10 Best Countries for Digital Nomads to Register Their Company

The rise of digital nomads can be witnessed during the COVID-19 pandemic due to travel restrictions and remote working.

The quick adoption of technology has been the key factor in this rise, making digital nomadism even more free and flexible.

It has also been predicted that the number of digital nomads will increase to one billion by the year 2035.

This article will outline what to consider when selecting a country and list the 10 best countries to register your digital business.

What Is a Digital Nomad?

A digital nomad is an individual with a location-independent job that is usually conducted online through the use of telecommunication technologies.

They usually work remotely from a different country than the country where their business is registered.

The most common reason why people opt for this to earn a living is due to flexibility and financial independence.

Examples of digital nomads taking advantage of online businesses include entrepreneurs, bloggers, writers, developers, SEO and IT consultants, and digital marketing specialists.

What Should I Consider When Selecting the Best Country?

When deciding which country is best to register your business as a digital nomad, you need to examine your business and assess whether the country is suitable for the kind of business you have.

To do so, you should keep the following questions in mind:

• Do you have to pay tax on the income earned in the country your customers and suppliers live in?
• Do you have to comply with any Controlled Foreign Corporation rules that require you to disclose your banking information which could potentially impact your tax liabilities?
• Is there a Double-Tax Agreement between the company country and your resident country protecting you from getting taxed twice on your income?
• Is the country politically and economically stable?
• Can you use an established, recognized payment aggregator to process payments to and from the company internationally?

Best Countries to Register Online Businesses

Below are 10 of the best countries to set up your new company.

1. Hong Kong

The number of digital nomads setting up their businesses in Hong Kong has rapidly increased over the last few years due to the country's numerous tax advantages.

The tax benefits include 0% income tax on offshore companies compared to the 16.5% income tax rates for domestic companies.

Hong Kong also has a great pro-business environment and low barriers to entry, which makes it extremely easy for business registration. 

Moreover, there are fewer restrictions on foreign businesses than in most countries, along with low audit costs, no sales tax, and no CFC rules to comply with.

Additionally, capital gains and dividends received are, in most cases, tax-exempt.

Digital nomads also benefit from access to the Chinese market due to the Closer Economic Partnership Agreement between Hong Kong and China.

Lastly, the country has many approved payment aggregators, such as PayPal and Stripe.

2. Singapore

Singapore attracts strong trade and investment opportunities due to the number of benefits of registering a digital business.

Firstly, the country offers numerous tax benefits that are ideal for a digital nomad.

This includes several tax incentives for companies, no corporate gains tax, and start-ups not required to pay some taxes for the first three years of business.

Additionally, the country offers a convenient company incorporation process, a highly skilled workforce, a wide range of banking facilities, a large market for investors, and a stable economy with a higher GDP than most developed countries.

3. Malta

Registering your business as a digital nomad in Malta is an attractive opportunity as the corporate tax rate can go down to 5% after applying for all the grants and tax relief programs offered.

Additionally, digital nomads can benefit from the multiple banking opportunities and trade agreements with the EU.

Malta is also the cheapest country to get transferable business licenses in the European Union (EU).

Lastly, there are no exchange controls imposed on companies registered in Malta.

4. Andorra

Andorra's new digital nomad law gives rise to greater investment opportunities, sustainability, and innovation for remote and digital businesses.

Not only is Andorra going through a major digital transformation, but the country also offers political, economic, and legal security alongside a competitive and internationally approved tax system which puts the country at a huge advantage compared to other best European countries. 

Additionally, when registering your business as a digital nomad in Andorra, you do not need to have any local shareholders, which allows the company to be completely foreign-owned.

5. United Kingdom

The UK is one of the most advanced e-commerce markets in Europe and has attracted many internet entrepreneurs setting up their e-commerce business in the country.

E-commerce is one of the most thriving industries where a business can function completely remotely and is not impacted by the pandemic. 

The company registration process in the UK is also quite simple, with a fee of as little as 12 pounds giving you access to a competitive global market.

You can also set up remote business bank accounts through any payment service provider.

The UK's tax authorities also place a comparatively lower tax burden on the owners and directors of a limited company than other countries in Europe.

Additionally, the UK is a signatory to multiple double taxation treaties, which prevent you from getting taxed on your income twice.

6. The British Virgin Islands 

The British Virgin Islands are a long-standing established offshore center and have also been recognized as the best country to incorporate your company compared to any other offshore jurisdiction, especially if you are an internet entrepreneur.

A major benefit of registering a company in the British Virgin Islands is that international businesses can be paired with corporate bank accounts in another reputable jurisdiction.

These jurisdictions include Hong Kong and Singapore.

Most importantly, nearly 41% of offshore companies worldwide have been incorporated in the British Virgin Islands, which speaks volumes of the country's reputation and business confidence.

Things are changing in the BVI, however.

Check out these 4 reasons why you might not want to register in the British Virgin Islands.

7. Denmark

Denmark is one of the easiest countries in Europe to register your business.

The country offers great flexibility, allowing you to easily change your employment structure, which ultimately reduces the costs of scaling your business functions up or down.

This makes Denmark a great option for those within the consultancy and coaching industries due to the flexibility with hiring and firing.

Moreover, the incorporation process only takes a few days, and there are no residential requirements for company management, such as the CEO and company shareholders and directors.

Lastly, registering your business in Denmark as a digital nomad offers you flexibility and many tax benefits.

8. Norway

The biggest advantage of setting up an online business in Norway is that a corporate bank account and a business can be incorporated completely remotely, eliminating the requirement to travel to Norway.  

It is a common misconception that because Norway is not a part of the European Union, the country is disadvantaged.

However, the country still holds unrestricted access to the EU market as a member of the European Economic Area (EEA).

Moreover, all communication with the government can be done digitally.

Additionally, it is one of the wealthiest and most financially, economically, and politically stable countries globally, taking into account the COVID-19 pandemic.

9. Belize

Belize has been recognized as one of the most tax-friendly jurisdictions globally that offers asset protection through offshore banking. 

The numerous benefits of registering a company as a digital nomad are guaranteed privacy and confidentiality, financial stability, and international banking.

It only takes 1-2 days to register a company in Belize, along with a remote corporate bank account.

10. New Zealand

New Zealand is also considered to be one of the easiest countries to conduct business activity.

The number one reason why is that business registration only takes one day, and registering property takes two days.

Additionally, the labor costs are low, although the workforce is highly qualified. 

The tax benefits include no payroll, capital gains tax, or social security tax, allowing you to retain profits.

Despite the country not being assumed as a traditional offshore center or a specific country to register your business as a digital nomad, it still provides all the advantages of an offshore jurisdiction. 

Additionally, New Zealand is not perceived by the OECD as a ‘harmful tax jurisdiction' as it does not have a negative business reputation in terms of offshore banking.

There are also no foreign exchange controls in New Zealand, except for approval for specific investment types.

Final Words on Registering Online Businesses

Here is what you should keep in mind:

• A digital nomad is an individual with a location-independent job that runs business operations through the use of telecommunication technologies.
• Where you register your company as a digital nomad is extremely important and depends on the type of business you have.
• When it comes to company registration, there are a number of factors to consider as a digital nomad.

Register your company in Hong Kong with Air Corporate and get to business quickly so you can start your nomadic journey.

Focus on your digital business. We take care of the rest.