Estonia recorded the highest new business registration rate among the countries included in our 2024 comparison, with 26.76 newly registered companies per 1,000 working-age people, according to the World Bank's Entrepreneurship Database.
Cabo Verde follows with 21.76 new registrations per 1,000 people aged 15–64, while Luxembourg (19.61), the United Kingdom (19.19) and Saint Kitts and Nevis (18.72) complete the top five.
The rankings highlight significant differences in formal business formation across countries of varying sizes and economic structures.
Rather than comparing the total number of businesses created, this analysis uses new business density—a population-adjusted measure of newly registered limited-liability companies.
The figures refer to the 2024 calendar year, the latest annual period available in the dataset.
Countries with the highest new business registration density in 2024. Source: World Bank Entrepreneurship Database. Visualization: The Data Visual.
New Business Registration Rates by Country: 2024 Rankings
Estonia leads the ranking with 26.76 new business registrations per 1,000 working-age people, followed by Cabo Verde at 21.76 and Luxembourg at 19.61.
The United Kingdom ranks fourth with 19.19, while Saint Kitts and Nevis takes fifth place at 18.72.
Australia (18.06), Montenegro (17.86), New Zealand (16.05), Liechtenstein (15.57) and Nauru (15.23) complete the top ten.
The searchable table below ranks 126 countries and economies by their new business registration density in 2024, using World Bank data.
Note: Figures represent newly registered limited-liability companies per 1,000 people aged 15–64 in 2024. Values are rounded to two decimal places. The ranking excludes regional aggregates, dependent territories and selected economies with incomplete geographic coverage.
Key Findings From the Rankings
Estonia Leads the World Bank Comparison
Estonia ranks first with 26.76 newly registered limited-liability companies per 1,000 working-age residents.
Its rate is approximately 23% higher than Cabo Verde's 21.76, the second-highest figure in the ranking.
Estonia's position reflects a high level of recorded formal business formation relative to its working-age population.
However, the registration rate alone does not reveal how many newly established companies subsequently become profitable, employ workers or remain active over time.
Cabo Verde Ranks Second Worldwide
Cabo Verde stands out with 21.76 new registrations per 1,000 working-age people, placing it ahead of larger economies such as Australia and the United Kingdom.
Its strong position illustrates why population-adjusted rankings can produce very different results from comparisons based on the absolute number of newly registered companies.
A relatively small economy can record a high business formation rate without creating more businesses in total than a much larger country.
European Countries Feature Prominently
Five of the top ten countries are European: Estonia, Luxembourg, the United Kingdom, Montenegro and Liechtenstein.
Luxembourg records 19.61 new registrations per 1,000 working-age people, followed by the United Kingdom at 19.19.
Montenegro reaches 17.86, while Liechtenstein records 15.57.
These figures show that high rates of formal company registration occur across European economies with different population sizes and business environments.
Australia and New Zealand Rank Among the Top Ten
Australia records 18.06 new business registrations per 1,000 working-age people, ranking sixth.
New Zealand follows in eighth place with 16.05.
Both countries feature prominently in this comparison, although their positions measure registrations rather than the success or long-term survival of new businesses.
Smaller Economies Also Stand Out
Saint Kitts and Nevis ranks fifth, while Liechtenstein and Nauru also appear among the ten highest-ranked countries.
Smaller economies can have distinctive business registration patterns, including activity associated with international companies and financial services.
As a result, a high registration density should not automatically be interpreted as evidence of a stronger domestic startup ecosystem or greater entrepreneurial opportunity for residents.
What Is New Business Density?
New business density measures the number of newly registered limited-liability companies per 1,000 working-age people during a calendar year.
The World Bank defines the working-age population for this indicator as people aged 15–64.
For example, a business density of 20 means that approximately 20 new limited-liability companies were registered for every 1,000 people in that age group during the year.
The indicator allows comparisons between countries with very different population sizes.
However, it does not measure every form of entrepreneurial activity.
Informal businesses, many sole proprietorships and other business structures are not necessarily included.
Why Is Business Registration Density Important?
New company registrations provide one way to examine the creation of formal businesses.
Formal registration can allow companies to establish legal identities, enter contracts, access financing and participate in regulated markets.
Changes in registration activity may also offer insights into the business environment and how frequently new companies are being established.
However, business formation is influenced by several factors, including regulatory requirements, access to capital, economic conditions and national registration practices.
A rising registration rate does not necessarily mean that an economy is becoming more productive or that new firms are generating employment.
To assess business development more broadly, company registrations should be considered alongside firm survival, investment, employment and economic growth.
Does a Higher Registration Rate Mean a Better Startup Ecosystem?
Not necessarily.
A high new business density indicates that more limited-liability companies are being registered relative to the working-age population.
It does not show whether those companies are innovative, financially successful or capable of expanding.
Some businesses may remain inactive after registration, while others may close within a short period.
Additionally, countries differ in their legal systems, business structures and administrative requirements.
For these reasons, new business density is best understood as an indicator of formal business formation, rather than a comprehensive measure of entrepreneurship quality or startup success.
Frequently Asked Questions
Which country had the highest new business registration rate in 2024?
Estonia ranked first in The Data Visual's selected country comparison, with 26.76 newly registered limited-liability companies per 1,000 working-age people in 2024.
Which African country had the highest new business density?
Cabo Verde led the African countries included in this ranking, recording 21.76 new business registrations per 1,000 working-age people.
How is new business density calculated?
New business density is calculated by dividing the number of newly registered limited-liability companies by the population aged 15–64 and multiplying the result by 1,000.
Is new business density the same as the number of startups?
No. New business density measures formal registrations of limited-liability companies. It does not identify which companies are startups, innovative businesses or high-growth enterprises.
Does the ranking include informal businesses?
No. The World Bank's indicator focuses on formally registered limited-liability companies and does not comprehensively capture informal entrepreneurial activity.
About the Data and Methodology
This analysis uses the World Bank's New Business Density indicator (IC.BUS.NDNS.ZS), published through the Entrepreneurship Database and World Development Indicators.
The indicator measures the number of newly registered limited-liability companies per 1,000 people aged 15–64 during a calendar year.
The Data Visual uses observations from 2024, the latest available annual reporting period in the source dataset.
The original World Bank data were filtered to exclude regional aggregates, dependent territories, missing observations and selected economies with incomplete geographic coverage.
China was excluded because the reported business registration data cover Shanghai rather than the entire country. The Democratic Republic of the Congo was also excluded because its reported registrations cover selected provinces.
Kosovo was excluded under the country-selection criteria used for this edition.
The resulting table includes 126 countries and economies with available 2024 observations.
Countries are ranked from highest to lowest using their original reported business density values. Figures are displayed to two decimal places.
This is a selected-country ranking rather than an exhaustive comparison of every economy worldwide.
The World Bank primarily collects the underlying business registration data from national business registries, with alternative official sources used where necessary.
Differences in national legal definitions, registration systems and coverage may affect international comparisons.
The figures measure formal company registrations, not the total number of active businesses, startup success, employment creation or overall entrepreneurial performance.
Data Sources
- World Bank — New Business Density
- World Bank — Entrepreneurship Database
- World Bank — Indicator Definition and Methodology
The Data Visual | Facts. Data. Visualized.
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