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Every year, over 1 trillion USD is distributed around the world in a form of foreign direct investments. Investments coming from foreign investors and entrepreneurs are of significant value to the country and are considered as a sign of healthy economic, political and legislative environment. When it comes to investing your money, some countries are simply better than others. It depends on numerous factors, such as the overall economy and growth opportunities of the country, political stability, taxation and overall legal system, the complexity of company formation, bank account opening and workforce.

In this article, we will summarize three jurisdictions in terms of benefits and other features crucial for foreign investors. These countries have already proven to be able to attract multinational businesses and other investments, but when it comes to choosing the right place for your investments each country is different and might be better than others in one or more factors.



Singapore
The first country to analyse is Singapore as it takes the 2nd place among the best countries to invest in and the 15th place among the best countries in the world in the US News Best Countries Ranking developed in cooperation with its international partners.

Located in Southeast Asia, Singapore is a bustling metropolis and a home to one of the busiest ports in the world. As one of the four economic tigers of Asia, the country has experienced an impressive growth in the recent past due to efficient production and manufacturing practices and innovations in pharmaceutical and electronics industries. High GDP per capita and low unemployment place Singapore among the wealthiest countries in the world.

Due to its impressive growth, along with growing immigration Singapore attracts best professionals for its workforce. The country offers cultural diversity and with four official languages is an important gateway for international trade.
Corporate tax rate is 17% but can be reduced if taking advantage of numerous government subsidies, incentives and other schemes.
Legal system of Singapore is recognized for its integrity, efficiency and fairness making the country better than many others as a place for starting and operating a business. World Bank group has recognized Singapore’s political and regulatory environment as the most business-friendly in the world.
Other factors:
Least corrupt country in Asia;
Best IP protection in Asia;
Most popular country for arbitration in Asia.

United Arab Emirates
The United Arab Emirates or UAE is listed as the 22nd best country in the world and is not mentioned among the best countries to invest in according to the ranking mentioned above.

Before discovering oil in the middle of the 20th century, UAE’s economy was mainly based on fishing and pearl industries. The country experienced a rapid growth and overall transformation along with the beginning of oil exports in the 1960s. Nowadays, the country’s GDP can be compared with those of leading European countries and World Economic Forum has named UAE as the most competitive place in the Arab world.

When establishing a business in UAE, foreign investors are able to choose between offshore or onshore registrations depending on which suits better for the business nature and planned activities. Onshore registration means that the investor establishes a business presence in the UAE mainland. Meanwhile, offshore registration typically refers to a business presence in one of the free trade zones of the UAE.
The UAE does not impose a corporate income tax on a federal level. However, most of the Emirates have some taxation in place for corporate income and can reach even 55% for certain industries. In practice, corporate income tax is mainly imposed on gas and oil companies as well as branches of foreign banks.
Other factors:
UAE is among the Gulf’s most liberal places with legal system allowing the freedom of religion;
No sales tax or VAT, but with plans to introduce in the future;
In addition to traditional banking, recently Islamic (or sharia-law compliant) banking has witnessed a tremendous growth.

Hong Kong
Hong Kong is a special administrative region of China. While Hong Kong is often considered as a separate entity from China, it is not a country and therefore enters all lists and rankings under the name of China. China takes 26th place among best countries to invest in and 20th place among best countries in general.

Hong Kong’s legal system is characterised by the strict adherence to principles and the rule of law. It operates a free trade economic system and promotes minimal government interference in most sections of the economy. This reflects on the small number of tariffs and duties on traded goods and therefore it is a better place for investments than other parts of China.
Foreign investments are attracted by promoting a favourable investment climate with low taxes, few restrictions and additional incentives to encourage investments. Corporate profits tax rate is 16.5% with a possibility to waive 75% of the tax. There is no tax levied on dividends.
Company incorporation is a simple and fast-forward process. All applications for company incorporation also include an application for the business registry. The application can be submitted online and the processing generally takes one hour (as opposed to four days if the application is submitted in hard copy).

Italian government has introduced Value added tax (also known as VAT) back in year 1972, having a local name in Italian “Imposta sul Valore Aggiunto (IVA)”. Italian officials have also decided to introduce the VAT directives and other initiatives developed by the European Union, where Italy is one of the founding members.

The Italian VAT regulations are can be found in the VAT laws and other legal acts, which are constantly backed up by judicial precedents. Local tax office also develops and introduces Administrative Doctrines, containing different general guidelines on a daily VAT application. The value added tax system is under supervision of the Italian Ministry of Finance.

As the common European Union VAT regulation states, all companies performing trade on the territory of Italy and supplying goods or services subjected to taxation, must comply with the local tax legal regulations. The latter have included the obligations to apply for the local VAT number, meet all requirements of the Italian VAT regulations as well as fill and submit VAT reports and other declarations on a regular basis.

