Business Setup guide
Quick answer — where should a location-independent founder incorporate? Choose a company jurisdiction on three tests: where you will personally be tax resident, where the company will actually be managed (its place of effective management), and whether your home country's CFC rules will tax the profits anyway. A low headline rate only helps when all three line up. Banking access and setup cost then decide between the remaining options.
Your company has a tax residence even if you don't have a fixed home. That single fact is the starting point of every good international business setup. When you work from Lisbon in spring, Bali in winter and a co-living in Medellín in between, at least three tax systems can look at your income: the country where you are personally resident, the country where your company is registered, and any country where you actually work or take decisions.
The number of people in this situation is growing fast. Remote work turned millions of salaried professionals into potential location-independents, and many of them now freelance, run agencies or build software companies while moving between countries. Most were never taught how company law and tax residency interact. They find out when a bank freezes an account, a tax authority asks for a return, or a client refuses an invoice without a VAT number.
This hub brings together Heavnn's company setup guides for 50 jurisdictions. It is organised by the decision you are facing, not by the alphabet.
This hub is not designed for people employed locally in one country, permanent immigrants settled in a host country, cross-border commuters, or expats on a fixed local contract. Their situation usually involves one tax system and is better handled by a local accountant.
The right entity depends first on which of eight situations you are in. Each branch below has its own hub comparing the jurisdictions in it.
| Your situation | Typical entities | Tax model | Best for | Main catch |
|---|---|---|---|---|
| You want an EU company without living in a high-tax EU state | Estonian OÜ, Cyprus Ltd, Bulgarian EOOD, Hungarian Kft | Low flat rates or tax only on distributed profits | Freelancers and agencies with EU clients | The company can be pulled back to where you live and manage it |
| You hold a digital nomad visa in Southern Europe | Portuguese Lda, Spanish SL, Greek IKE, Italian SRL | Standard rates, sometimes combined with special regimes for new residents | People who already relocated | A company can conflict with special regimes or the visa itself |
| You want low tax near Europe but outside the EU | Swiss GmbH, Andorran SL, Serbian d.o.o., Georgian individual entrepreneur | From 1% on turnover to standard cantonal rates | Founders who want a European time zone | Eligibility limits and residency conditions |
| You are attracted by zero-tax hubs | UAE free zone company, Saudi LLC, Mauritius GBC | 0% personal tax; company tax depends on qualifying conditions | Founders ready to relocate | "Zero tax" rarely means zero for the company |
| You live in Asia-Pacific | Singapore Pte Ltd, Hong Kong Ltd, Thai Co. Ltd, Indonesian PT PMA | Territorial or remittance-based systems; ownership limits | Long-stay residents in Asian hubs | Foreign ownership and capital rules |
| You are drawn to Latin America | Panama SA, Paraguayan EAS, Uruguayan SAS, Colombian SAS | Territorial in some countries, worldwide in others | Founders seeking a territorial base | 183-day rules and banking due diligence |
| You want a US or offshore entity | US LLC, BVI business company, USVI company | Pass-through, zero-tax or incentive regimes | Founders needing USD rails or a holding | Filings in the US and treatment at home |
| You are leaving a high-tax country with a company | German GmbH, French SASU, Dutch BV, UK Ltd | Exit tax on shares, continued home taxation | Founders about to emigrate | Departure can trigger tax on gains never realised |
Explore each branch in depth:
Every international structure is judged on the same handful of rules, whatever the country. Understand these five and you will read every country guide on this site with the right questions in mind.
Most countries make you tax resident if you spend more than 183 days there in a year, but many also look at your permanent home, your family and your centre of economic interests. Some, like Mexico, can treat you as resident with far fewer days. Not being resident anywhere is rarely a stable position: banks and payment providers report your accounts under the Common Reporting Standard to the country you declare, and some countries keep taxing former residents who cannot prove a new residence.
