Best Countries for Startups: A Founder’s Guide to Choosing the Right Location

How Do You Choose Which Country Is Best For Your Business Model?

Choosing the “best country” to start your company comes down to choosing an environment that fits your business model. The right location depends on how quickly you need to move, how much runway you need to protect, how complex your product is, and what kind of cultural environment will support your team.

A highly regulated fintech company may need a jurisdiction with strong legal clarity and a recognised global ranking. A product–led SaaS company on the other hand, may prioritise lifestyle, affordability, and hiring flexibility. Ultimately, the “best” country is the one that removes friction rather than adds it.

If you’re struggling to work out what that looks like, consider these questions:

• How quickly can we get up and running?
• How do local tax rates affect our runway?
• How much will it cost me to incorporate?
• Where will we find the talent and roles we need and what will it cost me?
• How complex will compliance and labor laws be as we scale?
• How important is proximity to investors or customers?

Crucially, hiring no longer has to mirror the location of your headquarters. Many of the most effective teams Playroll supports use a mixed model. They incorporate in a jurisdiction that makes starting a business straightforward and investor–friendly. And then hire in a blend of high–growth hubs and cost–effective talent markets.

With that context in place, the next step is to look at what actually makes a country startup–friendly.

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The 10 Key Factors That Make a Country Startup–Friendly

Most rankings of the best countries for entrepreneurs answer where to go, but not why. Playroll’s work with global teams shows the same ten factors repeatedly driving location decisions.

Let’s dive in:

1. Ease of Doing Business

Ease of doing business is one of the strongest indicators of how much friction a company will face when getting started. It influences how quickly a founder can incorporate, open a bank account, register for tax, and become fully operational.

In some countries, the first month feels like a series of green lights – clear steps, digital processes, and predictable timelines. Estonia, for example, allows founders to incorporate in a matter of days through its fully online system, while Spain can take several weeks due to more manual paperwork and slower government processing.

These differences compound quickly. A fast-moving jurisdiction gives teams momentum from day one, while a slower one can delay hiring, sales, and early product milestones. Understanding where a country sits on this spectrum helps founders anticipate operational drag – and choose locations that match the pace their startup needs.

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2. Corporate tax rates

Corporate tax rates and associated rules influence how long a startup can extend its runway and how aggressively it can reinvest. Some jurisdictions, such as Estonia and the UAE, have models explicitly designed to treat startups as economic assets.

The UAE, in particular, structures its tax system to minimise early-stage friction: a 0% corporate tax rate on profits under AED 375,000, broad exemptions in many free zones, and no tax on capital gains or dividends. Layered on top is an extensive network of double taxation agreements. This helps businesses reduce withholding taxes and avoid being taxed twice when operating across borders.

You need to look beyond headline rates and understand how taxation interacts with dividends, stock options, and cross–border operations before diving into a new region.

3. Access to Talent

When founders talk about the “best countries for startups,” what they’re really asking is: can I find the people who can build this with me? Local talent ecosystems play a huge role here. Some countries have deep, specialised pools you simply can’t replicate anywhere else. Canada for example is known for its AI researchers, Israel produces cybersecurity experts, the United Kingdom has a powerhouse fintech scene, and both the United States and India offer considerable engineering talent.

What matters most is matching your business stage to the talent a country typically produces. Early-stage SaaS companies often thrive in markets with strong product and design communities. Deep-tech companies on the other hand, gravitate toward countries with academic research density.

4. Cost of Hiring

Cost of hiring is a critical variable in early–stage planning. Salary expectations differ dramatically between countries  – even for similar roles – and the total cost to employers often extends far beyond base pay.

You need to make sure you’re accounting for statutory deductions, employer social contributions, mandatory benefits, and local payroll taxes, all of which can materially change the real cost of a hire.

Many of the teams Playroll works with adopt a hybrid model – a headquarters in a strategic or investor–friendly country, with distributed hiring across cost–effective talent hubs that align with their time zones and customer markets.

