CHINA has an estimated population of 1.4 billion people. As the world’s second largest economy, China holds significant influence in global development and the international economy. Furthermore, China implemented six Special Economic Zones (SEZs) to incentivize foreign investment and foster economic growth.
| CHINA COMPANY SETUP | |
|---|---|
|
Registered Capital |
No minimum (reasonable amount per industry norms and business requirements) |
|
Resident Director |
No |
|
Minimum number of Director |
1 |
|
Resident Shareholder |
No |
|
Minimum number of Shareholder |
1 |
|
Must rent local office premises |
Yes |
|
Corporate Tax / Branch Tax |
25% |
|
Withholding Tax for Dividend |
10% |
|
Capital Gain Tax |
25% |
|
Value Added Tax |
13% |
VIETNAM, the third largest market in Southeast Asia, has been welcoming foreign investment since 2007, presenting numerous opportunities for international investors. However, it is important for investors and leaders of multinational organizations to understand the regulatory landscape, licensing requirements, and bureaucratic challenges they may encounter when establishing a presence in Vietnam.
| VIETNAM COMPANY SETUP | |
|---|---|
|
Registered Capital |
No Minimum (usually not less than USD 10,000 or equivalent in other currency) |
|
Resident Director |
Yes |
|
Minimum number of Director |
1 |
|
Resident Shareholder |
No |
|
Minimum number of Shareholder |
1 |
|
Timeline |
8 weeks |
|
Corporate Tax / Branch Tax |
20% |
|
Withholding Tax for Dividend |
0% |
|
Capital Gain Tax |
20% |
|
Value Added Tax |
10% |
HONG KONG is one of the two Special Administrative Regions of the People’s Republic of China, located on the southern coast. Recognized as “Asia’s world city,” it serves as a prominent international hub and a gateway to various economic opportunities.
| HONG KONG COMPANY SETUP | |
|---|---|
|
Registered Capital |
No minimum (usually not less than HKD 10,000 or equivalent in foreign currency) |
|
Resident Director |
No |
|
Minimum number of Director |
1 |
|
Resident Shareholder |
No |
|
Minimum number of Shareholder |
1 |
|
Timeline |
1 week |
|
Corporate Tax / Branch Tax |
8.25% (on 1st HKD 2 million of assessable profits) |
|
|
16.5% (on remaining assessable profits) |
|
Withholding Tax for Dividend |
0% |
|
Capital Gain Tax |
0% |
INDONESIA boasts the largest economy in Southeast Asia and is home to the fourth largest population globally. Projections indicate that by 3030, Indonesia is expected to become one of the top seven largest economies worldwide. Furthermore, Indonesia is an active participant in the ASEAN Free Trade Area, which is a crucial component of the Asian Economic Community agreement established among the ten ASEAN nations.
| INDONESIA COMPANY SETUP | |
|---|---|
|
Registered Capital |
IDR 50M to 500M (small-sized business) |
|
|
IDR 500M to 10B (medium-sized companies) |
|
|
IDR 10B (large-sized companies) |
|
Resident Director |
Yes |
|
Minimum number of Director |
1 |
|
Resident Shareholder |
No |
|
Minimum number of Shareholder |
2 |
|
Minimum number of Commissioner |
1 |
|
Timeline |
3 months |
|
Tenancy Agreement |
Yes |
|
Corporate Tax / Branch Tax |
22% |
|
Withholding Tax on Dividend |
20% |
|
Capital Gain Tax |
22% |
|
Value Added Tax |
11% |
|
|
12% (as of 1-Jan-25) |
JAPAN is the third largest economy globally and has highly developed infrastructure, including advanced telecommunication and transport systems. To facilitate international business, Japan has implemented 12 National Strategic Special Zones specifically designed to promote and attract foreign investment.
