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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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Markets

Ranked: The Largest U.S. Corporations by Number of Employees

We visualized the top U.S. companies by employees, revealing the massive scale of retailers like Walmart, Target, and Home Depot.

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The Largest U.S. Corporations by Number of Employees

This was originally posted on our Voronoi app. Download the app for free on Apple or Android and discover incredible data-driven charts from a variety of trusted sources.

Revenue and profit are common measures for measuring the size of a business, but what about employee headcount?

To see how big companies have become from a human perspective, we’ve visualized the top U.S. companies by employees. These figures come from companiesmarketcap.com, and were accessed in March 2024. Note that this ranking includes publicly-traded companies only.

Data and Highlights

The data we used to create this list of largest U.S. corporations by number of employees can be found in the table below.

CompanySectorNumber of Employees
WalmartConsumer Staples2,100,000
AmazonConsumer Discretionary1,500,000
UPSIndustrials500,000
Home DepotConsumer Discretionary470,000
ConcentrixInformation Technology440,000
TargetConsumer Staples440,000
KrogerConsumer Staples430,000
UnitedHealthHealth Care400,000
Berkshire HathawayFinancials383,000
StarbucksConsumer Discretionary381,000
Marriott InternationalConsumer Discretionary377,000
CognizantInformation Technology346,600

Retail and Logistics Top the List

Companies like Walmart, Target, and Kroger have a massive headcount due to having many locations spread across the country, which require everything from cashiers to IT professionals.

Moving goods around the world is also highly labor intensive, explaining why UPS has half a million employees globally.

Below the Radar?

Two companies that rank among the largest U.S. corporations by employees which may be less familiar to the public include Concentrix and Cognizant. Both of these companies are B2B brands, meaning they primarily work with other companies rather than consumers. This contrasts with brands like Amazon or Home Depot, which are much more visible among average consumers.

A Note on Berkshire Hathaway

Warren Buffett’s company doesn’t directly employ 383,000 people. This headcount actually includes the employees of the firm’s many subsidiaries, such as GEICO (insurance), Dairy Queen (retail), and Duracell (batteries).

If you’re curious to see how Buffett’s empire has grown over the years, check out this animated graphic that visualizes the growth of Berkshire Hathaway’s portfolio from 1994 to 2022.

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Voronoi, the app by Visual Capitalist. Where data tells the story. Download on App Store or Google Play

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