How to open a company abroad and start a business in another country

Many entrepreneurs seek to do so because they need to protect their assets, optimize their tax burden, and develop new markets, especially international ones. The United Arab Emirates is considered the most popular country because it is a logistical bridge between the European, Asian, and African continents. Taxes are relatively low there, and in free zones, they are often nonexistent. Business registration takes a few business days, and online registration takes about 15 minutes.

If the goal is to develop business in the EU, entrepreneurs often choose France and Spain. For entering European markets at minimal cost, Serbia and Montenegro are optimal choices. All of these countries offer simple business registration procedures and the opportunity to obtain a residence permit based on entrepreneurial activity.

Where to open a company abroad

The top countries for company registrations in 2025 are:

However, the number of registered companies does not necessarily indicate how in-demand they are among foreigners or how simple the process is. For example, many entrepreneurs from Eastern Europe would like to register a business in the UK. However, the complexity of the process and relatively high taxes force business immigrants to seek better options.

If you’re planning to start a business abroad, consider the following:

• The economic situation in the country;
• The jurisdiction’s reputation. Is it an offshore zone? Are there any sanctions against it?
• The ease of company registration: What steps are required? Can documents be submitted online? How long will it take?
• Regulations for foreign entrepreneurs: Is 100% ownership permitted, and what business structures are available?
• Company development costs;
• Taxes, licenses, and authorized capital requirements;
• The business environment: How easy is it to file reports and attract investment?
• Geographic location and the availability of free trade agreements (for those looking to enter the international market);
• Infrastructure and logistics development;
• Availability of support programs (especially important for startups and small businesses).

When it comes to business registration, the UAE is often seen as the go-to destination. The country offers a minimal tax burden, developed infrastructure for any type of business, and ease of registration and management. According to P4 experts, the United Arab Emirates is one of the best countries for doing business.

France and Spain are ideal for businesses looking to expand in the EU. They offer easy access to a broader market and allow for online applications. Those seeking a reduced financial burden may find Serbia and Montenegro to be suitable options, as corporate taxes are among the lowest in Europe and authorized capital requirements are minimal.

The UAE

Those planning to engage in a wide variety of activities, such as international trade, e-commerce, consulting, and processing and selling precious metals, may want to consider registering a business in the UAE. The UAE is considered an ideal location for entrepreneurs planning to start a company abroad since the country offers advantages in several areas:

• Full foreign ownership rights — you can own 100% of the company;
• Access to international markets: thanks to its geographical location, the country is considered a bridge between Europe, Africa, and Asia;
• Economic benefits: corporate tax is only 9%, and it is completely exempt in free economic zones (FEZs) or for incomes below USD 102,100;
• Ease of business registration — it only takes a few business days, and the online process takes just 15 minutes;
• Long-term residency for entrepreneurs: 5 years.

Where you register your company (on the mainland or in a free zone) determines the available business structures and the specifics of the process.

If you’re considering a mainland company, you can establish traditional structures there, such as a joint-stock company (JSC), limited liability company (LLC), partnership, branch, or holding company. A physical office is required. You can reserve a company name online through the Department of Economic Development website or mobile app of your specific emirate. Online company registration is available in the UAE. Use the Basher platform to register your company online. This platform brings together all the relevant authorities responsible for business licensing. This eliminates the need to travel to the Emirates to submit your company registration documents. However, you can also visit a customer service office in person.

Registering a company in a free zone is even easier, as free zone administrations (for example, DMCC in Dubai) typically offer complete business setup packages, along with online portals for registration and management. You don’t need a physical address, you can register with a virtual office. Acceptable corporate forms in free zones include Free Zone LLC (FZ LLC), Free Zone Establishment (FZE), and Free Zone Company (FZ Co).

Registering a company in the UAE with a residence permit:

• Choose a suitable business activity;
• Open a corporate account;
• Obtain an Emirates ID.

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Spain

Spain is a popular choice for businesspeople targeting the European market as well as partnerships in Latin America and Africa. The country’s logistics system includes 46 ports, some of which are among the largest in the world by cargo turnover:

• Valencia (serving the Mediterranean);
• Algeciras (a transshipment hub for Southern Europe);
• Barcelona (northeastern trade hub);
• Bilbao (with access to the Atlantic);
• Las Palmas is a gateway to Africa.

Spain is especially popular among startup founders. In the FT-Statista-Sifted 2024 startup hub ranking, Spain scored among the highest in Europe. Startup founders can expect reduced corporate taxes (15% instead of 25%), subsidies, and other government support.

The most popular corporate forms in Spain are JSC and LLC. In the latter case, authorized capital can be as low as EUR 1. The Commercial Registry website offers a name reservation feature, and you can register a company through the CIRCE online system, like a sole proprietorship. You only need to visit Spain to deposit the authorized capital and visit a notary. There is no need to register separately with the tax office because the administration automatically enters the information during company registration.

