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Business Structures by Country — Founder Guide

What this is

This cluster explains and compares common company/entity structures founders use across jurisdictions — liability, tax model, non-resident suitability, and administrative complexity. It is informational only and not legal, tax, accounting, or incorporation advice.

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Admin complexity is bucketed from the country's mean difficulty across five axes (formation, banking, accounting, payroll, compliance); SaaS suitability is bucketed from the published SaaS scorer. Both are jurisdiction properties, not entity-specific scores.

Business structures comparison
StructureCountryTypeLiabilityTax modelNon-residentAdminSaaSBest for
Canadian CorporationCanadaCorporationLimited (shareholders)~23-31% general / 9% CCPC smallLimitedModerateHighNorth-America-focused founders
Czech Limited Liability Company (s.r.o.)Czech RepublicLimited liability companyLimited (shareholders)Flat 21% corporateLimitedModerateHighEU-focused SMEs
Dutch Private Limited Company (BV)NetherlandsPrivate limited companyLimited (shareholders)25.8% / 19% first EUR 200kModerateModerateHighEU-scaling and holding founders
Estonian Private Limited Company (OÜ)EstoniaPrivate limited companyLimited (shareholders)Distributed-profits (deferral)HighLowHighRemote, digital-first founders
French Simplified Joint-Stock Company (SASU)FranceSimplified joint-stock companyLimited (shareholder)25% standard / 15% SME bandModerateHighHighSolo founders targeting the EU
German Limited Liability Company (GmbH)GermanyLimited liability companyLimited (shareholders)~30% combined corporateModerateHighHighEU-market and B2B founders
Polish Limited Liability Company (sp. z o.o.)PolandLimited liability companyLimited (shareholders)19% corporate / 9% small taxpayerModerateHighHighEU-focused SMEs
Portuguese Private Limited Company (LDA)PortugalPrivate limited companyLimited (quotaholders)19% mainland / 15% SME bandModerateModerateHighIberia/Lusophone-focused founders
Singapore Private Limited Company (Pte Ltd)SingaporePrivate limited companyLimited (shareholders)17% headline + start-up exemptionLimitedLowHighAPAC-focused founders
Spanish Limited Liability Company (SL)SpainLimited liability companyLimited (shareholders)25% standard / 15% new companyLimitedModerateHighIberia/LatAm-focused founders
U.S. C-CorporationUnited StatesCorporationLimited (shareholders)Flat 21% federal (entity-level)LimitedHighModerateVenture-backed startups
U.S. Limited Liability Company (LLC)United StatesLimited liability companyLimited (members)Pass-through by defaultLimitedHighModerateBootstrapped or owner-operated founders
UAE Free Zone CompanyUnited Arab EmiratesFree zone entityLimited9% above threshold; 0% qualifying incomeModerateModerateModerateInternational services founders
UK Private Limited Company (Ltd)United KingdomPrivate limited companyLimited (shareholders)25% main / 19% small profitsHighLowHighSolo founders and small teams

Orientation

A general way to narrow the field — not advice. Your choice commonly depends on funding plans, residency, tax status, and where customers and banking will be.

A general way to narrow the field (not advice)

  1. Raising institutional venture capital?

    Investors commonly expect a corporation (for example a Delaware C-corp). If you are not raising, a pass-through or private limited company is often simpler.
  2. Operating mostly remotely or as a non-resident?

    Fully digital jurisdictions (for example an Estonian OÜ or UK Ltd) often reduce friction, but banking and substance rules can vary.
  3. Selling primarily into one market?

    A local entity in that market can simplify banking, VAT or sales tax, and customer trust — weigh this against tax and compliance load.
  4. Verify before deciding

    Entity choice depends on funding, residency, tax status, and activity. Confirm with the official registry and a qualified advisor.

Related

See how each structure plays out operationally on the start a business cluster, model costs with the company formation cost calculator, and review the methodology.

Informational overview only. This page is not legal, tax, accounting, or incorporation advice. Rules commonly vary by jurisdiction, residency, ownership, tax status, and business activity, and can change over time. Verify details with the official registry and a qualified advisor. See the methodology, disclaimer, and sources.