Opening a company in a country that is not the investor’s home country is no longer a difficult goal as the openness of most governments towards foreign investors has increased substantially in the last few years. This is why opening a business abroad can now have more benefits than setting up a company in one’s home state.

Starting a company in Luxembourg is, for example, the goal of many foreign entrepreneurs thanks to the developed banking sector which is unique at a European level. However, there are also other countries in which enterprisers can open companies and which do not involve their states of origin.

Let’s see below why it is worth opening a business abroad rather than in one’s home state.

Lower business start-up costs

One of the first and most important aspects of starting a business is the start-up cost, which in some cases can be cheaper abroad even if the investor must move there. The fees and taxes related to the registration of the company, the licensing fees and the capital to get started can be significantly lower when compared to one’s home country. If we take the example of Romania which is one of the countries going through important economic changes and in which the government has cut various fees related to business registration, a foreign entrepreneur might find it as being a very cheap country to open a company in. Nevertheless, it is advisable to ask for legal support from a Romanian law firm before making any move.

Low taxes or no taxes

There are many countries which provide for very low corporate taxes or no taxes at all. The latter applies in wealthy Middle Eastern countries, such as the UAE and Qatar, however, those interested in opening a business in Qatar should pay attention to other facts such as full foreign ownership which is permitted under special circumstances.

Incentives for foreign investors

One of the strongest reasons for starting a company abroad remains the incentives granted by governments. These incentives have started spreading in most countries in the world as governments followed the example of other countries which managed to earn important amounts of money to the economy by granting such incentives. These usually take the form of tax breaks, allowances and deductions.

The good infrastructure

In the past few years, the infrastructure has become one of the most important reasons for which foreign entrepreneurs decide to open companies abroad. Indeed, a good infrastructure which provides for faster connections to the rest of the world can be a good stimulant for setting up a business in another country than one’s own home state.

The market, taxation, fiscal stimulants and the infrastructure are just a few of the reasons which can help an investor to start a business in another jurisdiction. Most of the times, however, choosing to open a company abroad is usually a subjective decision based on research and studies on the chosen country.