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Which Country is the Cheapest for Starting a Business?

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Cost of Starting A Business By Country Full

Which Country is the Cheapest for Starting A Business?

Starting a new business isn’t as simple as coming up with an idea.

In addition to the time investment needed to formulate and create a business, there’s often a hefty capital requirement. A new business usually requires paying different fees for licensing, permits, and approvals, and many governments also have minimum on-hand capital requirements.

And costs are relative. Though it might be more costly to start a business in some countries on paper, affordability also takes into account relative income.

These graphics from BusinessFinancing.co.uk use data from the World Bank’s Doing Business 2020 report to examine the startup cost for a small-to-medium-size LLC in the largest business cities across 190 countries.

The Cost of Starting a Business in Different Countries

From a pure cost perspective, the affordability of starting a business is extremely dependent on where you are located.

Some countries make the cost of business extremely low to encourage more economic activity. Others have high or nearly inaccessible fees to protect existing businesses, or to simply cash in on the entrepreneurial spirit.

CountryCost (2020 USD)% of Monthly Income
Venezuela0-%
Rwanda0-%
Slovenia0-%
Kyrgyzstan80.1
Sudan80.13
Timor Leste100.09
Azerbaijan110.04
Kazakhstan120.02
Ukraine120.06
Egypt130.07
South Africa130.03
Mauritania140.12
Uzbekistan140.13
Chile160.02
United Kingdom170.01
Belarus180.04
Pakistan200.16
Croatia270.03
Sierra Leone290.81
Armenia300.1
Burundi301.77
Iran310.09
Benin320.38
Liberia320.87
Niger320.78
Afghanistan330.86
Georgia330.1
Mongolia370.17
Romania380.05
Botswana400.08
New Zealand430.02
South Korea470.02
Kosovo49-%
Angola540.63
Togo561.29
Indonesia740.3
Bulgaria750.11
Moldova760.24
Mozambique762.09
Russia770.11
Congo (Democratic Republic of the)802.39
Ireland860.02
Lesotho860.89
Mauritius860.1
Lithuania900.07
Tunisia930.42
Belize990.33
Bhutan1000.45
Madagascar1002.72
Laos1050.68
Montenegro1050.16
Denmark1100.02
Serbia1120.24
Trinidad and Tobago1150.1
Malawi1174.72
Morocco1200.52
Zambia1201.28
Cameroon1251.24
Ghana1251.03
Vietnam1280.73
Tajikistan1361.86
China1380.21
India1420.98
Bangladesh1491.11
Ethiopia1503.21
Honduras1520.85
Czech Republic1580.13
Uganda1633.67
Canada1650.05
Argentina1670.21
Eritrea1744.63
Kiribati1740.7
Estonia1760.11
Sri Lanka1760.56
Turkey1770.28
Myanmar1791.73
Nepal1862.43
Jamaica1890.48
Thailand2010.43
North Macedonia2020.52
Algeria2030.79
Comoros2041.9
Greece2040.14
Slovakia2090.17
Brazil2180.35
Nigeria2231.68
Bahrain2310.14
Micronesia, Federated States of2310.82
Paraguay2320.61
Dominican Republic2330.39
Singapore2380.06
Taiwan239-%
Sweden2590.07
Tonga2620.78
Portugal2680.17
Latvia2870.25
Samoa2961
France3180.11
Tanzania3224.55
The Gambia3266.71
Libya3280.59
Guinea-Bissau3325.72
Senegal3433.35
Kenya3533.01
Peru3550.77
Costa Rica3630.4
Colombia3640.85
Brunei3660.18
Hungary3690.34
South Sudan3735.31
Palau375-%
Australia3770.1
Guinea3806.42
Poland3870.36
Philippines3891.44
Swaziland (Eswatini)4251.59
Guyana4361.29
Namibia4461.15
Papua New Guinea4592.71
Vanuatu4842.04
Mali4938.02
Oman5020.65
Hong Kong5121.2
Germany5240.16
Central African Republic52914.55
Malaysia5670.83
Zimbabwe5765.01
Chad59113.58
Albania5971.71
Marshall Islands610-%
Malta620-%
Japan6410.24
Fiji7051.65
United States of America7250.16
Panama7300.66
Spain7360.34
Cambodia7467.55
Finland7970.23
Yemen80810.7
Kuwait8140.31
Guatemala8192.63
Bosnia and Herzegovina8331.93
Seychelles8420.75
Jordan8602.67
Somalia900-%
Haiti94114.03
Gabon9472.18
Nicaragua9486.6
El Salvador9753.53
Dominica10732.31
Iceland10890.23
Barbados11590.92
Congo (Republic of the)122925.46
Israel12410.41
Saudi Arabia12670.81
Antigua and Barbuda1271-%
Bolivia12935.67
Luxembourg13430.27
Uruguay13441.13
Syria139210.41
Grenada1410-%
Mexico14502.34
Switzerland14630.27
Norway14820.27
Iraq15734.34
Cyprus15760.72
Liechtenstein1619-%
Ecuador16304.23
Bahamas18100.89
Netherlands21900.59
Equatorial Guinea23227.18
Belgium24020.74
Austria24750.71
Lebanon28555.35
Suriname303011.14
Qatar39520.92
San Marino4672-%
Italy48762.02
United Arab Emirates74442.23

