Denmark is a true paradise for companies. Denmark is the only country in the world to provide the most optimal conditions for business life covering a wide range of factors.

The US business magazine Forbes places Denmark top out of 120 leading countries ranked according to the best business climate.

Denmark has improved its ranking from last year, climbing three places to take top position.

The fine ranking is the result of Denmark's stable economic policy and long history of free trade with the emphasis on low inflation.

These are extremely important factors for companies contemplating long-term investments abroad.

A high degree of personal and financial freedom, minimal bureaucracy and corruption, participation in free and fair elections, good opportunities for protection of minority shareholders and good conditions for entrepreneurs and high-tech companies are drawing in the right direction.

India (No. 64, down 13) and China (No. 79, down 2) fell in this year's ranking as political instability resulted in resistance to increasing personal freedoms.

Higher inflation attributable to the cost of food and other commodities, as well as increased burdens on entrepreneurs, also impacted negatively on the world's most populous nations as business destinations.

The top ten most business friendly countries according to Forbes are:

1. Denmark
2. Ireland
3. Finland
4. USA
5. United Kingdom
6. Sweden
7. Canada
8. Singapore
9. Hong Kong
10. Estonia

Read Forbes article here