In this article, we will take a look at the 25 most business friendly countries in the world. If you want to skip our detailed analysis, you can go directly to the 5 Most Business Friendly Countries in the World.
Globalization demands countries to be more business friendly. Countries with business friendly policies foster an environment of economic growth and rapid international trade. On October 6, Reuters reported an analysis of the global trade forecasts by the World Trade Organization. The World Trade Organization slashed the global trade growth forecast for 2023 to 0.8%, from 1.7% estimated in April, followed by a global trade growth forecast of 3.3% for 2024. As per the WTO, the iron and steel industry, the office and telecom equipment industry, and the textile industry experienced massive declines in sales. The report suggests that the cause of the slowdown is unknown. Possible reasons are geopolitical tensions or the general economic downturn.
Emerging Names in International Trade
However, the economic downturn does not suggest that the future of business is bleak. Emerging economies like the ASEAN and BRICS are striving to become prominent hubs for investment by establishing strategic international partnerships. On June 21, Reuters reported that JPMorgan Chase & Co. (NYSE:JPM), the commercial banking giant, expanded into Singapore and Israel. The move was exercised to reach and support small to medium-sized businesses.
Additionally, on September 6, Reuters reported that Canada is expected to finalize a free trade agreement with the Association of Southeast Asian Nations (ASEAN). The free trade agreement was established right after Canada launched a strategic partnership with the ASEAN countries. Developed countries invest in these economies because they offer considerable opportunities for growth in the long run. Therefore, emerging economies are establishing friendlier policies, attracting significant investment from abroad.
According to the Asian Development Bank, South East Asia reported a GDP growth rate of 4.6% in July 2023, outweighing GDP growth in developed economies like the United States. A positive economic outlook, rapid digital development, and a huge young population make these regions highly attractive to investors. You can also check out some of the fastest growing cities in the world economically.
Notable Names in APAC
A significant name in the ASEAN countries is Singapore. Some of the notable names driving growth in Singapore include DBS Group Holdings Ltd (OTC:DBSDY), Sea Limited (NYSE:SE), and Grab Holdings Limited (NASDAQ:GRAB).
DBS Group Holdings Ltd (OTC:DBSDY) is a leading banking and financial services multinational in Singapore. The company drives significant growth for the country and operates in 18 markets. On October 6, DBS Group Holdings Ltd (OTC:DBSDY) reported on its new digital account, digiVault. DigiVault was launched to counter online scams and frauds. The digital account allows users to save their money in an account digitally. However, the digital account does not allow people to withdraw or transfer cash online. DigiVault is expected to launch by the end of November 2023.
Sea Limited (NYSE:SE) is a technology conglomerate based in Singapore. Sea Limited (NYSE:SE) offers services in three primary domains: digital entertainment, e-commerce, and digital financial services. On August 15, Sea Limited (NYSE:SE) reported earnings for the fiscal second quarter 2023. The company reported earnings per share of 0.79 and outperformed EPS estimates by 0.08. The company reported a revenue of $3.1 billion, up 5.2% year over year.
Grab Holdings Limited (NASDAQ:GRAB) is one of the largest technology companies in Singapore. On September 28, Evercore ISI analyst Mark Mahaney maintained an Outperform rating on Grab Holdings Limited (NASDAQ:GRAB) and raised his price target on the stock to $7 from $5. Over the past 12 months, 13 Wall Street analysts have recommended to Buy the stock. Grab Holdings Limited (NASDAQ:GRAB) has an average price target of $4.73 and a high forecast of $7.
Significant economic development comes from business friendly policies. These policies nurture a positive business environment, enabling countries and multinationals to invest. Business friendly policies also allow locals to establish small businesses with ease. You can check out some of the most successful small business ideas. With that, let's look at the 25 most business friendly countries in the world.
25 Most Business Friendly Countries in the World
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Our Methodology
For our title, 25 most business friendly countries in the world, we consulted four sources for our data. We compiled the top 50 countries using our primary sources, The Heritage's Economic Freedom Index and the World Bank's Ease of Doing Business Index. From the initial data pool, we extracted the common countries, amounting to 30 names in the list. To make our analysis more comprehensive, we incorporated net foreign direct investments in dollar value from The World Bank and the corporate tax rates from Taxfoundation, for the top 30 countries.
Foreign direct investment offers a robust perspective to our analysis. A high dollar value of the FDI suggests that businesses are highly confident investing in a country, which appropriately reflects how business friendly a country is. We sorted the FDI data in descending order of the dollar value and the corporate tax rate in ascending order, assigning rankings based on the country's position in the list. We took an average across the four rankings to develop our "Insider Monkey Score." The list is in descending order of the insider monkey score.
