The best countries to expand your business internationally in 2024
Expansion
Author
Laura Bohrer
Date published
26.01.2024
There are many different aspects business leaders and decision-makers need to take into account when preparing for international expansion. One of them is where to expand. With 195 different countries in the world, there are many destinations to choose from. But not all countries are suitable for expanding your business internationally.
What are the decisive factors when deciding where to expand? What are the best countries to expand your business internationally? Why should businesses go through the trouble of dealing with local employment and payroll regulations when setting up in a new market?
The benefits of international business expansion
International business expansion opens up a whole range of new opportunities for organizations. The benefits of expanding into new markets include:
New revenue sources,
Lower operational costs,
Increased diversity in the organization,
Sustainable growth opportunities,
Access to a new talent pool,
Foreign investment opportunities, and
Competitive advantages.
How to choose the best countries to expand your business internationally?
Choosing the best countries for business expansion can be a real challenge for businesses. There are many different aspects that need to be taken into account and questions to ask when deciding where to expand. This includes:
Corporate taxation,
Hiring and employment regulations,
Minimum wages and compensation standards,
Cultural differences,
Political stability,
Quality of life,
Country happiness index,
Gross domestic product (GDP),
Annual GDP growth rate,
Regulatory requirements of starting a new business,
Inflation rate,
Economic situation and growth potential,
Ease of doing business,
Employment rate,
Number of start-ups,
Local competitor landscape,
Labor productivity,
Availability of talent, and
Top 15 best countries to expand your business internationally
The first hurdle businesses need to overcome when preparing for global expansion is to decide where to expand. So, without further ado, what are the best countries for international business expansion?
1. United States
The United States is currently top of the list when it comes to the best countries to expand your business internationally. Reasons why the U.S. represent such a promising destination for international business expansion include the high number of start-ups, high labor productivity, and the short time required to set up and register a business.
Further advantages include the very good broadband speed and relatively low capital requirements when establishing a local legal entity.
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2. Singapore
Singapore persistently scores high with regard to its ease of doing business. But the business-friendly environment is not the only aspect that makes Singapore such a desirable location for international expansion. Other arguments in favor of expanding into Singapore are its political stability and the close proximity to other big Asian markets, such as Thailand, Malaysia, and Indonesia.
Another factor that makes the country popular with foreign investors are the low corporate taxes. All of this combined makes Singapore one of the most attractive destinations for international business expansion.
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3. Ireland
Ireland is one of the best countries in the world for expanding your business internationally. In fact, tech giants like Google, Facebook, Apple and Microsoft have all chosen Ireland for their European headquarters, and for good reason.
The annual GDP growth rate is among the highest in the world and compared to the rest of Europe, taxes imposed on corporations are quite low. Paired with the low cost of registering a business, there is a strong business case for expanding into Ireland.
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4. Denmark
There are multiple reasons why Denmark features in pretty much every ranking of the best countries to expand your business internationally. These reasons include high quality of life, low unemployment rates, talent availability, and moderate inflation. Also, Denmark is considered to be one of the most stable economies in the European Union.
Although wages are a lot higher than in other European countries, the low business start-up costs make Denmark an appealing destination for international expansion.
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5. Canada
With Canada, we find yet another North American jurisdiction on the list of the best countries to expand your business internationally. Canada is one of the world’s largest economies and has a highly educated workforce. The country’s constant economic growth and its close proximity to the United States are two additional factors to take into consideration.
Also, doing business in Canada is relatively easy when looking at aspects like starting a business, getting credit, and trading across borders. Another big advantage of setting up business in Canada is the high number of Free Trade Agreements (FTAs).
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6. Hungary
From starting a business to getting credit and trading across borders, doing business in Hungary is relatively easy. Thanks to the country’s low cost of living, hiring local employees is an attractive option that allows businesses to realize impressive savings on their employment costs.
The GDP growth rate is currently set at around 3.1%, which is relatively strong. Also, its strategic position between Western and Eastern Europe makes Hungary one of the most attractive foreign direct investment destinations in the region.
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7. Romania
Romania is the perfect location for international corporations that want to gain access to the lucrative markets of Western Europe without having to navigate complex regulatory landscapes and high corporate tax rates.