A company is usually resident where it is incorporated, where it is managed, or both. If you take every strategic decision from a laptop in one country, that country can argue your foreign company is really resident there. Cyprus, Malta, the UK and many others use management and control as a residence test, so the same rule can also work in your favour when the board genuinely sits in the jurisdiction.
Even if your company stays foreign, a country can tax the part of its profit earned through a fixed place of business or a person habitually concluding contracts on its territory. A founder living and working in one place for most of the year is the classic way a PE appears.
Every EU country must apply CFC rules to companies that control low-taxed foreign entities. Many countries, including the US and Canada, also have rules that can reach individual shareholders, while the UK uses separate rules for individuals who transfer assets abroad. When a company you control pays little or no tax, your country of residence may tax its undistributed profits directly in your hands, especially passive income. A 0% jurisdiction can therefore become a 0% company with a fully taxed owner.
Several countries, including Germany, France, the Netherlands, Austria, Denmark and Canada, can tax unrealised gains on your company shares when you leave. Every bank, formation agent and payment provider will also run anti-money-laundering checks: identity, address, tax residency, source of funds and business model. A structure that cannot be explained simply in a KYC questionnaire will struggle to get a bank account.
Running costs vary far more than setup costs. Government registration fees are usually modest; what drives the annual bill is local directors, offices, audits, licences and visas.
| Branch | Typical setup cost | Typical yearly running cost | What drives the cost |
|---|---|---|---|
| EU hubs (Estonia, Bulgaria, Hungary, Romania) | €500–2,500 | €1,000–5,000 | Contact person or registered office, accounting |
| EU hubs with substance (Cyprus, Malta, Ireland) | €1,500–5,000 | €5,000–15,000 | Local directors, mandatory audit, office |
| Southern Europe relocation setups | €1,000–4,000 | €2,000–8,000 | Notary, accountant, local payroll |
| Gulf free zones | €3,000–12,000 | €3,000–12,000 | Licence, visa, flexi-desk, audit |
| Asia-Pacific hubs | €1,500–10,000 | €3,000–15,000 | Resident director, company secretary, paid-up capital |
| Latin America | €1,000–5,000 | €1,500–6,000 | Registered agent, local accountant |
| US LLC | €300–1,500 | €500–2,500 | State fees, registered agent, US filings |
| Offshore (BVI and similar) | €1,500–4,000 | €1,500–5,000 | Registered agent, substance filings, harder banking |
These are indicative ranges for a small, single-founder company, not quotes. Each country guide gives a detailed cost breakdown.
Your real tax rate is the company's tax plus the tax on getting money out, plus whatever your country of residence adds. A company that pays 0% but whose owner pays 40% on dividends at home is not a low-tax structure. That is why Heavnn always starts with your own residency before recommending a jurisdiction.
Good international setups are built in the same order every time: you first, then the money flows, then the entity, then the bank.
Yes. Most jurisdictions, including Estonia, Cyprus, the UAE, Singapore and US states, allow non-residents to own 100% of a company. Many require a local contact person, registered agent or resident director. Owning a company abroad does not change your personal tax residency.
There is no single best country. Estonia suits founders who reinvest profits, Bulgaria and Hungary suit those who distribute every year at a low flat rate, and the UAE suits founders ready to relocate there. The best choice depends on where you are tax resident and how you take money out.
Often, yes. Your country of residence taxes your salary and dividends, can apply CFC rules to low-taxed company profits, and may treat the company as its own resident if you manage it from there.
It is where the key management and commercial decisions of a company are actually made. Many countries and tax treaties use it to decide where a company is tax resident, regardless of where it was registered.
Not always. Self-employed status can be simpler and cheaper at lower income levels. A company usually makes sense when you need limited liability, want to reinvest profits, hire people, or work with clients who prefer to contract with a company.
Formation agents will happily sell you a company. Heavnn starts from the other end: where you will be taxed, then which structure works with it.
This guide is general information, not tax or legal advice for your situation. Figures are indicative as of October 2026.
