria include ease of starting a business, ease of obtaining construction permits, access to electrical utilities, ease of registering property, availability of credit, protection for minority investors, tax rates and collection methods, capacity for trade to occur across borders, and ease of enforcing contracts and declaring insolvency.
Let’s take a look at the top countries where it’s easiest to start and execute a business along with why they are at the top of the list;
Sweden is known for its high standards of living along with one of the worlds most skilled labor forces. Apart from this, Sweden has a strong infrastructure and well-developed social programs that make it not just a good business hub but a social hub as well.
The Eurasian nation of Georgia is one of the world’s best places to start a business. For years, Georgia has been benefiting from an emerging economy and one of the reasons behind this is the fact that it takes just a couple of days to register a new business there. Moreover, it only costs $40 US dollars to get started.
Norway has successfully combined a state-of-the-art technology sector along with an energetic workforce that has a strong safety net of social programs to its citizens making it a force to be reckoned with in the global business arena.
7. United Kingdom
The U.K. currently ranks 7th in ease of commencing a business. According to the World Bank report, the low costs associated with setting up a business there, combined with increased levels of entrepreneurial optimism, have contributed to the high ranking.
6. United States
Although the U.S corporate tax rates are much steeper than most, the country is able to make up for it by having some of the lowest operating costs. This means much lower costs for supplies, offices, and logistics among other things. Even with the US-China trade war, the economy is still holding strong for the time being.
5. Hong Kong
Starting a business in Hong Kong is becoming difficult in current times due to huge registration fees but it is known for having one of the best protection services for minority investors. Hong Kong also received a high ranking due to the simplicity of obtaining construction permits there and conducting trade across the border.
Korea is the fourth best location to start a business mainly due to electricity, cross border trade, and enforcing contracts along with the worlds fastest internet.
The World Bank report stated that Denmark’s effective digitization process is one of the main factors contributing to its third-place rank. Trading across the border in Denmark is convenient, as it has a ‘free border’ and documentary compliance on exports and imports. According to the same report, the Danish government is the front runner in enforcing regulations that facilitate market interaction without hindering the private sector.
Singapore is known for being the most business friendly and secure environment in the whole world. Commercial disputes are solved in a maximum of 150 days which is the shortest in the world.
1. New Zealand
In New Zealand, starting a business only takes a few hours of an entrepreneur’s due to a simple online procedure. In the past few decades, New Zealand has been transformed from an agrarian economy, largely dependent upon the British market, into a world-leader among industrialized, free-market economies. Ever since the country emerged from a recession in 2009, it has achieved a 2-3% annual growth rate in the time since.