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5. Startup Visas and Immigration

Immigration frameworks can either accelerate or slow down your growth. Some countries offer dedicated startup visas, streamlined digital processes, and clear criteria for founders and key employees. Others require longer processing times or make relocation more complex.

For startups, this matters because the ability to move founders, early executives, or critical specialists into the market – quickly and legally – can directly impact fundraising, product velocity, and access to customers.

For globally minded businesses, it is important to understand how easily founders, early executives, or critical specialists will be able to live and work in the chosen market.

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6. Funding Environment and Startup Rank

Markets that appear consistently in the “best countries for startups” lists do so because they combine capital availability, ecosystem maturity, and a track record of successful exits. When capital is flowing and networks are strong, founders can move faster, make better decisions, and avoid the stall-out that happens in quieter markets.

This is also why headquartering in a recognised hub, also known as a “super city”, like Singapore, London, or Delaware can make fundraising feel a lot smoother. Investors already know the rules, the legal structures, and the compliance standards in these jurisdictions. That familiarity lowers their risk and shortens the due-diligence dance.

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7. Infrastructure

Infrastructure is the often overlooked layer that either supports or distracts from building a business. It includes the following:

• Internet Reliability: Stable, high-quality connectivity keeps teams productive and operations uninterrupted.
• Modern Banking: Fast, digital banking systems make it easier to move money, pay teams, and manage cash flow.
• Digital Government Services: Online incorporation, tax registration, and filings reduce admin time and speed up early operations.
• Transport: Reliable transport networks help teams collaborate and access customers and investors.
• Ease of Interacting With Institutions: Clear processes and responsive public agencies reduce friction and uncertainty.

Countries with strong digital infrastructure – from reliable banking systems to widely adopted software for startups – can dramatically reduce early operational friction. This is why some smaller markets with robust digital systems consistently appear on lists of the easiest countries to start a business.

8. Regional Access

Regional access is one of those factors that sounds simple but can completely change your growth curve. It really comes down to the broader region your business needs access to. Choosing the right region means thinking about where you can quickly reach the right neighbouring markets, show up at the right events, and support customers without layers of travel or regulatory friction. The easier that movement is, the easier it is for your startup to scale.

If your customers or partners are mostly in European countries, it makes sense to base yourself in Portugal or Estonia and plug directly into the EU. If you’re targeting Southeast Asia, Singapore gives you a front-row seat to some of the world’s fastest-growing markets. And if you need to serve both North and Latin America, Mexico is a great launchpad.

9. Labor Law Flexibility

A country’s unique labor laws can make hiring feel effortless or restrictive. Some countries keep things straightforward with clear, predictable rules. Others come with strict termination processes, long notice periods, or costly severance requirements that can box a startup in before it finds product–market fit.

As you grow, your team will shift, roles will evolve, and you need room to adapt as you learn. Familiarizing yourself with  the local labor landscape ahead of time helps you avoid unpleasant surprises and build a team that can grow with you.

10. Global Hiring Friendliness

If you’re set on building a modern, distributed team (and you should be), it helps to choose a base that supports cross-border employment, clean compliance pathways, and predictable rules for international work.

Some countries actively encourage global hiring through digital nomad visas, remote-friendly residency options, and clear guidance for employing talent abroad. Cultural norms also matter: markets that value remote work, flexible schedules, and asynchronous collaboration make it far easier to operate across time zones and attract talent from anywhere.

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7 benefits of working remotely for employers

More and more companies are setting up in founder-friendly jurisdictions, then building teams across ten, twenty, or even more markets. Your HQ determines your legal structure and tax footprint – but it doesn’t need to limit your hiring possibilities. Choosing a country that plays well with global employment unlocks flexibility, wider talent pools, and the ability to grow in the direction your business demands.

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One Platform to Hire Anywhere with Ease

If you’re building a global startup, you need an ecosystem that can support you at every phase of your growth. Playroll is that ecosystem – all built into one platform.

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The World’s Most Startup–Friendly Countries

Certain markets consistently outperform others because they make it genuinely easier to start, fund, and scale a company. At Playroll, we see this pattern across hundreds of teams building in different regions: while every founder has unique needs, the countries that rise to the top usually excel across a few core dimensions.