At a glance, the cheapest regions for starting a business include Central Asia and Africa.

But the cheapest countries on the dollar for a new startup are Venezuela, Rwanda, and Slovenia. While the former does have fees that only total $0.21, both Rwanda and Slovenia have no fees for new businesses, though Slovenia does have a capital requirement of €7,500.

Expensive countries for new businesses are also spread across the world. There are some in Europe, including Italy at $4,876 and Austria at $2,475, as well as the Americas, including Suriname at $3,030 and Ecuador at $1,630.

The most expensive countries, however, are largely in the Middle East. They include #1 UAE at $7,444, #4 Qatar at $3,952, and #6 Lebanon at $2,855.

Which Country is the Most Affordable for Starting a Business?

Just as costs vary by country, so too does relative affordability.

Though some countries are cheaper than others for starting a business on the dollar, the picture changes when accounting for monthly income. When it comes to the cost of starting a business relative to monthly income, many developed countries take the cake.

Not including countries with missing data, the most affordable countries for starting a business include the UK, Denmark, and Ireland in Europe, South Korea in East Asia, and New Zealand in Oceania. Startup costs in each range from just 1%-2% of monthly income.

The picture is similar in the Americas, where Chile and Canada have the lowest relative fees at 2% and 5% of monthly income respectively. Even the U.S.—which has a decently high cost of $725 for starting a business—is relatively affordable at 16% of monthly income.

Some of the least affordable countries lie in the Middle-East and Central America. Haiti and Suriname have startup costs that are 1,403% and 1,114% of monthly income, while Yemen has affordability rates of 1,070%.

But the least affordable countries are in Africa. Many countries on the continent have startup costs that are more than 100% of monthly income, but the Republic of the Congo and the Central African Republic have affordability rates of 2,546% and 1,455% of monthly income, respectively.

Where is the best place to start a business? It can depend on the barrier to entry. But the biggest barrier takes time and ingenuity: finding the right idea at the right time.

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Companies Gone Public in 2021: Visualizing IPO Valuations

Tracking the companies that have gone public in 2021, their valuation, and how they did it.

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Companies Gone Public in 2021 Share

Companies Gone Public in 2021: Visualizing Valuations

Despite its many tumultuous turns, last year was a productive year for global markets, and companies going public in 2021 benefited.

From much-hyped tech initial public offerings (IPOs) to food and healthcare services, many companies with already large followings have gone public this year. Some were supposed to go public in 2020 but got delayed due to the pandemic, and others saw the opportunity to take advantage of a strong current market.

This graphic measures 68 companies that have gone public in 2021 — including IPOs, SPACs, and Direct Listings—as well as their subsequent valuations after listing.

Who’s Gone Public in 2021?

Historically, companies that wanted to go public employed one main method above others: the initial public offering (IPO).

But companies going public today readily choose from one of three different options, depending on market situations, associated costs, and shareholder preference:

  • Initial Public Offering (IPO): A private company creates new shares which are underwritten by a financial organization and sold to the public.
  • Special Purpose Acquisition Company (SPAC): A separate company with no operations is created strictly to raise capital to acquire the company going public. SPACs are the fastest method of going public, and have become popular in recent years.
  • Direct Listing: A private company enters a market with only existing, outstanding shares being traded and no new shares created. The cost is lower than that of an IPO, since no fees need to be paid for underwriting.

The majority of companies going public in 2021 chose the IPO route, but some of the biggest valuations resulted from direct listings.

