Best Countries to Expand Your Business Internationally

Global expansion can be a strategic move that helps you tap into the international market and reap potential benefits. This includes increased market reach and revenue growth, access to global talent and innovation, competitive advantage, and brand recognition.

However, to maximize the benefits of international expansion, you need to choose the right markets, considering factors such as economic stability, talent availability, and the legal and regulatory environment.

Choosing countries with a favorable economic, legal, and cultural environment can help you avoid the challenges in international expansion that companies often grapple with.

This article lists the best countries to expand your business internationally, what organizations need to know about global expansion, and how an EOR can help you.

The Top 10 Countries Supporting International Expansion

1. United States

With a GDP of over $25.46 trillion, the US stands tall as one of the largest economies in the world and is the first market that businesses target for expansion. Various factors make this country a business-friendly environment and foster growth for employees.

Factors favoring companies:

With a population of over 330 million people and high purchasing power, the United States offers a bright opportunity for businesses to increase their revenue growth and market penetration. It has a high number of start-ups, high labor productivity, and takes less time to set up a business. Also, it has low capital requirements for establishing a local legal entity.

The country's open and transparent legal system, regulations, and intellectual property protection have ranked it 6 on the Ease of Doing Business Index. Also, it has a GDP growth rate of 2.1%. So, for these reasons, the US tops the list when it comes to the best countries for expanding globally.

Also, the country's open and transparent legal system, regulations, and intellectual property protection have ranked it 6 on the Ease of Doing Business Index   

Factors favoring employees:

Employees enjoy high salaries and benefits. They get exposed to different cultures and perspectives since they pop into a diverse and multicultural environment. As for safety nets, the US follows strict legal laws that ensure fair treatment and protection for workers.

2. Singapore

Expanding to Singapore offers compelling advantages to businesses looking to thrive in a dynamic global landscape. This country is ranked 4th in the world for the most competitive economy and its appeal comes from many different aspects.   

Factors favoring companies:

Singapore's low corporate tax rate of 17% stands out as a major advantage for organizations seeking to optimize their financial strategies. Also, this country has ranked 2nd globally for talent competitiveness, highlighting its attractiveness for skilled professionals.

Factors favoring employees:

Besides competitive salaries, Singapore maintains relatively low personal income tax rates, one of the lowest in the world. Individuals only start paying income tax once their annual income exceeds $20,000. Also, the mandatory Central Provident Fund (CPF) contributes to employees' retirement savings, housing needs, and healthcare expenses.

3. Canada

Canada has experienced steady economic growth over the past ten years, making it an attractive destination for businesses seeking to expand internationally.

Factors favoring companies:

Among the G7 countries, Canada has one of the lowest corporate tax rates, with a federal rate of just 15%. Businesses with taxable incomes below a certain threshold qualify for a lower tax rate. This is a boon for startups and small enterprises. 

In addition, this country holds the 23rd rank in the Ease of Doing Business index.

Factors favoring employees:

According to the OECD Better Life Index 2023, Canada ranked first in work-life balance. Also, it offers impressive social safety nets, indicating the robustness of its social support programs.

4. Ireland

Ireland may not always be the first contender that comes to mind for global business expansion. But this small island nation packs a punch. Foreign direct investment (FDI) into the country rose by €26bn to €1,284bn in 2022, highlighting Ireland's continued attractiveness as a business location.

Factors favoring companies:

Ireland has fewer start-ups than the US and Singapore but has one of the lowest tax rates of all countries, at only 12.5%. The exciting thing is that it has a low business registration cost. Also, organizations get access to a talent pool proficient in English and other European languages.

Factors favoring employees:

Employees can experience a better quality of life with excellent healthcare, strong social safety nets, and statutory employee benefits. For instance, if an employee works on a Sunday, they must be paid extra, which is often specified in the employment contract.

5. Australia

Australia boasts a stable and well-developed economy and ranks third in wealth per adult. This indicates their strong consumer base with disposable income. Also, the country's geographical position gives you easy access to Asian markets. Its time zone also allows for convenient communication with both Asian and European markets.

Factors favoring companies:

Australia proudly secures the 14th spot globally regarding ease of business, with an abundant pool of skilled professionals with expertise, especially in financial services, mining, biotech, and medical research. 

Factors favoring employees:

Australia consistently ranks in the top 10 in global quality of life. Employees are entitled to a minimum of 20 paid vacation days annually, significantly higher than the global average. 

6. Germany

Germany has strong trade connections worldwide and is one of the best EU countries to set up a company. This country has a good reputation for productivity.

Factors favoring companies:

Germany boasts an impressive GDP worth $4.1 trillion, making it a fertile ground for business growth. It holds the top position among countries globally for its startup ecosystem. For a direct and effective method of conducting business, Germany offers a first-class transportation system and energy and communications infrastructure. Businesses can benefit from a variety of incentive programs and public funding instruments, such as GRW cash grants, research and development grants, and grants for hiring.