• Speed and ease of starting
• Immigration flexibility
• Talent availability
• Less legal friction
• Scaling potential

When you look at the world through this lens, certain markets repeatedly show up in conversations about the best countries for entrepreneurs. Some offer world-class ecosystems with deep capital and dense talent. Others stand out because they’re intentionally built for global-first founders. And some succeed simply by giving startups more runway through affordable, highly skilled talent.

Below, we break these countries into clear groups so you can see not just who the frontrunners are, but why they matter, and how each one might fit into your broader global hiring strategy.

TL;DR Summary

• Incorporate in investor-friendly hubs like Delaware (U.S.), Singapore, Estonia, or the UK for speed, credibility, and low friction.
• Hire globally using an EOR like Playroll – no local entities needed in 180+ countries.
• Top Ecosystems: U.S., UK, Singapore, Israel, Canada, rising stars include Saudi Arabia.
• Key Trend: HQ choice is now separate from hiring markets – optimize for runway, talent, and time zones.
• Bottom Line: The “best” country removes friction for your stage and model (fintech → Singapore/Delaware; lifestyle SaaS → Portugal/Estonia; deep-tech → Israel/Canada).

Top–Tier Ecosystems: United States, United Kingdom, Singapore, Israel

These are the “super cities” and legacy powerhouses of the startup world – places where capital, talent, and ambition already concentrate. If your strategy depends on ecosystem density, investor proximity, or specialised expertise, these countries tend to rise to the top.

🇺🇸 United States

• Speed and ease of starting: 8/10
• Immigration flexibility: 4/10
• Talent availability: 10/10
• Less Legal friction: 5/10
• Scaling potential: 10/10

The United States remains the gravitational centre of the global startup industry. Cities like San Francisco, New York, and Austin offer unmatched investor access, rich founder communities, and a culture that treats big ideas as a given. Yes, the cost of hiring can run high and immigration can be complex – but the upside in capital, customers, and talent density is hard to beat.

Delaware also plays a defining role. Its founder-friendly corporate laws, predictable legal system, and investor-preferred C-corp structure make it the global standard for incorporation. Yes, the cost of hiring can run high and immigration can be complex – but the upside in capital, customers, and talent density is hard to beat.

🇸🇬 Singapore

• Speed and ease of starting: 10/10
• Immigration flexibility: 8/10
• Talent availability: 8/10
• Legal friction: 8/10
• Scaling potential: 9/10

Singapore is known for its reliability. Processes tend to work the way they’re meant to, and incorporation is fast, often completed within a few days. By contrast, neighbouring Indonesia typically takes several weeks to complete incorporation due to more manual steps, multiple agency approvals, and slower processing timelines.

Founders often choose it because it provides a stable base for serving Southeast Asia and wider Asia-Pacific (APAC) markets. The mix of neighbourhood kopitiams (coffee shops/cafes) and modern cafés reflects the city’s balance of tradition and efficiency – a combination many teams appreciate.

🇬🇧 United Kingdom

• Speed and ease of starting: 9/10
• Immigration flexibility: 7/10
• Talent availability: 9/10
• Legal friction: 7/10
• Scaling potential: 9/10

The UK is a long-established global hub, and London in particular attracts talent from across Europe and beyond. Incorporation is straightforward, legal structures are familiar to most investors, and the ecosystem includes strong fintech, creative, and technical communities. For many founders, it’s a practical choice that blends access, talent, and broader European reach.

🇮🇱 Israel

• Speed and ease of starting: 7/10
• Immigration flexibility: 6/10
• Talent availability: 10/10
• Legal friction: 6/10
• Scaling potential: 9/10

Israel has a reputation for technical excellence, with particular strength in cybersecurity, AI, and deep-tech fields. Tel Aviv’s work culture is collaborative and direct, and the density of engineering expertise is a major draw for founders building complex or research-led products.

