Cost of Setting Up a Company Abroad

Starting a company abroad can open the door to international markets, tax advantages, and new customer bases. However, the cost of setting up a company varies widely depending on the country, type of company, legal requirements, and additional services such as banking, tax registration, and local representation.

In this guide, we break down the main cost components of setting up a company overseas and give examples from popular jurisdictions.

Key Factors That Affect Company Formation Costs

1. Jurisdiction

The country you choose has the biggest impact on cost. For example:

• United Kingdom: Starting from £12 (online registration)

• Estonia: Around €190 via e-Residency

• United Arab Emirates: From $2,000 to $6,000 depending on Free Zone

• USA (Delaware or Wyoming): $100 to $500 depending on the state

• Singapore: $315 to $1,000

2. Type of Company

Costs vary between forming a Limited Liability Company (LLC), Corporation, or Branch Office. LLCs are usually the most affordable option for small businesses and startups.

3. Government Fees

Each jurisdiction charges incorporation fees. Some also require annual renewal fees, business licenses, and name reservation fees.

4. Registered Agent & Office Address

Many countries require a local registered agent and a local business address. These services can cost between $100 and $500 annually.

5. Legal & Consultancy Fees

If you use a legal service or a company formation agency, fees may range from $300 to over $2,000 depending on the complexity and location.

6. Bank Account Opening

In some countries, opening a business bank account involves extra documentation and service fees. International banking fees can range from $100 to $1,000.

7. Tax ID and Compliance

Registering for VAT, corporate tax numbers, and ongoing accounting services may add additional costs, especially in countries with strict reporting obligations.