Cases in which a company must register Italian VAT
Whenever a foreign, non-resident company is selling goods or rendering services, in this case it can face the legal requirement to apply at the tax office in the same manner as a local tax payer and acquire an Italian VAT number. Under the following circumstances a company may be obliged to acquire Italian VAT number:

Importing goods into Italy, however, in case the client has Italian VAT number - the supplier is allowed not to estimate local VAT;
Purchasing and trading goods on the territory of Italy, provided the supplier and customers aren’t Italian company with a local VAT number;
Provision or acceptance of intra-community supplies, or receipt of goods as acquisitions from other European Union member states;
Selling goods to individual consumers using the internet, are subjected to the local remote selling registration threshold;
Storing goods in a consignment warehouse on the territory of Italy for the purpose of supplies in Italy or, alternatively, in the EU;
Charging admission and entry fees to live events or exhibitions on the territory of Italy;
E-commerce transactions, provided the goods are sold to the Italian consumers online.
Starting from year 2010, there are almost no situations in which a non-resident VAT number registration is required in order to provide services on the territory of Italy. Instead, the Italian customer records the transaction under the reverse charge mechanism.

Keep in mind that providers of digital, broadcasting or telecommunication services directly to the Italian consumers only have to apply for VAT number in one of the European Union member states according to the MOSS scheme, in order to file a single return covering all 28 member states.

Basic Italian VAT information
Below you can see basic information regarding Italian value added tax.

Standard VAT Rate: 22%
Reduced VAT Rate: 4%, 10%
Registration Threshold Distance Selling: 35,000 €
EU VAT number format: IT99999999999
VAT returns
The yearly VAT return and the Annual Communication of VAT Data must be submitted to the local tax administration. No monthly – quarterly periodical VAT returns have to be submitted. The Annual Communication of VAT Data has to be submitted only by digital ways of communication during February. The yearly VAT return has to be submitted exclusively by digital ways of communication by 31st September and has to be filed together with the corporate tax return.

The development of telecommunications and economic globalization have made it possible for interested investors to set up companies all over the world. With proper research, financial investment and legal backing, business ventures can be safely incorporated in almost any country in the world. Building an international business used to be a complicated entrepreneurial venture, but today it is commonplace with the help of experienced legal and business advisors.

The advantages of founding a company abroad are as numerous as they are obvious. Many countries offer specific locational advantages, ranging from natural resources and well-established infrastructure to beneficial laws and regulations that encourage growth in a particular industry. Likewise, it can be difficult to start a business or an acquisition in your own country due to adverse situations: political or regulatory environment, lack of resources and more. In this situation, it makes sense to consider an overseas option that offers greater opportunities for growth, development, and success.

Company registration in the Solomon Islands
When starting a business in the Solomon Islands, an interested investor must conduct due diligence on legal procedures, international regulations and sufficient investment for success. It is crucial to understand cultural, social and political factors that influence starting and growing one's business. Failure to do so may result in unintended consequences. Poorly researched and toneless international launches often end in disaster as time, money and energy is wasted due to poor planning.

Contact us for additional information on incorporating a company within the Solomon Islands jurisdiction.

Legal Documents
Every country in the world presents its own intricate challenges when it comes to starting, developing and maintaining a business. Owners, financiers and investors must make these commitments with the support of a knowledgeable and experienced legal team. Only someone with in-depth knowledge of local and international corporate law will be able to set up an overseas business while avoiding the pitfalls that plague many new businesses.

Additionally, smart business people can consider ways to invest in foreign companies without actually starting their own businesses. In these situations, it is still beneficial for the investor to partner with a knowledgeable global economics and litigation advisor. International investments create a truly diverse portfolio that offers growth opportunities that were unthinkable decades ago.

Potential investors, venture capitalists and entrepreneurs should consider the existing infrastructure in the Solomon Islands when planning to start a new business. While extensive infrastructure and systems can help make the process of starting a business a smooth one, it could also represent market saturation and reduced growth potential. On the other hand, a lack of infrastructure is often a major obstacle to growth; However, the lack of infrastructure points to a clear market opening for a creative and efficient new business.

The currency of the country is Euro. The symbol used for this currency is €, abbreviated to EUR. 5.5% of the country's population is unemployed. The total number of unemployed in Austria is 481,350. Austria exports around 165.6 billion US dollars a year and imports around 167.9 billion US dollars. The country's Gini index is 26.3. Austria has a Human Development Index (HDI) of 0.881. The Global Peace Index (GPI) for Austria is 1.198. Austria has a public debt equal to 57.4% of the country's gross domestic product (GDP) as estimated in 2012. Austria is considered a developed nation. A nation's stage of development is determined by a number of factors including, but not limited to, economic prosperity, life expectancy, income equality and quality of life. The country's main industries are construction, machinery, vehicles and parts, food, metals, chemicals, lumber and wood, paper and cardboard, communications equipment and tourism.

The total gross domestic product (GDP) calculated as purchasing power parity (PPP) in Austria is 402 billion US dollars. Every year, consumers spend around $230,783 million. The ratio of consumer spending to GDP in Austria is 61%, the ratio of consumer spending to the world consumer market is 0.54. Corporate income tax in Austria is 25%. Personal income tax ranges from 0% to 50% depending on your specific situation and income level. VAT in Austria is 20%.