Whilst lockdowns and restrictions have definitely put a stop to many people’s plans, launching a new business venture seems a popular way to stay occupied during these uncertain times. However, the cost of doing so varies considerably around the world.
To assess international variances, Rovva has analyzed data from the World Bank. This review looks into the costs of starting a business in every country across the globe, to reveal exactly how much it is likely to cost if someone is seeking to set up their own business around the world.
The analysis revealed that the top five locations cheapest to form a business to be:
Rwanda and Slovenia
South Africa
Timor Leste
Ukraine
United Kingdom
The U.K. being positioned on the list is atypical for advanced industrialized countries, perhaps indicative of the U.K. ‘s deregulated economy (a trend that will increase, for good or for bad, post-Brexit).
It costs just £12 ($15) in the U.K. to register a new business with Companies House, and it only takes around an hour to set up a brand new company on the British government portal.
In comparison, Rwanda and Slovenia are the only two countries in the world, where it is free to register a business, whilst in South Africa, it costs £9 ($12). Ukraine is in third place, with just a £10 ($13) charge.
Not every country has affordable costs when forming a business,. The most expensive are:
Venezuela: £9, 062 (approximately $12,000)
UAE: £5,198 (approximately £8,000)
Micronesia: £3,723 (approximately £5,000)
Other countries that are amongst the most expensive include, Italy, San Marino, Korea, and Qatar.
There are, nonetheless, other costs to be considered beyond registration. Some of the reasons for the variances include the cost of the Business Plan, research expenses, property costs, borrowing costs, insurance, licensing, employment and permit fees. Again such costs vary considerably upon the global scale. Such data needs to be examined by those in the more fortuitous position of being able to decide within which country they wish to set up stall.
