Asia is one region that has been getting more and more attention from foreign investors and it is also a preferred location for those who open their first start-up project. With growing attractiveness and a steady inflow of talented employees moving to work and live in the Asia-Pacific area, we can only expect that this region will continue on an upward trend. We take a look at top 3 Asian countries to start a business and we talk about the main advantages for investors in each one of these destinations.
Singapore, a top destination
Singapore is a hub for entrepreneurs and it is at the forefront of technological and business evolution in Asia. The city-state has a welcoming startup ecosystem, attractive business regulations and company incorporation in Singapore is a process easily handled by any foreign investor.
Some of the main advantages of starting a business in Singapore include an attractive business ecosystem, full of fresh, innovative business opportunities and ideas and access to talented foreign workers. Business opportunities abound in the city-state, from starting a service-oriented business, like a plumbing company in Singapore, to investing in a fintech startup, the business regime in Singapore welcomes investments. One extremely important characteristic is that Singapore has a low-tax regime with a 17% corporate income tax and a partial tax exemption that applies on the first 300,000 SGD of chargeable income.
Startups love Thailand
Bangkok is a modern city that offers access to good transport and communications infrastructure and a welcoming environment for expats and foreign entrepreneurs. The Government has been working on easing up the regulations for foreign ownership and as a result, foreign entrepreneurs now have access to less stringent policies when it comes to fully owning their business and the requirements for partnering up with a Thai national.
Businessmen interested in opening a company in Thailand should know that this country offers a number of incentives which include both tax and nontax ones. The latter is a special category that will include special services or guarantees for selected types of companies or for investments in key sectors. Incentives are awarded based on the activity the company engages in or according to merit.
Hong Kong, welcoming businesses
Hong Kong is an international and competitive financial centre, basing its success on a winning mixture between low taxes for companies, an easy company incorporation process and close proximity to Mainland China. Although it is a financial hub and the home of many successful financial companies, business opportunities in Hong Kong also expand to the trading and services industry.
Like Singapore, Hong Kong attracts foreign entrepreneurs and startup owners because of its simple business regime and low taxes for companies. The corporate income tax rate in the city is 16.5 percent and it applies to Hong-Kong source income and not to foreign-source income. New business owners have access to excellent infrastructure and startups can explore the co-working spaces available throughout the city, a real solution for small companies looking for modern office spaces.
It is easy to presume that Asia will continue to attract both talented investors and foreign talented employees. These cities, as well as other locations in Asia, offer an evolving and dynamic ecosystem for startups and businesses in general. Entrepreneurs can explore the opportunities Hong Kong, Singapore or Bangkok have to offer, as well as other cities.