Do you want to open a business abroad? Why not choose Asia as a destination for your company? In this article we will give you some advice and explanations about starting a business in Asia!
Why set up a company in Asia?
Before giving you some advice on opening a company in Asia, we will explain why it is more advantageous… Indeed, the risks for companies and entrepreneurs who launch their project abroad are multiple:
– The price of labour may be lower, but that doesn’t mean that employees work less! Expect highly committed staff who will give their best
– Asian countries enjoy much faster economic growth than European or American countries. In addition, its political stability is conducive to business development
– If English is your first language, you will have no problem communicating with your partners as most people here are fluent in English! As far as local languages are concerned, don’t worry too much, as all important documents, such as contracts, bank statements, etc. are written in a foreign language.
– In Asia, business is done according to a hierarchy. Therefore, it is important to be respectful and not to show any signs of familiarity with your partner, otherwise you will lose his respect
How to open a company in Asia?
To start a business in Asia, you first need to have an idea of how the legal system works here: while some countries are more open than others (such as Hong Kong) where businesses can be set up relatively easily in two days, other countries require complicated procedures to open a limited liability company or a joint stock company, such as Thailand or Malaysia. Whichever country you choose, there are common steps that will help you set up your business efficiently from start to finish! Let’s take Singapore as an example.
(We also invite you to check out the Hawksford website).
In order to set up a business in Singapore, you will need to be the director of your company. If it is not possible for you to come to Singapore personally, you can appoint another person as a director or nominee who will represent your interests during all legal procedures.
After choosing a suitable name for your new company by checking that there are no other similar companies registered with ACRA (the Singapore Trademark and Companies Registry), the next step is to open a bank account, which has two requirements: firstly, at least one shareholder must be resident in Singapore; secondly, only the names of the shareholders must appear on the account and not the company itself! As for the shareholding structure, shares can be held individually or jointly.
In order to register your company, you will need an ACRA Certificate of Incorporation. This is free and can be obtained online after completing the appropriate forms. It must then be lodged with the Accounting and Corporate Regulatory Authority (ACRA) within one month of its issue.
How much does it cost to open?
The price varies from country to country! For example, setting up a limited liability company in China costs around €1,500 whereas the same process would have been twice as expensive for France or Germany. In addition, many Asian countries do not provide for any form of taxation until income reaches at least €100,000 per year!
The costs of opening a company in Asia also depend on the country in which you start your business – it is possible to set up a limited company for as little as €1,500, whereas it costs twice as much in France or Germany
How long does it take?
Depending on the legal system and registration requirements of each country, it can take from one day (Hong Kong) to several weeks (Thailand). It goes without saying that the opening time depends on several criteria in addition to where you want to set up your business in Asia.
Conclusion & Advice
To conclude on setting up a business in Asia, before you start, check if it is possible that the director of the company is not physically present during all the procedures. This can also save you money as it will save you from making several trips abroad! Bear in mind that not all Asian countries are equal and some are better than others, both in terms of advantages and disadvantages.