According to the Innovators Business Environment Index 2026, the USA and Singapore are the #1 and #2 easiest business countries. If you are thinking about where to incorporate your next company or restructure an existing one then this is the data you need.
The Innovators Business Environment Index (IBEI) 2026, published by StartupBlink, evaluates 125 countries across more than 30 indicators from regulatory friction and access to capital, to taxation, digital infrastructure, and global mobility. Unlike rankings that focus on outcomes or startup density, the IBEI measures what actually matters to an entrepreneur before and during the process of building a business: how easy it is to start, how profitable it is to operate, and how reliable the system is.
The United States claimed first place globally and Singapore took second place and led all of Asia-Pacific. The United Kingdom came third.
If you are looking for a jurisdiction where the infrastructure, legal system, tax framework, and business culture are all aligned in your favour, these two countries represent the gold standard.
The United States earns its top position through sheer breadth of advantage. No other country combines the depth of its capital markets, the scale of its consumer base, the flexibility of its legal structures, and the global credibility of its incorporated entities in the same way.
For an entrepreneur, whether based in the US or outside it, incorporating an American company opens doors that few other jurisdictions can match: investor access, payment processor acceptance, brand credibility, and the ability to operate within the world's largest economy.
One of the most underappreciated advantages of the US is just how straightforward it is to establish a company remotely. Foreign nationals do not need to be US residents or citizens to form an LLC or corporation. States like Delaware and Wyoming have built global reputations as incorporation-friendly jurisdictions, and the process can often be completed in a matter of days.
Delaware is the preferred choice for companies seeking institutional investment. More than 60% of Fortune 500 companies are incorporated there, largely due to its sophisticated Court of Chancery, a specialist business court with a well-developed body of corporate law that gives investors and founders alike a high degree of legal predictability.
Wyoming has become the leading choice for international entrepreneurs seeking simplicity and tax efficiency at the state level. Wyoming charges no corporate or personal state income tax, has no franchise tax, and imposes minimal reporting requirements. Annual fees start from as little as $60. It also offers strong privacy protections, LLC members are not required to be publicly disclosed.
The federal corporate income tax rate in the United States is 21% for C-Corporations, unchanged since 2018. For LLCs, the default treatment is pass-through taxation: income is reported on the owners' personal returns rather than at the corporate level, which can significantly reduce the effective tax burden for smaller businesses.
State-level taxes vary considerably. Wyoming and several other states levy no state corporate income tax at all, making the choice of incorporation state a meaningful tax planning decision in itself.
For non-resident founders, the US tax system requires careful navigation, particularly around Form 5472 filings, withholding obligations, and treaty provisions but with the right structure, the combination of federal rate competitiveness, state-level flexibility, and the US's extensive network of double tax treaties makes this one of the most tax-efficient environments in the world for internationally mobile businesses.
It is also worth noting that the US does not require a physical US address for the owner, only a registered agent within the state of incorporation. This makes the US a genuinely accessible option for global entrepreneurs who want the prestige and infrastructure of an American entity without needing to relocate.
Singapore's position at second globally is not an accident, it is the result of decades of deliberate policy-making designed to attract international capital and talent. The country leads the IBEI in eight separate sub-parameters, scores in the top 25% across approximately 90% of all indicators, and ranks first globally for market perception of its business environment.
Beyond the rankings, Singapore is consistently recognised across multiple major indices. In the Global Innovation Scorecard by the Consumer Technology Association, Singapore recently overtook the United States to claim the top spot. In the Global Innovation Index 2024 (WIPO), Singapore leads the world in 14 out of 78 indicators, more than any other nation.
For internationally active businesses, Singapore offers something rare: an environment that is simultaneously easy to enter, highly credible, and extraordinarily tax-efficient.
Setting up a private limited company (Pte. Ltd.) in Singapore is straightforward. The process is handled digitally through the Accounting and Corporate Regulatory Authority (ACRA) and can be completed in as little as one to three days. A minimum paid-up capital of just SGD 1 is required. There is no requirement for shareholders or directors to be Singapore residents, though at least one locally resident director is required, a condition easily met through nominee director services.