Note: With the ongoing war, safety and stability requires monitoring depending where you're based.

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High–Growth Hubs: Estonia, Portugal, United Arab Emirates, Canada

These locations have intentionally shaped themselves into founder-friendly environments by reducing administrative friction and encouraging international teams to set up shop.

🇪🇪 Estonia

• Speed and ease of starting: 10/10
• Immigration flexibility: 7/10
• Talent availability: 6/10
• Legal friction: 9/10
• Scaling potential: 8/10

Estonia is a global reference point for digital public services. Its e-Residency programme and online business infrastructure make it especially appealing to remote-first teams who prefer processes they can handle without geography getting in the way.

🇵🇹 Portugal

• Speed and ease of starting: 8/10
• Immigration flexibility: 8/10
• Talent availability: 7/10
• Legal friction: 7/10
• Scaling potential: 8/10

Portugal continues to attract international companies looking for a balance of cost, lifestyle, and access to the EU. Lisbon and Porto have established themselves as welcoming startup hubs, with growing communities and a steady flow of global talent.

🇦🇪 United Arab Emirates

• Speed and ease of starting: 9/10
• Immigration flexibility: 9/10
• Talent availability: 8/10
• Legal friction: 7/10
• Scaling potential: 8/10

The UAE has invested heavily in becoming a business gateway. Fast incorporation, strong global mobility, and modern infrastructure make it a practical base for teams working across Europe, Asia, and Africa. Dubai, in particular, attracts founders who travel often or operate across multiple regions.

🇨🇦 Canada

• Speed and ease of starting: 7/10
• Immigration flexibility: 10/10
• Talent availability: 9/10
• Legal friction: 7/10
• Scaling potential: 8/10

Canada pairs an open immigration environment with a strong technical talent pool, especially in AI and research-led sectors. Cities like Toronto, Montreal, and Vancouver offer supportive ecosystems with consistent access to skilled workers.

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Cost–Effective Talent Hubs: Poland, Colombia, India, Mexico

These are markets where companies can access highly skilled talent while extending their runway.

🇵🇱 Poland

• Speed and ease of starting: 7/10
• Immigration flexibility: 5/10
• Talent availability: 8/10
• Legal friction: 6/10
• Scaling potential: 7/10

Poland has a strong engineering culture and a steady pipeline of technical talent. Many global companies build product, development, and operational teams here because of the skill-to-cost ratio and proximity to European markets.

🇨🇴 Colombia

• Speed and ease of starting: 6/10
• Immigration flexibility: 7/10
• Talent availability: 7/10
• Legal friction: 5/10
• Scaling potential: 7/10

Colombia has grown into one of Latin America’s most dynamic hiring markets. Medellín, in particular, has invested in tech districts and innovation programmes, attracting both local and international teams – helped along by a famously strong coffee culture.

🇮🇳 India

• Speed and ease of starting: 6/10
• Immigration flexibility: 5/10
• Talent availability: 10/10
• Legal friction: 4/10
• Scaling potential: 9/10

India provides one of the world’s deepest and most affordable talent pools in engineering, product, and operations. Six of its cities sit in the top 10 cities for tech hiring, with Singapore being the only non-Indian city in the top five. Whether you’re building a support team or scaling development quickly, cities like Bengaluru and Hyderabad offer significant depth and range.

🇲🇽 Mexico

• Speed and ease of starting: 7/10
• Immigration flexibility: 6/10
• Talent availability: 8/10
• Legal friction: 5/10
• Scaling potential: 8/10

Mexico combines cost-effective hiring with time-zone alignment for North American teams. Its growing tech ecosystem (particularly in Mexico City) has become an attractive option for companies operating across LATAM and the U.S.

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Remote-Work-Friendly Hubs: Brazil, South Africa, Philippines

These markets have established themselves as reliable sources of remote-ready talent, especially for distributed teams.

🇧🇷 Brazil

• Speed and ease of starting: 4/10
• Immigration flexibility: 6/10
• Talent availability: 9/10
• Legal friction: 4/10
• Scaling potential: 7/10

Brazil offers a broad and capable workforce across engineering, design, and support roles. Administrative processes can be slower, but many global teams find the talent quality well worth the operational effort.

