Best Countries to Register a Company in 2025: Low Taxes and Friendly Compliance Overview
Where to register
a company in 2025
A comparison of the best jurisdictions
by taxation
and compliance
by taxation
and compliance
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Where to register a company in 2025
This is a key question for entrepreneurs launching international ventures, tech startups, financial platforms, holding structures, or other legal entities abroad. In 2025, choosing the right jurisdiction requires a thorough analysis of tax burdens, bank account accessibility, compliance requirements, and the overall reputation of the jurisdiction.
In this article, we compare some of the most in-demand destinations: Hong Kong, Singapore, Lithuania, Cyprus, the United States, as well as classic offshore jurisdictions such as Belize, Panama, and the Seychelles.
In this article, we compare some of the most in-demand destinations: Hong Kong, Singapore, Lithuania, Cyprus, the United States, as well as classic offshore jurisdictions such as Belize, Panama, and the Seychelles.
Why choosing the right jurisdiction matters
When deciding where to register a company, it's essential to understand that the jurisdiction impacts taxation, bank account opening, licensing opportunities, access to international settlements, and partner trust. In 2025, this decision is especially critical due to increasing global oversight, automatic exchange of information (CRS), stricter KYC/AML policies, and rising compliance requirements from banks.
Top 6 jurisdictions for business registration in 2025
Hong Kong
- Taxation: 8.25% on the first HKD 2 million in profits, then 16.5%. Offshore income (earned outside Hong Kong) may be exempt from taxation if the structure is properly set up.
- Compliance: High level. Annual reporting, audits, and the appointment of a director are mandatory. All companies undergo mandatory checks on substance and source of funds.
- Banking: Local banks have tightened their requirements, but integration with fintech solutions is possible.
- Advantages: A reputable jurisdiction, attractive for B2B exports, trade with Asia, and digital services.
- Disadvantages: Not suitable for unprepared clients; professional guidance is strongly recommended.
Singapore
- Taxation: The standard corporate tax rate is 17%, but the effective rate can be reduced through various incentives and exemptions. There is no tax on dividends or capital gains.
- Compliance: Strict but predictable. A local resident director is required. Annual audits are mandatory once certain thresholds are exceeded. KYC procedures are effective.
- Banking: Among the best in the world, with a high chance of account opening for transparent corporate structures.
- Advantages: Top jurisdiction in Asia, excellent reputation, strong access to investors.
- Disadvantages: High maintenance costs and real presence requirements.
Lithuania
- Taxation: Corporate income tax is 15%. A reduced 5% rate is available for small businesses under specific conditions. VAT is 21%.
- Compliance: Aligned with EU standards. Annual reporting is mandatory, but the regulatory framework is clear and accessible. Physical office not required, although substance is encouraged.
- Banking & EMI: Advanced fintech ecosystem with easy access to local and European EMI institutions, making Lithuania popular among startups and crypto companies.
- Advantages: EU member, business-friendly environment, digital infrastructure, support for new ventures.
- Disadvantages: Traditional banks increasingly require physical presence in the country.
Cyprus
- Taxation: 12.5% – one of the lowest corporate tax rates in the EU. Capital gains and dividend income may be exempt if certain conditions are met. VAT rate: 19%.
- Compliance: Moderately strict. Annual reporting and audit are required. Substance is strongly recommended when working with European banks.
- Banking: After recent reforms, banks operate reliably but have tightened due diligence checks.
- Advantages: Common law system (UK law), double tax treaties, strong reputation for IT and holding structures.
- Disadvantages: Relatively high cost of annual maintenance when physical presence is required.
USA
- (LLC, C-Corp) Taxation: Varies by state. For example, an LLC in Wyoming or Delaware may be exempt from federal tax if it has no U.S. income. A C-Corp is taxed at 21%.
- Compliance: Fast registration, but banks require enhanced KYC. Participation in FATCA, but not CRS – this attracts non-residents.
- Banking: Accessible, but requires SSN/ITIN or a local resident involved. Alternative – payment platforms.
- Advantages: Strong business reputation, ability to accept payments in the U.S., ideal for startups.
- Disadvantages: Need to monitor tax residency and interact with the IRS.
Offshore Jurisdictions: Belize, Panama, Seychelles
- Taxation: 0% on income earned outside the jurisdiction. Tax exemption is possible when used as a holding or transit structure.
- Compliance: Simple, but depends on the registered agent. CRS applies, but oversight is typically lighter. Annual reporting is often not required (varies by country).
- Banking: Few banks work with offshore entities; EMI services are more commonly used.
- Advantages: Minimal requirements, low cost, fully remote setup.
- Disadvantages: Limited access to banking and payment solutions; may be restricted in B2B sectors.
How to choose a jurisdiction in 2025
When choosing where to incorporate in 2025, it's important to consider:
- Taxes: Not just the rate, but also opportunities for optimization, exemptions, and incentives.
- Compliance and Reporting: Your ability to meet KYC, substance, and audit requirements.
- Access to Banks and EMI: Where you can realistically open an account and process payments.
- Country Reputation: Impacts trust from counterparties, payment providers, and partners.
- Business Goals: Trade, consulting, IT, or licensed activities – each sector requires the right jurisdiction.
Registering a business in 2025 is a strategic decision that must take into account not only taxes, but also access to banking, the level of regulatory oversight, settlement options, and future integration with licenses, residency programs, or other legal instruments.
If you're unsure where to incorporate in 2025, reach out to our team – we'll help you choose the optimal jurisdiction, handle company registration, open a bank account, and set up the necessary infrastructure – all in one seamless process.
If you're unsure where to incorporate in 2025, reach out to our team – we'll help you choose the optimal jurisdiction, handle company registration, open a bank account, and set up the necessary infrastructure – all in one seamless process.
Frequently Asked Questions
Everything you need to know before starting a business
The choice depends on your business model, tax strategy, access to banking, substance requirements, and the purpose of the company. If you operate in IT, consulting, trade, or finance – each sector has its optimal jurisdictions. In 2025, it’s especially important to consider the country’s reputation, compliance level, and compatibility with licenses or residence permits.
Popular low-tax jurisdictions include Lithuania (from 5% under certain conditions), Singapore (effectively from 4% with incentives), Hong Kong (0% on foreign-sourced income), and offshore jurisdictions like Belize or Panama (0% on external income). However, it’s important to assess not just the tax rate, but also optimization opportunities, exemptions, and access to tax treaties.
Top recommendations for IT and startups include Singapore (access to investors and Asian markets), Lithuania (developed fintech ecosystem, no physical office required), and the U.S. (flexible LLC structure and payment systems). These countries offer business-friendly environments, support for digital services, and favorable regulation.
Offshore jurisdictions (Seychelles, Panama, Belize) offer full tax exemption and remote setup, but often face limitations with banking and payment services. European jurisdictions (Cyprus, Lithuania) provide better reputations, business support, and compliance with EU standards. The choice depends on your business goals and acceptable level of oversight.
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Popular jurisdictions
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