| JAPAN COMPANY SETUP | |
|---|---|
|
Registered Capital |
JPY 1 |
|
Resident Director |
No |
|
Minimum number of Director |
1 |
|
Resident Shareholder |
No |
|
Minimum number of Shareholder |
1 |
|
Local Office Premises |
Yes |
|
Timeline |
6 weeks |
|
Corporate Tax / Branch Tax |
23.2% ^ (30% – 34% including local taxes) |
|
|
^ applies to ordinary companies with share capital exceeding JPY 100M. |
|
Withholding Tax on Dividend |
15% / 20% (15.315% / 20.42% including surtax) |
|
Capital Gain Tax |
23.2% (30% – 34% including local taxes) |
|
Consumption Tax |
10% (7.8% national tax and 2.2% local tax combined) |
MALAYSIA has significantly reduced its reliance on petroleum as a primary source of income over the past decade, instead focusing on enhancing its industry value chain. As a result, it has transformed into an appealing regional hub for various service sectors, including finance, information and communications technology, and logistics.
| MALAYSIA COMPANY SETUP | |
|---|---|
|
Registered Capital |
RM 1 |
|
|
RM 500,000 (if applying for Employment Pass) |
|
Resident Director |
Yes |
|
Minimum number of Director |
1 (aged 18 and above) |
|
Resident Shareholder |
No |
|
Minimum number of Shareholder |
1 (aged 18 and above) |
|
Company Secretary |
Yes (must be licensed by SSM or a member of any professional body) |
|
Timeline |
2 weeks |
|
Corporate Tax/ Branch Tax |
24% |
|
Withholding Tax on Dividend |
0% |
|
Capital Gain Tax |
0% – 30% |
|
Sales Tax / Service Tax |
6% (service tax) / 10% (sales tax) |
THAILAND is second largest economy in Southeast Asia, boasting well established infrastructure and robust communication networks. Its thriving manufacturing section, which is both sizable and vibrant, plays a crucial role in facilitating business activities within the country. Moreover, Thailand has dynamic government policies to promote and attract increased foreign investments.
| THAILAND COMPANY SETUP | |
|---|---|
|
Registered Capital |
THB 2,000,000 (per foreign employee) |
|
Resident Director |
No |
|
Minimum number of Director |
1 |
|
Resident Shareholder |
No |
|
Minimum number of Shareholder |
3 |
|
Timeline |
3 weeks |
|
Corporate Tax / Branch Tax |
20% |
|
Withholding Tax on Dividend |
10% |
|
Capital Gain Tax |
20% |
|
Value Added Tax |
10% (reduced to 7% until 30-Sep-23) |
PHILIPPINES, an emerging global economy, has experienced rapid growth in recent years. Located at the heart of Southeast Asia, it serves as a welcoming gateway to the region, offering convenient access to neighbouring provinces and ASEAN Free Trade Area markets. With competitive costs, particularly in outsourcing, generous benefits and incentives provided by the government, it is a prime investment destination.
| PHILIPPINES COMPANY SETUP | |
|---|---|
|
Registered Capital |
PHP 5,000 (or at least 25% of contributed capital must be paid up, whichever higher) |
|
Resident Director |
No |
|
Minimum number of Director |
1 |
|
Resident Shareholder |
No |
|
Minimum number of Shareholder |
1 |
|
Company Secretary |
Yes (must be a Filipino citizen) |
|
Corporate Tax |
20% / 25% |
|
Branch Tax |
25% (plus 15% tax on after-tax profits remitted to foreign head office) |
|
Withholding Tax on Dividend |
15% / 25% |
|
Capital Gain Tax |
20% / 25% |
|
Value Added Tax |
12% (standard rate) |
Above information provided is based on the most recent data available as of Jan 2023. For the most up-to-date and accurate information, we strongly recommend verifying the data with reliable sources. It is important to note that industry-specific and entity-specific requirements may vary. Therefore, it is advisable to consult with relevant authorities or seek professional guidance to ensure compliance with the latest regulations.