🇿🇦 South Africa

• Speed and ease of starting: 6/10
• Immigration flexibility: 5/10
• Talent availability: 8/10
• Legal friction: 6/10
• Scaling potential: 7/10

South Africa is particularly popular with companies working in European time zones. Both Cape Town and Johannesburg have active remote-work cultures supported by co-working spaces and strong technical communities – and hiring in South Africa is also highly cost-effective. For many startups, it offers an appealing combination of aligned time zones, strong English proficiency, and access to skilled talent at a far lower cost than many European markets.

🇵🇭 Philippines

• Speed and ease of starting: 6/10
• Immigration flexibility: 6/10
• Talent availability: 8/10
• Legal friction: 6/10
• Scaling potential: 7/10

The Philippines has long been a leader in customer support, BPO, and back-office operations. High English proficiency and strong service orientation make it a dependable choice for distributed operational teams.

Special Mention: Saudi Arabia’s Surge in 2025

Saudi Arabia now deserves a spotlight of its own. According to the 2025 StartupBlink Global Startup Ecosystem Index, it was the fastest-growing country for startups in 2025, climbing 27 spots and posting a growth rate of more than 200%.

This leap has been driven by sustained government investment under its Vision 2030 initiative – programs like the National Technology Development Program have fuelled infrastructure build-out, funding and founder incentives. The capital, Riyadh, led the charge with a +134 % growth rate in its ecosystem.

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The Rise of Global Workforces and Distributed Hiring

The location of your headquarters still matters because it shapes your legal structure, tax setup, and how investors view your company. But it’s also important to consider the impact of your hiring strategy on the performance of your startup.

Here’s what the global workforce looks like today:

• Roughly one-third of new roles now include some form of remote work, with 24% of U.S. job ads listed as hybrid and 12% listed as fully remote in Q2 2025.
• Flexible work is now the preferred model for the majority of professionals globally – most workers actively prefer hybrid or remote setups over traditional office-only roles.
• Cross-border hiring keeps accelerating, with international recruitment increasing by an estimated 30–42% over the past year.
• The market for cross-border workforce and migration solutions reached around $4.26 billion in 2024, reflecting strong demand for compliant global hiring.
• On global employment platforms, more than 80% of workers are now remote, and companies are increasingly hiring within similar time zones to keep collaboration smooth.

For startups, this means two decisions that once had to be made together – where to incorporate and where to hire – are now separate. You can choose a headquarters based on efficiency and investor confidence, and build your team wherever the best talent is.

Founders increasingly follow a pattern like this:

1. Incorporate in a country known for strong legal frameworks or investor familiarity (such as Singapore, Estonia, the UK, or Delaware).
2. Build product or engineering in talent-rich, cost-effective markets like Poland, India, or Brazil.
3. Hire customer support or operations in markets like the Philippines, Mexico, or South Africa for time-zone alignment and service expertise.
4. Use global payroll and EOR infrastructure to avoid setting up local entities, manage compliance, and keep hiring fast.

At Playroll, we see this mixed model across nearly every high-growth team we support. Startups decide where they want to be legally based – then layer in hiring markets that optimise cost, skills, time zones, and compliance. It’s become the new default for building modern, global-first companies.

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Hire Anywhere, No Entity Required with Playroll

No matter where you decide to base your startup, you don’t have to limit your team to that one country. With Playroll, you can hire in 180+ markets without setting up local entities or getting buried in compliance work. That means you can move faster, onboard talent wherever you find it, test new markets without long-term commitments, and run global payroll confidently from day one.

Where you incorporate will shape your early operations – but where you hire will shape your growth. If you want the freedom to build the best team for your product, not just the best team within your borders, ours will give you the infrastructure you need to do exactly that. Wherever you choose to start, we’re built to help you scale globally with far less friction than traditional expansion.

Book a demo with our team and see how we can help your startups scale globally.