Economy

Which Country is the Cheapest for Starting a Business?

Published

2 years ago

August 3, 2021

Omri Wallach

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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.

Country	Cost (2020 USD)	% of Monthly Income
Venezuela	0	-%
Rwanda	0	-%
Slovenia	0	-%
Kyrgyzstan	8	0.1
Sudan	8	0.13
Timor Leste	10	0.09
Azerbaijan	11	0.04
Kazakhstan	12	0.02
Ukraine	12	0.06
Egypt	13	0.07
South Africa	13	0.03
Mauritania	14	0.12
Uzbekistan	14	0.13
Chile	16	0.02
United Kingdom	17	0.01
Belarus	18	0.04
Pakistan	20	0.16
Croatia	27	0.03
Sierra Leone	29	0.81
Armenia	30	0.1
Burundi	30	1.77
Iran	31	0.09
Benin	32	0.38
Liberia	32	0.87
Niger	32	0.78
Afghanistan	33	0.86
Georgia	33	0.1
Mongolia	37	0.17
Romania	38	0.05
Botswana	40	0.08
New Zealand	43	0.02
South Korea	47	0.02
Kosovo	49	-%
Angola	54	0.63
Togo	56	1.29
Indonesia	74	0.3
Bulgaria	75	0.11
Moldova	76	0.24
Mozambique	76	2.09
Russia	77	0.11
Congo (Democratic Republic of the)	80	2.39
Ireland	86	0.02
Lesotho	86	0.89
Mauritius	86	0.1
Lithuania	90	0.07
Tunisia	93	0.42
Belize	99	0.33
Bhutan	100	0.45
Madagascar	100	2.72
Laos	105	0.68
Montenegro	105	0.16
Denmark	110	0.02
Serbia	112	0.24
Trinidad and Tobago	115	0.1
Malawi	117	4.72
Morocco	120	0.52
Zambia	120	1.28
Cameroon	125	1.24
Ghana	125	1.03
Vietnam	128	0.73
Tajikistan	136	1.86
China	138	0.21
India	142	0.98
Bangladesh	149	1.11
Ethiopia	150	3.21
Honduras	152	0.85
Czech Republic	158	0.13
Uganda	163	3.67
Canada	165	0.05
Argentina	167	0.21
Eritrea	174	4.63
Kiribati	174	0.7
Estonia	176	0.11
Sri Lanka	176	0.56
Turkey	177	0.28
Myanmar	179	1.73
Nepal	186	2.43
Jamaica	189	0.48
Thailand	201	0.43
North Macedonia	202	0.52
Algeria	203	0.79
Comoros	204	1.9
Greece	204	0.14
Slovakia	209	0.17
Brazil	218	0.35
Nigeria	223	1.68
Bahrain	231	0.14
Micronesia, Federated States of	231	0.82
Paraguay	232	0.61
Dominican Republic	233	0.39
Singapore	238	0.06
Taiwan	239	-%
Sweden	259	0.07
Tonga	262	0.78
Portugal	268	0.17
Latvia	287	0.25
Samoa	296	1
France	318	0.11
Tanzania	322	4.55
The Gambia	326	6.71
Libya	328	0.59
Guinea-Bissau	332	5.72
Senegal	343	3.35
Kenya	353	3.01
Peru	355	0.77
Costa Rica	363	0.4
Colombia	364	0.85
Brunei	366	0.18
Hungary	369	0.34
South Sudan	373	5.31
Palau	375	-%
Australia	377	0.1
Guinea	380	6.42
Poland	387	0.36
Philippines	389	1.44
Swaziland (Eswatini)	425	1.59
Guyana	436	1.29
Namibia	446	1.15
Papua New Guinea	459	2.71
Vanuatu	484	2.04
Mali	493	8.02
Oman	502	0.65
Hong Kong	512	1.2
Germany	524	0.16
Central African Republic	529	14.55
Malaysia	567	0.83
Zimbabwe	576	5.01
Chad	591	13.58
Albania	597	1.71
Marshall Islands	610	-%
Malta	620	-%
Japan	641	0.24
Fiji	705	1.65
United States of America	725	0.16
Panama	730	0.66
Spain	736	0.34
Cambodia	746	7.55
Finland	797	0.23
Yemen	808	10.7
Kuwait	814	0.31
Guatemala	819	2.63
Bosnia and Herzegovina	833	1.93
Seychelles	842	0.75
Jordan	860	2.67
Somalia	900	-%
Haiti	941	14.03
Gabon	947	2.18
Nicaragua	948	6.6
El Salvador	975	3.53
Dominica	1073	2.31
Iceland	1089	0.23
Barbados	1159	0.92
Congo (Republic of the)	1229	25.46
Israel	1241	0.41
Saudi Arabia	1267	0.81
Antigua and Barbuda	1271	-%
Bolivia	1293	5.67
Luxembourg	1343	0.27
Uruguay	1344	1.13
Syria	1392	10.41
Grenada	1410	-%
Mexico	1450	2.34
Switzerland	1463	0.27
Norway	1482	0.27
Iraq	1573	4.34
Cyprus	1576	0.72
Liechtenstein	1619	-%
Ecuador	1630	4.23
Bahamas	1810	0.89
Netherlands	2190	0.59
Equatorial Guinea	2322	7.18
Belgium	2402	0.74
Austria	2475	0.71
Lebanon	2855	5.35
Suriname	3030	11.14
Qatar	3952	0.92
San Marino	4672	-%
Italy	4876	2.02
United Arab Emirates	7444	2.23

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.

