Where to start a company in 2022
Yur. business support. Where is the best place to open a company in 2022: Europe, Asia, offshore
The opening of foreign companies is always accompanied by the question of choosing a suitable jurisdiction. Some businessmen gravitate towards the EU market, while others look towards the East. Individual preference is not the best solution. The best option is to learn about the characteristics of each region in order to have a real picture of the benefits of registration.
Pros and cons of Europe
The European Union is traditionally considered a “center of gravity” for all entrepreneurs from the CIS and neighboring countries. Undoubtedly, the key reason for this popularity is the historical and cultural proximity of the regions. But the EU jurisdiction also boasts business benefits. Specific Strengths:
- developed rule of law. Predictability of laws and observance of the rights of commercial organizations;
- extensive selection of countries. You can open a company in Germany, Bulgaria or any other country with its own specific market:
- huge audience. There is always a demand for quality products and services in Europe;
- world prestige. A company registered in the European region does not raise any unnecessary questions from customers, partners or supervisory authorities;
- advanced technology and equipment. The business will be able to use the best tools;
- political stability. Predictable actions of the authorities;
- the best banks in the world. Keeping an account with a European banking institution is always prestigious.
European jurisdiction (including the UK) is considered to be the best option for starting a business in a developed and stable environment. It has everything you need for the company to securely establish itself on the market. It should be noted, however, that Europe is suitable for both start-ups and large businesses that are thinking about migration.
The EU has many advantages, but there are also nuances that should not be forgotten. The following disadvantages can be noted:
- extremely high requirements from the legislator. Starting a business in Europe is a task that takes more than one day;
- constant checks by supervisory authorities;
- high level of competition;
- demanding audience.
European jurisdiction provides high protection of the rights of the enterprise, but also requires appropriate behavior. For any defect, you can get a solid fine. Business responsibility is high here.
Do not discount the high competition, coupled with demanding customers. Every industry in the EU already has its giants and market leaders – businesses will need to position their activities correctly. Selling or serving here in a hurry will not work.
The duration of registration deserves special attention. Registration authorities carefully check the documentation and compliance of the candidate with all conditions. Without legal support, the opening procedure can take more than one month. At the same time, together with representatives of Lawrange, you can open a company in Europe as soon as possible.
Advantages and disadvantages of Asia
The Asian region is extremely heterogeneous, but its key feature is colossal development potential. If an entrepreneur plans to start his own business from scratch and reach tangible heights, then it is the East that opens up the greatest number of opportunities for him. Specific benefits of starting a business in Asia:
- the largest market in the world. There are always clients from whom, if they work correctly, there will be no end;
- quick registration. Asian countries are eager to host foreign entrepreneurs;
- low competition in many industries. Some areas of the economy are just gaining momentum (especially in Southeast Asia);
- undemanding buyers. You can experiment with products;
- loyal laws. There are many tax havens.
Some Asian countries, for example, Malaysia, even establish additional incentives to attract foreign investors and business (this is the scenario that Singapore once flourished under). Eastern jurisdictions provide a huge scope for commerce, and this applies not only to the number of potential clients. Some industries are in their infancy, and any well-implemented startup can easily become a market leader.
There are, however, disadvantages:
- reputation in the global market. If you start from Asia, you will have to prove your own reliability and image;
- specific mentality of the local population. Unlike Europeans, Asian consumers have slightly different preferences;
- unique cultural characteristics. Asia has its own holidays, events and business requirements that will take some getting used to;
- few prestigious banks;
- undeveloped rule of law. Despite the loyalty to investors and foreign companies, it is easy to stumble upon a sudden new law with stringent requirements.
As such, Asia is ideal for businesses looking to make a name for themselves from scratch and win the hearts of their audiences. There is unparalleled growth potential here, which, however, must be exploited. Together with the lawyers of Lawrange, you can get detailed information about the specifics of business registration in any country in Asia.
When does it make sense to open a business offshore?
In addition to Europe and Asia, many entrepreneurs are also considering offshore as an alternative – special territories where tax breaks and benefits are in effect. The undoubted advantages of “free harbors”:
- minimum taxes;
- you can open casinos, bookmakers and other organizations that are usually closely monitored;
- minimum questions to business from government bodies;
- loyal registration requirements.
These benefits guarantee a painless entry point for startups and online businesses. If you are planning to open a casino, bookmaker’s office or a company operating on the Internet, then offshore companies may be the ideal option. There is no state control – there is also no need to constantly draw up reports. In some offshores, you don’t even need to hire a resident director or pay salaries to employees – you can easily open a virtual office.
Tax havens also have disadvantages:
- low reputation in the world market. Partners and contractors often have additional questions about cooperation;
- tax incentives, as a rule, apply only to foreign economic activity. If the company plans to trade within the offshore, then concessions will not apply;
- unpredictable legislation. Some offshore companies are already tightening control over commerce.
Thus, offshore company registration is ideal for either “shadow” businesses or startups. Large companies that value their reputation tend to choose classic jurisdictions.
Regardless of where you are planning to open your business, it is recommended that you seek legal advice from Lawrange. Our representatives know the specifics of each region, are ready to provide detailed advice and help with registration as soon as possible.