Before deciding which country to expand their business to, companies weigh operating and human costs in different countries. The ranking below is based on an equally weighted average of scores from five country attributes that relate to how open for business a country is: bureaucratic, cheap manufacturing costs, corrupt, favorable tax environment and transparent government practices.
The countries considered the most business-friendly are those that are perceived to best balance stability and expense, as investors want a cheap and stable environment to conduct their businesses. Strong perceptions of corruption, bureaucracy, political instability and poor government policies make some countries seem like risky places to do business.
Here are the top 10 most business-friendly countries in the world.
1. Luxembourg
Luxembourg is the capital of the small European nation of the same name. Built amid deep gorges cut by the Alzette and Pétrusse rivers, it’s famed for its ruins of medieval fortifications. The vast Bock Casemates tunnel network encompasses a dungeon, prison and the Archaeological Crypt, considered the city’s birthplace. Along ramparts above, the Chemin de la Corniche promenade offers dramatic viewpoints.
2. Switzerland
Switzerland is a mountainous Central European country, home to numerous lakes, villages and the high peaks of the Alps. Its cities contain medieval quarters, with landmarks like capital Bern’s Zytglogge clock tower and Lucerne’s wooden chapel bridge. The country is also known for its ski resorts and hiking trails. Banking and finance are key industries, and Swiss watches and chocolate are world renowned.
3. Canada
Canada is a country in the northern part of North America. Its ten provinces and three territories extend from the Atlantic to the Pacific and northward into the Arctic Ocean, covering 9.98 million square kilometres, making it the world’s second-largest country by total area.
4. Denmark
Denmark is a Scandinavian country comprising the Jutland Peninsula and numerous islands. It’s linked to nearby Sweden via the Öresund bridge. Copenhagen, its capital, is home to royal palaces and colorful Nyhavn harbor, plus the Tivoli amusement park and the iconic “Little Mermaid” statue. Odense is writer Hans Christian Andersen’s hometown, with a medieval core of cobbled streets and half-timbered houses.
5. Singapore
Singapore, an island city-state off southern Malaysia, is a global financial center with a tropical climate and multicultural population. Its colonial core centers on the Padang, a cricket field since the 1830s and now flanked by grand buildings such as City Hall, with its 18 Corinthian columns. In Singapore’s circa-1820 Chinatown stands the red-and-gold Buddha Tooth Relic Temple, said to house one of Buddha’s teeth.
6. Netherlands
The Netherlands, a country in northwestern Europe, is known for a flat landscape of canals, tulip fields, windmills and cycling routes. Amsterdam, the capital, is home to the Rijksmuseum, Van Gogh Museum and the house where Jewish diarist Anne Frank hid during WWII. Canalside mansions and a trove of works from artists including Rembrandt and Vermeer remain from the city’s 17th-century “Golden Age.”
7. Sweden
Sweden is a Scandinavian nation with thousands of coastal islands and inland lakes, along with vast boreal forests and glaciated mountains. Its principal cities, eastern capital Stockholm and southwestern Gothenburg and Malmö, are all coastal. Stockholm is built on 14 islands. It has more than 50 bridges, as well as the medieval old town, Gamla Stan, royal palaces and museums such as open-air Skansen.
8. Thailand
Thailand is a Southeast Asian country. It’s known for tropical beaches, opulent royal palaces, ancient ruins and ornate temples displaying figures of Buddha. In Bangkok, the capital, an ultramodern cityscape rises next to quiet canalside communities and the iconic temples of Wat Arun, Wat Pho and the Emerald Buddha Temple (Wat Phra Kaew). Nearby beach resorts include bustling Pattaya and fashionable Hua Hin.
9. Finland
Finland is a Northern European nation bordering Sweden, Norway and Russia. Its capital, Helsinki, occupies a peninsula and surrounding islands in the Baltic Sea. Helsinki is home to the 18th-century sea fortress Suomenlinna, the fashionable Design District and diverse museums. The Northern Lights can be seen from the country’s Arctic Lapland province, a vast wilderness with national parks and ski resorts.
10. Norway
Norway is a Scandinavian country encompassing mountains, glaciers and deep coastal fjords. Oslo, the capital, is a city of green spaces and museums. Preserved 9th-century Viking ships are displayed at Oslo’s Viking Ship Museum. Bergen, with colorful wooden houses, is the starting point for cruises to the dramatic Sognefjord. Norway is also known for fishing, hiking and skiing, notably at Lillehammer’s Olympic resort.
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