As a member of the European Union, the country is the perfect gateway to both Western and Eastern Europe. Low costs of doing business, a favorable tax environment, and business-friendly rules for cross-border trading further add to the list of attributes that make Romania one of the best countries to expand your business internationally in 2024.
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8. Mexico
Mexico is on the way to becoming a first-class international hot spot for global business expansion. There are numerous reasons for this. First of all, the country boasts a high GDP that was estimated at USD 2.593 trillion at the end of 2023.
Second, the labor costs in Mexico are more than affordable and the cost of starting a business is very low. Third, the United States-Mexico-Canada Agreement (USMCA), which entered into force in 2020, has made things a lot simpler for businesses operating across these countries.
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9. Switzerland
Switzerland might not be the most obvious candidate in a ranking of the best countries to expand your business internationally, but there are, in fact, many aspects that make the small country an attractive destination for conducting business. The wealthy nation that is nestled into the beautiful panorama of the European alps boasts an impressive GDP which is estimated to be USD 637 billion for 2023.
A low unemployment rate, strong labor productivity stats, and a remarkable ease of doing business are further arguments in favor of expanding your business into Switzerland. The only drawbacks are the extremely high wages and the high cost of setting up a local legal entity.
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10. Sweden
Doing business in Sweden is relatively easy, and with a strong GDP and a highly skilled and competitive workforce, organizations will find the local conditions more than suitable for setting up shop here. Also, Sweden is regarded as one of the happiest countries in the world.
This means that businesses can count on finding happy employees who have a healthy work-life balance and reach high productivity levels. The only drawback is the country’s high cost of living which makes it mandatory for employers to offer high wages.
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11. New Zealand
New Zealand might be among the smallest nations on the list of best countries to expand your business internationally, but the country in the Southern Hemisphere regularly ranks in the top positions when it comes to the ease of doing business.
Despite its small population of roughly 4.8 million inhabitants, the country manages to secure impressive growth and a relatively high GDP. Also, there are no taxes for capital gains and the time needed to register a new business is the shortest in the world—in fact, it only takes half a day to complete the registration process.
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12. Hong Kong
In recent years, Hong Kong has put some considerable effort into improving its ease-of-doing-business score. For instance, it has eliminated certain regulatory requirements linked to setting up a business and made it easier for companies to get credit and pay taxes.
Other reasons why the special administrative region of China ranks among the best countries to expand your business internationally include its stable economy and its strong, competitive workforce.
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13. Spain
Good quality of life, decent labor productivity rates, and a good ranking in the World Happiness Report make Spain an attractive destination for setting up business and hiring employees. Another factor to consider is the country’s favorable location. Strategically located on the Iberian Peninsula, Spain offers access to both the European and the North African market.
A great number of long-standing trade relationships that reach as far as the Middle East and South America further add to the country’s attractiveness for international organizations. Also, there are a lot of incentives from the government including low tax rates and potential investments for foreign businesses.
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14. United Kingdom
Doing business in the UK is surprisingly easy. Setting up a business doesn’t take long and the costs of doing so are more than affordable. The country’s strong GDP is another factor that makes the island one of the best countries to expand your business internationally—despite the ripple effect of Brexit.
The country further holds trade agreements with many countries all over the world, and corporate tax rates are relatively low.
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15. Luxembourg
Luxembourg’s labor productivity rates are unparalleled in the world. The GDP per hour worked stands at USD 136.45, which is the amount of revenue generated per hour and per capita. This means that it is definitely worth considering Luxembourg as a potential destination for business expansion despite the high labor costs and the considerable expenses linked to starting a business.
A strong GDP growth rate and a dynamic business environment further make up for the costs businesses incur when expanding into Luxembourg.
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Lano is your reliable partner for expanding your business internationally
International business expansion opens up a wide range of opportunities for businesses to generate more revenue and increase the global reach of their brand. However, expanding into foreign markets comes with its own set of challenges, such as navigating local employment laws and payroll regulations. This is where international employment and payroll solutions like Lano come into play.
Lano’s global employment and payroll platform makes it easy for businesses to set up local payroll and hire employees in new markets. Thanks to our global network of trusted EOR and payroll partners, you can count on expert advice in all things payroll, compliance, and employment across a range of more than 170 countries. Book a demo with one of our experts to learn more.
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