Additionally, Germany is home to a large and skilled labor force, providing you with access to talent across various sectors.

Factors favoring employees:

German employees enjoy competitive salaries and comprehensive benefits packages. Since it has a welcoming and diverse society, employees can enjoy a positive environment and a high quality of life with excellent healthcare, education, and social security systems.

7. India

As the world's fastest-growing major economy, expected to achieve a growth rate of 6.3% during 2024, India is one of the best countries for global expansion.

Factors favoring companies:

Compared to developed nations, India offers a competitive advantage in labor costs. So this attracts businesses that seek cost-effective production and operations. Also, it's home to a young and tech-savvy workforce. So many high-tech companies are leveraging India’s workforce to support sectors like telecommunications, IT, pharmaceuticals, and textiles.

Factors favoring employees:

Compared to many developed countries, India offers a lower cost of living, allowing employees to enjoy a higher standard of living with their salaries.

8. Norway

This country has a GDP of 579.42 billion US dollars. Also, it is a recognized leader in certain sectors like maritime, energy (including renewables), and sustainability. It attracts companies seeking access to expertise, talent, and investors in these areas.

Factors favoring companies:

Norway's government fosters entrepreneurship by offering incentives and programs, particularly in innovative sectors. Also, the country’s simple tax laws make it an easy choice for businesses exploring the international market.

Factors favoring employees:

Norway has a comprehensive welfare system that largely favors employees. For instance, the standard workweek in Norway is 37.5 hours, compared to the global average of 40 hours.

9. Netherlands

The Netherlands has a GDP per capita of $65,140 and has access to 95% of Europe's consumer markets.

Factors favoring companies:

This country is ranked third globally in the higher education system. Since the educated population is bilingual, it is exceptionally well suited to international business. Also, their corporate tax rates are relatively low compared to other countries.

Factors favoring employees:

The Netherlands boasts the second-shortest average workweek in the OECD, at 30.5 hours. It also offers well-developed infrastructure, good public transportation, and healthcare, contributing to a high standard of living.

10. Switzerland

Switzerland is a wealthy nation with a stable economy. It has a low unemployment rate and consistent growth. It recorded an impressive GDP of $807.71 billion at the end of 2022–23. So, this translates to financial security for businesses and employees.

Factors favoring companies:

Switzerland is the 36th easiest country in the world to do business, has a high labor productivity rate, and offers easy access to major European markets. This makes it one of the best countries to expand globally. However, the cost of living and business start-up costs are high. So, double-check if your business would thrive.

Factors favoring employees:

Switzerland has flexible employment and labor legislation globally. For instance, it favors at least four weeks of annual vacation leave, and employees can enjoy a high quality of life.

Simplify hiring in these countries and many others with Gloroots. 

What Do Organizations Need To Know About Expanding Internationally?

Implementing a global expansion strategy requires careful consideration and strategic planning. Here's what organizations need to know before expanding globally:

1. The market landscape

Before setting foot in a new market, researching thoroughly is essential. Understanding the market size, growth potential, competitor landscape, and customer preferences helps you get a better picture of how the market works there currently.

2. Legal and regulatory considerations

Every country has its own set of laws and regulations governing business operations, taxation, and labor practices. When organizations fail to comply with the laws, it can lead to hefty penalties, legal problems, and even operational shutdowns. In 2022, Apple was accused of violating worker rights and exceeding working hours at its manufacturing facilities in China.

One of the benefits of EOR in global expansion is ensuring your company complies with legal and regulatory requirements regarding employment, payroll, and taxation.

3. Consumer and business culture

Cultural differences can impact how you operate a business and market your products. Adapt your HR policies, management approaches, and employee engagement strategies to resonate with local customs and values.

4. Financial planning and risk management

Expanding internationally involves significant financial considerations, including currency fluctuations, import/export duties, and establishing operations in a new market.

Also, develop a comprehensive financial plan that accounts for recruitment costs, salaries, benefits, and other expenses associated with hiring employees abroad. 

5. Operational considerations

Setting up efficient logistics and supply chains for international operations can be complex. Determine how to recruit, onboard, and manage employees across different time zones and locations. Consider transportation costs, import/export regulations, and potential disruptions.

Make Global Expansion a Breeze by Partnering with a Global EOR – Gloroots

Expanding your business internationally can be exciting, but navigating the complexities of various legal and regulatory environments can be daunting. This is where an Employer of Record (EOR) like Gloroots can become your invaluable partner.

Our EOR eliminates the need to set up local entities, takes care of the legalities involved in onboarding or terminating employment, lets you meet international regulation compliance, simplifies payroll management, and ensures timely and accurate employee payments.

With Gloroots, you can confidently navigate the global landscape by focusing only on what truly matters and building a successful and thriving international business. 

Are you ready to expand your horizons? Get in touch with Gloroots today!