Listing DateCompanyValuation ($B)Listing Type
08-Jan-21Clover Health$7.0SPAC
13-Jan-21Affirm$11.9IPO
13-Jan-21Billtrust$1.3SPAC
14-Jan-21Poshmark$3.0IPO
15-Jan-21Playtika$11.0IPO
21-Jan-21Hims and Hers Health$1.6SPAC
28-Jan-21Qualtrics$15.0IPO
09-Feb-21Metromile-SPAC
11-Feb-21Bumble$8.2IPO
26-Feb-21ChargePoint Holdings-SPAC
03-Mar-21Oscar Health$7.9IPO
10-Mar-21Roblox$30.0Direct Listing
11-Mar-21Coupang$60.0IPO
23-Mar-21DigitalOcean$5.0IPO
25-Mar-21VIZIO$3.9IPO
26-Mar-21ThredUp$1.3IPO
31-Mar-21Coursera$4.3IPO
01-Apr-21Compass$8.0IPO
14-Apr-21Coinbase$86.0Direct Listing
15-Apr-21AppLovin$28.6IPO
21-Apr-21UiPath$35.0IPO
21-Apr-21DoubleVerify$4.2IPO
05-May-21The Honest Company$1.4IPO
07-May-21Lightning eMotors$0.82SPAC
07-May-21Blade Air Mobility$0.83SPAC
19-May-21Squarespace$7.4Direct Listing
19-May-21Procore$9.6IPO
19-May-21Oatly$10.0IPO
26-May-21ZipRecruiter$2.4Direct Listing
26-May-21FIGS$4.4IPO
01-Jun-21SoFi$8.7SPAC
02-Jun-21BarkBox$1.6SPAC
08-Jun-21Marqueta$15.0IPO
10-Jun-21Monday.com$7.5IPO
16-Jun-21WalkMe$2.5IPO
22-Jun-21Sprinklr$3.7IPO
24-Jun-21Confluent$9.1IPO
29-Jun-21Clear$4.5IPO
30-Jun-21SentinelOne$10.0IPO
30-Jun-21LegalZoom$7.0IPO
30-Jun-21Didi Chuxing$73.0IPO
16-Jul-21Blend$4IPO
21-Jul-21Kaltura$1.24IPO
21-Jul-21DISCO$2.5IPO
21-Jul-21Couchbase$1.4IPO
23-Jul-21Vtex$3.5IPO
23-Jul-21Outbrain$1.1IPO
28-Jul-21Duolingo$3.7IPO
28-Jul-21Riskified$3.3IPO
29-Jul-21Robinhood$32.0IPO
22-Sep-21Toast$22.0IPO
22-Sep-21Freshworks$10.1IPO
23-Sep-21Remitly$6.9IPO
28-Sep-21Amplitude$6.4Direct Listing
29-Sep-21Warby Parker$6.0Direct Listing
14-Oct-21GitLab$11.0IPO
27-Oct-21Rent the Runway$1.7IPO
29-Oct-21Udemy$4.0IPO
03-Nov-21Allbirds$2.2IPO
04-Nov-21NerdWallet$1.2IPO
10-Nov-21Rivian$66.5IPO
10-Nov-21Expensify$2.2IPO
11-Nov-21Winc-IPO
11-Nov-21Weave-IPO
17-Nov-21UserTesting-IPO
17-Nov-21Braze$6.0IPO
18-Nov-21Sweetgreen$3.0IPO
09-Dec-21Nubank$41.0IPO

Though there are many well-known names in the list, one of the biggest through lines continues to be the importance of tech.

A majority of 2021’s newly public companies have been in tech, including multiple mobile apps, websites, and online services. The two biggest IPOs so far were South Korea’s Coupang, an online marketplace valued at $60 billion after going public, and China’s ride-hailing app Didi Chuxing, the year’s largest post-IPO valuation at $73 billion.

And there were many apps and services going public through other means as well. Gaming company Roblox went public through a direct listing, earning a valuation of $30 billion, and cryptocurrency platform Coinbase has earned the year’s largest valuation so far, with an $86 billion valuation following its direct listing.

Big Companies Going Public in 2022

As with every year, some of the biggest companies going public were lined up for the later half.

Tech will continue to be the talk of the markets. Payment processing firm Stripe was setting up to be the year’s biggest IPO with an estimated valuation of $95 billion, but got delayed. Likewise, online grocery delivery platform InstaCart, which saw a big upswing in traction due to the pandemic, has been looking to go public at a valuation of at least $39 billion.

Of course, it’s common that potential public listings and offerings fall through. Whether they get delayed due to weak market conditions or cancelled at the last minute, anything can happen when it comes to public markets.

This post has been updated as of January 1, 2022.

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The World’s Biggest Startups: Top Unicorns of 2021

Here are the world’s biggest startups with a valuation above $10 billion.

