How to choose the right jurisdiction for opening a business

The world is full of business opportunities which make it hard to decide on the best jurisdiction to set up a company in.

 (photo credit: INGIMAGE)
(photo credit: INGIMAGE)
The world is full of business opportunities which make it hard to decide on the best jurisdiction to set up a company in. Each investor has his or her preferences and the choice of a country to open a business in is often subjective. However, there are situations in which more than one state meets the requirements of businesspersons.

Europe and Asia are two preferred destinations of investors who must decide where to open companies. Europe is preferred because of the unity provided by the European Union’s regulations, while Asia is often chosen because of the cheaper workforce. Even so, how does one decide where to start a business? Let’s see some of the key attributes a jurisdiction should meet in order to be the proper choice for opening a business.

Openness towards foreign investments

Considering the easiness of traveling nowadays, starting a business in a foreign country is no longer an issue for most entrepreneurs. However, the chosen country should meet an essential requirement: be open towards foreign investors. From this point of view, in Europe we have the Netherlands which is one of the most appreciated jurisdictions in terms of foreign investments. Starting a business in the Netherlands as a foreign entrepreneur will require no additional steps than for local ones. Moreover, overseas businesspersons can obtain more tax benefits than locals.


Taxation is of great importance when choosing a country to open a business in. Here, Asian countries could have a slightly higher advantage because of the lower corporate taxes. For example, the creation of a business in Singapore will attract a 0% corporate tax for startups for the first 100,000 SGD chargeable income.

Investment incentives

A good jurisdiction for starting a business is one that offers investment incentives. It is true that most countries, if not all of them, have put in place various investment schemes. However, an entrepreneur should usually choose the one that matches his or her business line. Also, there are countries that offer not one but several investment incentives that could fit to a company which is why such jurisdictions should not be ignored even if they are located further than first intended.

Choosing the right country for starting a business is not that difficult if the future business owner does his or her homework. Most of the time, making a list with the desired attributes and facilities sought could help in making a quick decision.