Editor’s note: This article was first published in May 2014; the population and company counts it gives for Delaware, the Cayman Islands, the Bahamas and Gibraltar are 2014 figures and were not sourced in the original.
This is no exaggeration. There are places in the world where there are literally more companies than inhabitants, and it’s not exactly because of an entrepreneurial culture but rather because of tax advantages. These are some of the tax havens that billionaires, businesspeople and sports stars, among others, choose to avoid taxes, and they are also ideal places to set up shell companies that finance illicit activities.
They are a problem for the global economy because, as the BBC pointed out, the money sitting in these tax havens (estimated in the trillions) is missing from the economy and widens the gap between rich and poor. They are a real problem, and one that governments know exists, because the ratio of companies to inhabitants is shamelessly obvious.
Delaware
Delaware is the second-smallest state in the US, behind only Rhode Island. It has 917,000 inhabitants and no fewer than 945,000 registered companies. If we looked only at the number of companies, it would clearly be the most entrepreneurial place in the world.
Cayman Islands
The Cayman Islands are a British territory northwest of Jamaica, between Cuba and the coast of Honduras. They are one of the favourite destinations for wealthy tourists (and not just for tourism), as if they threw in a company with your second drink. They have 57,000 inhabitants and more than 85,000 registered companies.
The Bahamas
The Bahamas is a country made up of some 700 small islands and islets north of Cuba, very close to Miami. It is another of the most popular tourist destinations for the upper classes, as well as an ideal place to set up a company. In fact, the Bahamas has 370,000 inhabitants and 113,000 registered companies, which is 1 company for every 3 inhabitants, making it the third most entrepreneurial place on the planet.
Let’s just say these are among the few places in the world where 3,000 companies registered in a 100-apartment building raises no suspicion at all. Maybe it’s an example of coworking, too?
And let’s not forget Gibraltar, another British colony that perfectly meets the requirements of a tax haven, with about 30,000 inhabitants and more than 80,000 registered companies.
Further reading
- Singapore will replace Switzerland as a tax haven
- To open an account in a tax haven, only the old-fashioned way works
Featured image: Davidt8, Public domain, via Wikimedia Commons.