Affordability of Starting A Business By Country

High-resolution version

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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Healthcare

Charted: Average Years Left to Live by Age

Visualizing the number of years left to live for Americans at every age, reveals the broader trends in American life expectancy.

Published

2 days ago

November 29, 2023

Pallavi Rao

Chart showing the average years left to live at every age for men and women.

How Many Years Do You Have Left to Live?

At the start of the 19th century, when there fewer than 1 billion humans on the earth, global life expectancy at birth stood at roughly 29 years.

This is a startlingly low figure—because life expectancy is a statistical projection of how many more years a person can expect to live, based on the mortality rates at the time. And since the infant mortality rate in particular was so high, life expectancies accurately summarized the low likelihood of many babies living to adulthood.

However, since the 1920s, life expectancy across all ages has improved leaps and bounds, thanks to rapid advancements in nutrition, healthcare, and sanitation.

We visualized the current American life expectancy by age and gender, using data from the Office of Social Security, which bases their current projections on 2020 mortality rates.

American Life Expectancy at Every Age

A key takeaway with life expectancy is that it increases as one gets older. This is easily seen in the table below, which lists the remaining years left to live at a given age for an American male and the projected life expectancy.

Age	Years Remaining (Men)	Life Expectancy (Men)
0	74.12	74.12
1	73.55	74.55
2	72.58	74.58
3	71.60	74.60
4	70.62	74.62
5	69.63	74.63
6	68.64	74.64
7	67.65	74.65
8	66.65	74.65
9	65.66	74.66
10	64.67	74.67
11	63.68	74.68
12	62.69	74.69
13	61.70	74.70
14	60.71	74.71
15	59.73	74.73
16	58.76	74.76
17	57.79	74.79
18	56.84	74.84
19	55.90	74.90
20	54.97	74.97
21	54.04	75.04
22	53.12	75.12
23	52.21	75.21
24	51.30	75.30
25	50.39	75.39
26	49.48	75.48
27	48.57	75.57
28	47.66	75.66
29	46.76	75.76
30	45.86	75.86
31	44.97	75.97
32	44.07	76.07
33	43.18	76.18
34	42.29	76.29
35	41.39	76.39
36	40.50	76.50
37	39.62	76.62
38	38.73	76.73
39	37.85	76.85
40	36.97	76.97
41	36.09	77.09
42	35.21	77.21
43	34.34	77.34
44	33.46	77.46
45	32.59	77.59
46	31.73	77.73
47	30.87	77.87
48	30.01	78.01
49	29.17	78.17
50	28.33	78.33
51	27.50	78.50
52	26.67	78.67
53	25.86	78.86
54	25.06	79.06
55	24.27	79.27
56	23.48	79.48
57	22.71	79.71
58	21.95	79.95
59	21.21	80.21
60	20.47	80.47
61	19.74	80.74
62	19.03	81.03
63	18.32	81.32
64	17.63	81.63
65	16.94	81.94
66	16.26	82.26
67	15.58	82.58
68	14.91	82.91
69	14.24	83.24
70	13.59	83.59
71	12.94	83.94
72	12.30	84.30
73	11.67	84.67
74	11.05	85.05
75	10.46	85.46
76	9.88	85.88
77	9.32	86.32
78	8.77	86.77
79	8.25	87.25
80	7.74	87.74
81	7.25	88.25
82	6.77	88.77
83	6.31	89.31
84	5.88	89.88
85	5.47	90.47
86	5.07	91.07
87	4.70	91.70
88	4.35	92.35
89	4.02	93.02
90	3.72	93.72
91	3.44	94.44
92	3.18	95.18
93	2.96	95.96
94	2.75	96.75
95	2.57	97.57
96	2.42	98.42
97	2.28	99.28
98	2.15	100.15
99	2.04	101.04
100	1.93	101.93
101	1.83	102.83
102	1.73	103.73
103	1.63	104.63
104	1.54	105.54
105	1.45	106.45
106	1.36	107.36
107	1.27	108.27
108	1.18	109.18
109	1.10	110.10
110	1.02	111.02
111	0.95	111.95
112	0.88	112.88
113	0.82	113.82
114	0.76	114.76
115	0.70	115.70
116	0.65	116.65
117	0.60	117.60
118	0.56	118.56
119	0.52	119.52
120	0.48	120.48

At birth, an average American baby boy can expect to live till just past 74. But if the boy reaches adulthood, then at 21 he might live to a full year more, past 75. This trend persists even towards the end of life when the years we have left drop rapidly, influenced by the higher likelihood of death.