It is to be noted that some countries have a negative net FDI. A negative net FDI suggests that the country had greater foreign direct investment (FDI) outflows than inflows. Rapidly developing economies sometimes have a negative FDI reflecting their international trade activity. Nevertheless, our list includes countries actively involved in international trade with a growing business environment.
Moreover, the FDI values for Austria and Georgia were obtained from 2021, since this represented the latest data available for the two countries.
25 Most Business Friendly Countries in the World
25. Malaysia
Economic Freedom Index Ranking: 21
Ease of Doing Business Ranking: 41
Corporate Tax Rate Ranking: 21
Net Foreign Direct Investment Ranking: 26
Insider Monkey Score: 25.5
According to our methodology, Malaysia is among the most business friendly countries in the world. The country reported net foreign direct investments of negative $3.9 billion and had a corporate tax rate of 24% in 2022. A negative FDI dollar value suggests that the country's FDI outflows outweighed the FDI inflows.
DBS Group Holdings Ltd (OTC:DBSDY), Sea Limited (NYSE:SE), and Grab Holdings Limited (NASDAQ:GRAB) are some prominent names driving growth in emerging economies like Singapore.
24. Czech Republic
Economic Freedom Index Ranking: 21
Ease of Doing Business Ranking: 41
Corporate Tax Rate Ranking: 7
Net Foreign Direct Investment Ranking: 27
Insider Monkey Score: 24
The Czech Republic is among the most business friendly countries in the world with a cumulated ranking of 24. The country reported net foreign direct investments of negative $7.3 billion in 2022 with a corporate tax rate of 19%. The negative FDI figure suggests that the Czech Republic had a higher number of FDI outflows as compared to inflows.
23. Japan
Economic Freedom Index Ranking: 29
Ease of Doing Business Ranking: 32
Corporate Tax Rate Ranking: 29
Net Foreign Direct Investment Ranking: 2
Insider Monkey Score: 23
Japan ranks 23rd among the most business friendly countries in the world. The country reported net foreign direct investments of $127.9 billion in 2022 along with a corporate tax rate of 29.74% in 2022.
22. Austria
Economic Freedom Index Ranking: 27
Ease of Doing Business Ranking: 22
Corporate Tax Rate Ranking: 22
Net Foreign Direct Investment Ranking: 13
Insider Monkey Score: 21
According to our methodology, Austria is among the most business friendly countries in the world. Austria reported net foreign direct investments of $8.6 billion in 2021 with a corporate tax rate of 25% for the same year.
21. Switzerland
Economic Freedom Index Ranking: 2
Ease of Doing Business Ranking: 36
Corporate Tax Rate Ranking: 11
Net Foreign Direct Investment Ranking: 31
Insider Monkey Score: 20
With a corporate tax rate of 19.7% in 2022, Switzerland ranks among the most business friendly countries in the world. The country also reported net foreign direct investments of negative $19.3 billion in 2022. The negative FDI figure suggests that Switzerland had a higher number of FDI outflows as compared to inflows.
20. Netherlands
Economic Freedom Index Ranking: 8
Ease of Doing Business Ranking: 42
Corporate Tax Rate Ranking: 24
Net Foreign Direct Investment Ranking: 4
Insider Monkey Score: 19.5
The Netherlands is among the most business friendly countries in the world. The country had a corporate tax rate of 25.8% and reported net foreign direct investments of $85.9 billion in 2022.
19. Iceland
Economic Freedom Index Ranking: 19
Ease of Doing Business Ranking: 26
Corporate Tax Rate Ranking: 14
Net Foreign Direct Investment Ranking: 18
Insider Monkey Score: 19.25
Iceland is among the most business friendly countries with a corporate tax rate of 20% as of 2022. The country also reported net foreign direct investments of negative $818.8 million in 2022. A negative FDI dollar value suggests that the country's FDI outflows outweighed the FDI inflows.
18. Latvia
Economic Freedom Index Ranking: 17
Ease of Doing Business Ranking: 19
Corporate Tax Rate Ranking: 15
Net Foreign Direct Investment Ranking: 23
Insider Monkey Score: 18.5
Latvia is one of the most business friendly countries in the world. The country reported net foreign direct investments of negative $1.4 billion in 2022 along with a corporate tax rate of 20% during the same year. The negative FDI figure suggests that Latvia had a higher number of FDI outflows as compared to FDI inflows.
17. Canada
Economic Freedom Index Ranking: 14
Ease of Doing Business Ranking: 23
Corporate Tax Rate Ranking: 26
Net Foreign Direct Investment Ranking: 10
Insider Monkey Score: 18.25
Canada is not only an expat friendly country, but it is also among the most business friendly countries in the world. Canada reported net foreign direct investments of $27.1 billion in 2022 and had a corporate tax rate of 26.2%.
