Starting an online business has a number of advantages, however, incorporating the company in an Asian country can offer an added value for investors. An e-commerce business will be easy to set up and will have access to a wide range of possible clients. Moreover, the general benefits of opening an online business in Asia will include low tax rates as per the chosen jurisdiction. We present some of these advantages below.
Easy company setup
Company formation in Singapore, Hong Kong, Malaysia or Dubai is a simple procedure and investors can easily handle the steps and, in some cases, will not need to be present in the country during the entire incorporation process. They can be assisted by a local law firm that can act on behalf of the investor through a power of attorney. The lawyers will represent the foreign entrepreneur in front of the local authorities and obtain the licenses and permits required for the specific field of activity. They can also represent their clients in front of the local courts in case of a litigation regarding the company established in that country.
Foreign companies that want to expand to the Asian market can open a subsidiary in Singapore as an alternative to starting a new business.
Low corporate taxes
Hong Kong and Singapore are only two examples of low-tax jurisdictions in Asia. The corporate income tax rate in Hong Kong is 8.25% on the first 2 million HKD of assessable profits and 16.5% onward and in Singapore, there is a tax exemption on 75% of the first SGD10,000 of chargeable income and 50% of the next SGD290,000 normal chargeable income.
A car rental company in Dubai will also enjoy a low taxation regime, as in the other countries in Asia presented herein. We recommend that investors explore all of the jurisdictions presented here as well as others that offer a favorable taxation regime.
Opening a company in a well-known business hub is a goal for many investors. Even if they are not e-commerce companies per se, businesses will benefit from having a well-developed and optimized website. For example, a dental clinic in Dubai can provide services for clients throughout the Emirates and the website will offer valuable information for its clients.
Starting a business in Asia can have many advantages, starting with a favorable business climate and low taxes for the business. Investors who are willing to take the step of opening an online business in this region should consider both the evident advantages as well as some of the challenges such as the different cultural norms or the language.
Opening an online business is usually faster and implies fewer costs than a traditional business that will also need to have dedicated headquarters and equipment, as per the business sector. In Asia, an online business can include e-commerce stores with different types of products, web design and development services, digital products or courses, virtual assistant and others.