France

France is a popular destination for entrepreneurs looking to start a business abroad, integrate into a leading economy, and access the EU market. The country has a well-developed system of support for innovative businesses, including the state-run La French Tech initiative, which helps tech startups connect with each other and receive financial support.

The most popular corporate forms are the SARL, which is similar to an LLC, and the EURL, which is a single-member LLC. In both cases, there is no requirement for authorized capital; it can be as little as EUR 1. After completing the preliminary steps (renting an office, drafting the incorporation documents, appointing a director, and contributing the authorized capital), you can register a company in France online. You can submit the application yourself or delegate this task to a trusted person.

If you plan to develop a startup, you may be eligible for the French Tech Visa program. After receiving support from an accredited incubator, accelerator, research organization, or laboratory, you are eligible to apply for a residence permit for up to 4 years. A standard business residence permit in France is granted for 12 months.

Montenegro

Montenegro attracts entrepreneurs who want to start a business in a stable European economy while keeping the costs low. The overall tax rate is only about 22% here, compared to 36.5% in other Eastern European countries and 48.8% in Germany. Specifically, Montenegro’s corporate income tax rate is 9-15%. Labor costs are also lower. On average, Montenegrin employers pay their employees EUR 730 per month. Montenegro is often chosen by IT companies, as well as those planning to engage in real estate, tourism, and consulting.

The most popular corporate structure is the limited liability company (LLC), which requires a share capital of EUR 1. To register a business, you must apply to the Central Register of Entrepreneurs. Applications can be submitted in person or online. You can also request registration with the tax office simultaneously. The waiting period is only 4 days.

Serbia

Serbia is a candidate for EU membership and a member of CEFTA, an organization that includes Albania, Bosnia and Herzegovina, Montenegro, and other Central European countries. If you’re looking to register a company abroad in a European country with relatively low costs, Serbia is worth considering, as its corporate tax rate is 15%. Serbia is particularly popular among IT and outsourcing companies, as well as small manufacturing and agricultural businesses.

The most common legal entity is the limited liability company (LLC), which requires only EUR 1 of authorized capital. Such a company can only be registered through the online platform of the Business Registration Agency (BRA). Applications are processed within 5 business days. A tax identification number is assigned simultaneously with registration.

Sole proprietors can register their businesses online, in person at a designated agency, or by mail by sending documents to the BRA’s central office in Belgrade.

Obtaining a Serbian residence permit through company registration:

• Individual cost calculation;
• Collection and submission of documents;
• Turnkey residence permit processing;
• Guaranteed results under the contract.

Business structures abroad

The most common forms of business registration abroad are the Limited Liability Company (LLC), the Corporation, and the Sole Proprietorship. Rather than starting from scratch, foreign entrepreneurs planning to expand their operations create subsidiaries or representative offices.

An LLC is a structure in which the participants’ liability is limited to their contributions. The company has legal entity status, and the authorized capital may be minimal. In the UAE, this form is called a Free Zone LLC or a Mainland LLC, depending on whether it is in a free zone or on the mainland. In France, it is called a Société à Responsabilité Limitée (SARL).

A corporation (JSC) is a corporate form in which the authorized capital is divided into shares of a specified par value. The owners’ liability is limited to their contributions. However, the management structure is quite complex. In addition to an executive director, there is also a supervisory body and a board of directors. Typically, the law sets stricter requirements for authorized capital. For instance, in Spain, it must be at least EUR 60,000, whereas in Serbia, it is around EUR 25,600.

A sole proprietorship is a business established by one person who is liable for debts with all their assets. In Serbia and Montenegro, the preduzetnik example shows that registering a sole proprietorship doesn’t require drafting incorporation documents or creating authorized capital. It’s enough to apply to the registration authority. This form of business is known for its simple registration process, but its potential for raising capital is limited.

A subsidiary is an independent legal entity that engages in commercial activities. In contrast, a representative office is part of and financed by the parent organization. Typically, a representative office handles marketing, research, and other activities not directly related to transactions. The details of setting up and running these types of businesses vary by country. For instance, in France, a company is considered a subsidiary if another organization owns at least half of its capital, and a representative office cannot attract clients or hire salespeople because this constitutes commercial activity.

Company registration abroad: a step-by-step guide

The first step is to choose a country in which to locate your business. We discussed popular countries among foreign entrepreneurs above, but you will still need the help of specialists. Lawyers can help you choose the best option based on your plans and financial capabilities.

Company registration procedures vary by country. See below for a rough outline of the key steps.

Step 1. Document preparation

You will need to draft the charter and memorandum of incorporation, as well as provide information about the owners and managers, including ID cards and signature samples. You will also need to make appointment decisions for managers. You will also need a lease agreement for the premises and, if applicable, the relevant permits for the activity.

If you are starting a business, you must also obtain preliminary approval from the relevant organization, as is the case in Spain and France.