16. Germany
Economic Freedom Index Ranking: 15
Ease of Doing Business Ranking: 22
Corporate Tax Rate Ranking: 30
Net Foreign Direct Investment Ranking: 1
Insider Monkey Score: 17
According to our methodology, Germany is one of the most business friendly countries in the world. The country had a corporate tax rate of 29.8% in 2022 and reported net foreign direct investments of $131.5 billion during the same year.
15. Australia
Economic Freedom Index Ranking: 13
Ease of Doing Business Ranking: 14
Corporate Tax Rate Ranking: 31
Net Foreign Direct Investment Ranking: 6
Insider Monkey Score: 16
Australia is among the most business friendly countries in the world. The country reported net foreign direct investments of $56.2 billion in 2022. The country had a corporate tax rate of 30% during the same year.
14. Georgia
Economic Freedom Index Ranking: 35
Ease of Doing Business Ranking: 7
Corporate Tax Rate Ranking: 2
Net Foreign Direct Investment Ranking: 19
Insider Monkey Score: 15.75
Georgia is one of the most business friendly countries in the world with a corporate tax rate of 15%. The country also reported net foreign direct investments of negative $919.8 million in 2021. A negative FDI indicates that the country reported higher FDI outflows compared to FDI inflows.
13. Mauritius
Economic Freedom Index Ranking: 25
Ease of Doing Business Ranking: 13
Corporate Tax Rate Ranking: 4
Net Foreign Direct Investment Ranking: 21
Insider Monkey Score: 15.75
According to our methodology, Mauritius ranks among the most business friendly countries in the world. The country reported a corporate tax rate of 15% and a net foreign direct investment of negative $1.1 billion in 2022. A negative FDI suggests that a country's investment in foreign countries outweighed the investment from abroad in Mauritius.
12. United States
Economic Freedom Index Ranking: 26
Ease of Doing Business Ranking: 6
Corporate Tax Rate Ranking: 25
Net Foreign Direct Investment Ranking: 5
Insider Monkey Score: 15.5
The United States is one of the most business friendly countries in the world. The United States reported net foreign direct investments of $84.3 billion in 2022 along with a corporate tax rate of 25.8% for the same year.
11. New Zealand
Economic Freedom Index Ranking: 5
Ease of Doing Business Ranking: 1
Corporate Tax Rate Ranking: 28
Net Foreign Direct Investment ranking: 27
Insider Monkey Score: 15.25
New Zealand is among the most business friendly countries in the world with a corporate tax rate of 28% as of 2022. The country also reported a net foreign direct investment of negative $6.9 billion in 2022. A negative FDI suggests that the investments made by New Zealand in other countries were greater than the inflows.
10. Lithuania
Economic Freedom Index Ranking: 20
Ease of Doing Business Ranking: 11
Corporate Tax Rate Ranking: 3
Net Foreign Direct Investment ranking: 24
Insider Monkey Score: 14.5
With a corporate tax rate of 15% and a net foreign direct investment of negative $1.8 billion in 2022, Lithuania ranks 10th among the most business friendly countries in the world. The negative FDI figure suggests that Lithuania had a higher number of FDI outflows as compared to FDI inflows.
9. Finland
Economic Freedom Index Ranking: 11
Ease of Doing Business Ranking: 20
Corporate Tax Rate Ranking: 13
Net Foreign Direct Investment Ranking: 14
Insider Monkey Score: 14.5
With a corporate tax rate of 20% as of 2022, Finland ranks fourth among the most business friendly countries in the world. Finland reported net foreign direct investments worth $6 billion in 2022.
8. South Korea
Economic Freedom Index Ranking: 16
Ease of Doing Business Ranking: 5
Corporate Tax Rate Ranking: 27
Net Foreign Direct Investment Ranking: 7
Insider Monkey Score: 13.75
South Korea is one of the most business friendly countries in the world. South Korea had a corporate tax rate of 27.5% and reported net foreign direct investments of $48.4 billion in 2022.
7. Norway
Economic Freedom Index Ranking: 12
Ease of Doing Business Ranking: 9
Corporate Tax Rate Ranking: 19
Net Foreign Direct Investment Ranking: 12
Insider Monkey Score: 13
Norway is among the most business friendly countries. The country had a corporate tax rate of 22% as of 2022 along with a net foreign direct investment of $10.3 billion during the same year.
6. Estonia
Economic Freedom Index Ranking: 6
Ease of Doing Business Ranking: 18
Corporate Tax Rate Ranking: 12
Net Foreign Direct Investment Ranking: 16
Insider Monkey Score: 13
Estonia, one of the world's largest tech hubs, also ranks among the most business friendly countries with a net foreign direct investment of almost $523 million and corporate tax rate of 20% in 2022.
DBS Group Holdings Ltd (OTC:DBSDY), Sea Limited (NYSE:SE), and Grab Holdings Limited (NASDAQ:GRAB) are prominent companies operating in a free business environment.
