Click on a country’s flag to find out more.
China
Vietnam
Hong Kong
Indonesia
Japan
Malaysia
Thailand
CHINA COMPANY SET UP
China has one of the largest population with 1.3 billion and it is the second largest economy in the world. China has an influential role in development as well as in the global economy. Additionally, China introduced 6 Special Economic Zones (SEZs) to attract foreign investors.
Advantages
The world’s second largest economy with a GDP of US 14.24 trillion in 2019 and the largest population in the world with a population of approximately 1.34 billion inhabitants.
Disadvantages
Income taxes including 25% corporate income tax, 16% value added tax, 13% custom duties and personal income tax rate of up to 45%
Registered Capital
RMB 150,000
Resident Director
No
Minimum number of Director
1
Resident Shareholder
No
Minimum number of Shareholder
1
Must rent local office premises
Yes
Corporate Tax for local and foreign income
25%
Withholding Tax for Dividend
10%
Capital Gain Tax Rate
25%
Value Added Tax
16%
VIETNAM COMPANY SET UP
Vietnam, the third largest market in Southeast Asia. Since 2007, Vietnam has opened its doors to foreign investment, provides countless opportunities to foreign investors. That being said, as an investor or head of a multinational organization, you should be aware of the regulations, licensing hurdles, and bureaucratic challenges you may likely face when incorporating in Vietnam.
Advantages
Vietnam has signed several free trade agreements with countries worldwide – ASEAN Free Trade Area, Vietnam European Union FTA and ASEAN Hong Kong FTA
Disadvantages
The minimum paid up capital to establish a company in Vietnam is USD 10,000 and must be remitted to a capital account before incorporation.
Registered Capital
USD 10,000
Resident Director
Yes
Minimum number of Director
1
Resident Shareholder
No
Minimum number of Shareholder
1
Timeline
8 weeks
Corporate Tax
20%
Withholding Tax for Dividend
0%
Capital Gain Tax Rate
20%
Value Added Tax
10%
Hong Kong Company Setup
Hong Kong is one of the two Special Administrative Regions of the Republic of China, situated on China’s South Coast.
Known as “Asia’s world city”, it highlights the country’s roles as an international hub, and a gateway to economic opportunities.
Advantages
Hong Kong corporate tax rate is 16.5%, which is one of the lowest in Asia. Offshore companies do not have to pay any taxes in Hong Kong.
Disadvantages
Hong Kong banks now require Hong Kong companies to have more local substance before they will approve corporate bank account, include business relationships with Hong Kong customers, a physical office in Hong Kong and employees in Hong Kong
Registered Capital
HKD 10,000
Resident Director
No
Minimum number of Director
1
Resident Shareholder
No
Minimum number of Shareholder
1
Timeline
1 week
Corporate Tax/Branch Tax
16.5%
Withholding Tax on Dividend
0%
Capital Gain Tax Rate
0%
INDONESIA COMPANY SET UP
Indonesia is South East Asia’s largest economy while it has a 4th largest population in the world. It is predicted that Indonesia will become the top 7 largest economy by 3030. Additionally, Indonesia has the ASEAN Free Trade Area which is part of the Asian Economic Community agreement formed among the 10 ASEAN countries.
Advantages
Indonesia is the only ASEAN nation that is a member of the G20 nations.
Disadvantages
An Indonesian company is liable to pay corporate tax of 25% on income sourced in Indonesia and internationally. Capital gains are taxed up to 30%.
Registered Capital
IDR 5 Billion
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 Required before incorporation
Yes
Corporate Tax
25%
Withholding Tax on Dividend
20%
Capital Gain Tax Rate
25%
Value Added Tax
10%
JAPAN COMPANY SET UP
Japan has the third largest economy in the world and its market is filled with consumers with high levels of disposable income. Additionally, infrastructure such as telecommunication and transport systems are well established. 12 National Strategic Special Zones have been designed to promote international business.
Advantages
Both directors and shareholders can be non-resident foreigners
Disadvantages
The country’s labor costs are amongst the highest in the world. The average monthly salary per skilled worker is US 3,700 excluding bonus.
Registered Capital
JPY 5,000,000
Resident Director
No
Minimum number of Director
1
Resident Shareholder
No
Minimum number of Shareholder
1
Local office premises required before registration
Yes
Timeline
6 weeks
Corporate Tax/Branch Tax
23.2%
Withholding Tax on Dividend
20%
Capital Gain Tax Rate
23.2%
Consumption Tax
10%
MALAYSIA COMPANY SET UP
In the last decade, Malaysia reduced their dependence on petroleum as a main source of income and worked on their industry value chain. Today, it has emerged as an attractive regional hub for services, including financial, information and communications technology and logistics sectors.
Advantages
Start a company in Malaysia is cheaper than Singapore, including monthly salary and office rental space.
Disadvantages
Malaysia corporation tax is higher than Singapore, subject to 24% on all annual profits. Withholding tax of 10% and 15% is applied on all interest and royalty payments to a non-resident.
Registered Capital
RM 500,000
Resident Director
Yes
Minimum number of Director
1
Resident Shareholder
No
Minimum number of Shareholder
2
Timeline
2 weeks
Corporate Tax /Branch Tax
24%
Withholding Tax on Dividend
0%
Capital Gain Tax Rate
0% – 30%
Service Tax
6%
THAILAND COMPANY SET UP
Thailand is South East Asia’s second largest economy. Thailand has established infrastructure and communication networks which is important for doing business. Thailand has a very large and active manufacturing sector. Additionally, Thailand has dynamic government policies to encourage more foreign investments.
Advantages
Thailand VAT exemption on all exports and custom duties exemption on all exports.
Disadvantages
Corporate income tax amount is 20%, effective total tax rate for companies approximates 30%, including corporation tax and VAT. Capital gains can be taxed up to 35%.
Registered Capital
THB 2M
Resident Director
No
Minimum number of Director
1
Resident Shareholder
No
Minimum number of Shareholder
3
Timeline
3 weeks
Corporate Tax
20%
Withholding Tax on Dividend
10%
Capital Gain Tax Rate
20%
Value Added Tax
10%