For sole proprietorships, the documentation is significantly shorter. For example, in Serbia, a valid passport and proof of payment of the state fee are sufficient. Depending on the specifics of the activity, additional documents may be requested.

Step 2. Registration with government agencies

Submit the application to the agency responsible for registering businesses and entering data into the Commercial Registry. Should an online service be available, the request is submitted electronically. Otherwise, it is submitted to the office of the competent authority where the company is located. In the UAE, for example, there are various options for in-person submission, including government service centers, Tasheel offices, and OnTime offices, as well as Customer Happiness Centers under the Department of Economic Development.

Step 3. Tax Identification Number

In many countries, such as France and Serbia, business registration is handled through a one-stop shop, and a tax identification number is automatically assigned upon company incorporation. In other countries, after entering the new business information into the government registry, you must personally contact the tax office for registration and obtain a special identification number. This number is required for reporting and paying mandatory fees.

Step 4. Bank account registration

Submit your business registration information, as well as information about the owners and management, to the chosen bank to open a corporate account. Popular banks in the UAE include Emirates NBD, First Abu Dhabi Bank (FAB), and Mashreq Bank, for example. In France, entrepreneurs choose BNP Paribas, Crédit Agricole, and Groupe BPCE. Spanish entrepreneurs prefer Banco Santander, CaixaBank, and BBVA. Popular banks in Serbia include Banca Intesa, OTP Banka Srbija, and UniCredit Banka Srbija. Popular banks in Montenegro include Crnogorska Komercijalna Banka (CKB), Erste Bank, and Hipotekarna Banka.

Remote company registration abroad

In the UAE, any mainland company can be registered online. Free zones usually offer the option of remote registration as well, but you should check with the administration of your specific free zone.

In Spain, you can usually register a company online through the Center for Information and Networks for Enterprise Creation (CIRCE). However, not all business types allow online registration. In any case, you must be in the country to complete the procedure.

France has a special electronic services portal from the National Institute of Industrial Property (INPI) for remote business registration, and Montenegro has an eFirma service. In Serbia, remote registration is also possible (and mandatory for legal entities). It requires a digital signature, which you can obtain in person from a local certification authority such as E-Smart Systems LLC, Serbian Post, or the Chamber of Commerce and Industry.

Online registration differs from an in-person registration in that you can submit your application from anywhere in the world. Simply fill out the form, following the instructions on the website, and upload scans of the required documents. Identity verification can be performed via video call. Your application will then be automatically sent to the authorized agencies that issue business permits.

Obtaining a residence permit through company registration

Registering a company in a specific country is the first step to obtaining a residence permit and relocating there. After completing your business registration, contact the embassy/consulate of your chosen country, or its immigration authority directly. The process varies depending on local laws.

The table below lists the validity periods of business residence permits in the countries mentioned:

Business management after registration

Regardless of the corporate structure, after registering a business, you need to set up accounting, submit financial statements, and pay taxes. Each country has its own rules. For example, France requires an annual inventory of assets and liabilities, as well as a journal, ledger, and description of accounting procedures.

Each country also sets its own mandatory tax rates. The basic corporate tax rate is 0-9% in the UAE, 25% in Spain and France, 15% in Serbia, and 9-15% in Montenegro.

Basic financial statements are submitted annually to the relevant authority. In Spain, for example, this is the Trade Register, and in Serbia, it is the BRA.

In many countries, management and accounting functions can be performed remotely, and mandatory fees can be paid online. The French INPI e-services portal, for instance, is designed not only for starting a business, but also for managing it. It allows users to submit requests for changes to registration data, file reports, and perform a number of other procedures. The APR service in Serbia offers similar functions. In Spain, interaction with the tax service (Agencia Tributaria) is online only; a login ID is all that is needed.

Common mistakes when opening a company abroad and how to avoid them

When opening a company abroad, it’s important to avoid mistakes, even when choosing a country. These mistakes can affect the speed of company registration, the tax burden, and other issues that may impact your business activities. It’s crucial to thoroughly review the current regulations and ensure nothing is overlooked. For instance, corporate tax in the UAE was recently introduced in June 2023, and in some cases, even companies in free economic zones (FEZs) are obligated to pay it.

Failure to submit reports and pay mandatory fees on time can result in penalties. Furthermore, the method of filing information must be chosen carefully. For example, in Spain, quarterly income tax returns for self-employed individuals differ depending on the method of income calculation.

One of the main reasons for account freezing is failure to comply with KYC (Know Your Customer) and AML (Anti-Money Laundering) standards. For instance, banks in the UAE regularly require clients to update their data. Lack of updated information and doubts about the origin of incoming funds can lead to account freezing. Additionally, individual entrepreneurs are advised to open a separate account for business operations. While this is usually not mandatory, exceeding the annual turnover limit on your personal account will result in a fine in France, for example.