Singapore's legal system is based on English common law, operates in English, and is regarded as one of the most transparent and predictable in Asia. For foreign entrepreneurs, this dramatically reduces the friction of entering the market compared to other regional hubs.
This is where Singapore becomes genuinely compelling for internationally structured businesses.
Singapore operates on a territorial tax system. Companies are taxed only on income that is sourced in Singapore. Foreign income, including dividends, branch profits, and service income earned outside Singapore is generally not taxed at all, provided it is not remitted into Singapore.
When foreign income is remitted to Singapore, it remains exempt from additional Singapore tax if it has already been subject to tax in the source country at a headline rate of at least 15% under the Foreign Sourced Income Exemption (FSIE) scheme governed by Section 13(8) of the Income Tax Act.
In plain terms: a Singapore-resident company that earns its revenue internationally can, in many cases, retain those profits without them being subject to Singapore corporate tax. This is one of the most powerful features of Singapore's tax regime and a major reason why it is a preferred holding company and operational hub for businesses with global revenue streams.
The headline corporate tax rate is 17% but the effective rate paid by most companies is significantly lower, thanks to a combination of factors:
Partial Tax Exemption available to all companies:
75% exemption on the first SGD 10.000 (about EUR 6.700) of chargeable income
50% exemption on the next SGD 190.000 (about EUR 128.000) of chargeable income
Start-Up Tax Exemption for qualifying new companies in their first three years:
75% exemption on the first SGD 100,000 (about EUR 67.300) of chargeable income
50% exemption on the next SGD 100,000
CIT Rebate for YA 2026, a 50% rebate on corporate tax payable, capped at SGD 40,000 (about EUR 27.000), with a minimum cash grant of SGD 1,500 (about EUR 1.000) for eligible companies that employed at least one local staff member in 2025.
No capital gains tax. Gains from the disposal of shares, real estate, or other capital assets are not subject to tax in Singapore. For investment holding companies and founders planning an eventual exit, this is a significant structural advantage.
No withholding tax on dividends. Singapore operates a one-tier tax system, meaning dividends paid to shareholders are not subject to further withholding tax at source regardless of where those shareholders are resident.
Together, these features mean that the Ministry of Finance reports effective corporate tax rates frequently well below 17% particularly for early-stage companies and those with large components of qualifying foreign-sourced income.
Singapore provides clear, well-defined routes for foreign founders who wish to be personally present. The EntrePass is designed for entrepreneurs launching innovative startups. The Tech.Pass targets established technology professionals and founders. The Global Investor Programme provides residency options for significant capital investors.
English is Singapore's working language. Its banking system is one of the most sophisticated in Asia. Its position as a hub between European, Middle Eastern, and Asian time zones gives it a practical connectivity advantage that few jurisdictions can replicate.
United States | Singapore | |
IBEI 2026 Rank | #1 | #2 |
Corporate Tax Rate | 21% federal (0% possible at state level) | 17% headline (effective rate often lower) |
Capital Gains Tax | Yes (varies) | None |
Foreign Income Tax | Worldwide basis for corporations | Territorial foreign income generally exempt |
Dividend Withholding Tax | Applies in certain structures | None (one-tier system) |
Time to Incorporate | 1–5 days (varies by state) | 1–3 days |
Non-Resident Founder | Permitted | Permitted (with local director) |
The answer depends on your revenue model, where your clients are, how you plan to grow, and where you are personally tax resident.
If your priority is access to US investors, US customers, or international credibility, a US entity, particularly a Delaware C-Corp or Wyoming LLC is typically the stronger choice.
If your priority is holding international income tax-efficiently, operating as a regional hub for Asia, or structuring a company that earns most of its revenue outside a single jurisdiction, Singapore's territorial system and foreign income exemptions deserve serious consideration.
For many international entrepreneurs, the optimal structure involves both a US entity for market-facing operations and investor relations, alongside a Singapore holding structure for international income and capital management.
This is precisely the kind of structural thinking that requires qualified legal and tax advice tailored to your specific circumstances.
Ready to explore whether the US, Singapore, or a combination of both is the right fit for your business? Book your free initial consultation today and find out which jurisdiction works hardest for your business.