American women, on the other hand, have a higher life expectancy than men. At birth the gap is close to six years, narrowing steadily to around one year by 85.

Age	Years Remaining (Women)	Life Expectancy (Women)
0	79.78	79.78
1	79.17	80.17
2	78.19	80.19
3	77.21	80.21
4	76.22	80.22
5	75.23	80.23
6	74.24	80.24
7	73.25	80.25
8	72.25	80.25
9	71.26	80.26
10	70.27	80.27
11	69.27	80.27
12	68.28	80.28
13	67.29	80.29
14	66.30	80.30
15	65.31	80.31
16	64.32	80.32
17	63.34	80.34
18	62.36	80.36
19	61.38	80.38
20	60.41	80.41
21	59.44	80.44
22	58.47	80.47
23	57.50	80.50
24	56.54	80.54
25	55.58	80.58
26	54.61	80.61
27	53.66	80.66
28	52.70	80.70
29	51.74	80.74
30	50.79	80.79
31	49.84	80.84
32	48.89	80.89
33	47.94	80.94
34	47.00	81.00
35	46.06	81.06
36	45.12	81.12
37	44.18	81.18
38	43.24	81.24
39	42.31	81.31
40	41.38	81.38
41	40.45	81.45
42	39.52	81.52
43	38.60	81.60
44	37.68	81.68
45	36.76	81.76
46	35.85	81.85
47	34.94	81.94
48	34.04	82.04
49	33.14	82.14
50	32.24	82.24
51	31.35	82.35
52	30.47	82.47
53	29.59	82.59
54	28.72	82.72
55	27.86	82.86
56	27.01	83.01
57	26.16	83.16
58	25.32	83.32
59	24.49	83.49
60	23.67	83.67
61	22.85	83.85
62	22.04	84.04
63	21.24	84.24
64	20.45	84.45
65	19.66	84.66
66	18.88	84.88
67	18.10	85.10
68	17.34	85.34
69	16.58	85.58
70	15.82	85.82
71	15.08	86.08
72	14.36	86.36
73	13.64	86.64
74	12.94	86.94
75	12.26	87.26
76	11.60	87.60
77	10.95	87.95
78	10.31	88.31
79	9.70	88.70
80	9.10	89.10
81	8.53	89.53
82	7.98	89.98
83	7.44	90.44
84	6.93	90.93
85	6.44	91.44
86	5.99	91.99
87	5.55	92.55
88	5.15	93.15
89	4.76	93.76
90	4.41	94.41
91	4.08	95.08
92	3.78	95.78
93	3.51	96.51
94	3.27	97.27
95	3.05	98.05
96	2.85	98.85
97	2.68	99.68
98	2.52	100.52
99	2.37	101.37
100	2.23	102.23
101	2.09	103.09
102	1.96	103.96
103	1.84	104.84
104	1.72	105.72
105	1.61	106.61
106	1.51	107.51
107	1.41	108.41
108	1.32	109.32
109	1.24	110.24
110	1.16	111.16
111	1.09	112.09
112	1.02	113.02
113	0.96	113.96
114	0.90	114.90
115	0.85	115.85
116	0.80	116.80
117	0.75	117.75
118	0.70	118.70
119	0.66	119.66
120	0.62	120.62

Interestingly, women outlive men in nearly every country in the world, due to a mix of sociological, behavioral, and biological reasons.

COVID-19: Reversing A Decade of Increasing American Life Expectancy

While the current American life expectancy at birth seems reasonably high, it is nearly two years lower than the 2022 figure which used the 2019 mortality rate. It is also lower than the life expectancy at birth in 2009, which used 2005 mortality rate.

Year	Life Expectancy at Birth (Men)	Life Expectancy at Birth (Women)
2009	74.12	79.95
2014	76.10	80.94
2019	76.04	80.99
2023	74.12	79.78

American mortality rates went up 17% between 2019–2020, in part because of COVID-19, in turn affecting life expectancy. The U.S. also had a higher COVID-19 mortality rate compared to its peers two years after the pandemic first struck.

Thus, American life expectancy may not improve immediately to 2019 levels, which can affect insurance premiums, pension benefits, and plans.

Where Does This Data Come From?

Source: Office of Social Security, U.S. Government.

Note: The life expectancy at a given age is the average remaining number of years expected prior to death for a person at that exact age, born on January 1, using the mortality rates for 2020 over the course of their remaining life.