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Biggest Startups Top Unicorns of 2021 Share

The World’s Biggest Startups: Top Unicorns of 2021

Many entrepreneurs start businesses around the world, but only the most successful new companies become “unicorns”—the biggest startups with a valuation above $1 billion.

Some unicorns are little-known companies making quiet but impactful strides in software, healthcare, automotive, and other fields. Others have already become well-known industry leaders, like aerospace manufacturer SpaceX and game developer and publisher Epic Games.

In total, there are more than 800 unicorn startups globally. That said, this visualization specifically hones in on the world’s decacorns (unicorns with valuations above $10 billion) as of December 2021 according to CB Insights.

Private Startups Valued at Over $10 Billion

The world’s most prominent unicorns constantly see their valuations change as they enter different rounds of funding or maturity.

In December 2021, there were 35 startups with a valuation above $10 billion, spread out across different countries and industries.

CompanyValuationCountryCategory
Bytedance$140BChinaArtificial intelligence
SpaceX$100.3BU.S.Other
Stripe$95BU.S.Fintech
Klarna$45.6BSwedenFintech
Canva$40BAustraliaInternet software & services
Instacart$39BU.S.Supply chain, logistics, & delivery
Databricks$38BU.S.Data management & analytics
Revolut$33BUKFintech
Nubank$30BBrazilFintech
Epic Games$28.7BU.S.Other
Chime$25BU.S.Fintech
FTX$25BChina (Hong Kong)Fintech
BYJU's$21BIndiaEdtech
Xiaohongshu$20BChinaE-commerce & direct-to-consumer
J&T Express$20BIndonesiaSupply chain, logistics, & delivery
Fanatics$18BU.S.E-commerce & direct-to-consumer
Yuanfudao$15.5BChinaEdtech
DJI Innovations$15BChinaHardware
SHEIN$15BChinaE-commerce & direct-to-consumer
Checkout.com$15BUKFintech
goPuff$15BU.S.E-commerce & direct-to-consumer
Plaid Technologies$13.4BU.S.Fintech
Grammarly$13BU.S.Internet software & services
Devoted Health$12.6BU.S.Health
Faire$12.4BU.S.Artificial intelligence
Brex$12.3BU.S.Fintech
SenseTime$12BChinaArtificial intelligence
Bitmain Technologies$12BChinaHardware
Biosplice Therapeutics$12BU.S.Health
JUUL Labs$12BU.S.Consumer & retail
GoodLeap$12BU.S.Internet software & services
ZongMu Technology$11.4BChinaAuto & transportation
Global Switch$11.1BUKHardware
Celonis$11BGermanyData management & analytics
Weilong$10.9BChinaConsumer & retail

Many of the most valuable startups are already giants in their fields. For example, social media company Bytedance is the developer behind video network platform Douyin and its international version, TikTok, and has amassed a valuation of $140 billion.

Financial services and payment software company Stripe jumped from a valuation of $36 billion to $95 billion over the course of the COVID-19 pandemic.

Even less universally prominent names like Swedish fintech Klarna ($45.6 billion) and Australian graphic design platform Canva ($40.0 billion) are well known within their respective fields.

But private valuations don’t last forever. Many eventually go public, like electric vehicle maker and Tesla competitor Rivian, which had a valuation of $27.6 billion before listing on the NASDAQ.

The Biggest Startups by Industries and Countries

Breaking down the world’s biggest startups by industry highlights that tech is still king in most investing circles.

More than 77% of unicorns valued above $10 billion are categorized directly in tech-related fields, primarily in financial and commerce software.

Startups Valued Above $10B By IndustryNumber
Fintech9
E-commerce & direct-to-consumer4
Artificial intelligence3
Hardware3
Internet software & services3
Consumer & retail2
Data management & analytics2
Edtech2
Health2
Other2
Supply chain, logistics, & delivery2
Auto & transportation1

And many of the unicorns categorized in non-tech fields are still technology companies at their core. In fact, Indonesia’s logistics and package delivery company J&T Express is one of the few unicorns not directly in tech, though it still uses automated sorting in its warehouses.

It was one of the few startups to come from somewhere other than the U.S. or China, which together accounted for over 70% of the 35 biggest startups. The UK (3) was the next most-frequently listed headquarters, while Australia, Brazil, Germany, India and Sweden each had one of these unicorns on the list.

With constantly fluctuating valuations and technological breakthroughs always around the corner, the next $10 billion unicorn could come from almost anywhere.

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