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Expanding your business to Asia can be a strategic move and one that will bring you significant revenue. Asia has been blooming into a technology-oriented hub. Nevertheless, the possibilities are not limited to the existing and well-developed financial and tech centers. Investors have access to a growing market, with opportunities to grow their businesses in various industries. Below is an introduction to the considerations for investors who want to expand their business to Asia in three different jurisdictions.
Investing in Singapore
Singapore is a multi-cultural tech and business center in Asia that welcomes innovative companies through a low tax rates policy. A good legal framework is another key point on the list of Singapore’s advantages: the city-state has a reliable intellectual property rights framework that is properly enforced. A large number of trade agreements and double tax treaties make Singapore one of the main transport hubs in Asia and a good location to base an import/export business.
Singapore has low taxes for companies, an easy company set-up process, and good quality of life.
Opening a Hong Kong Company
Close to Singapore, Hong Kong is another excellent choice for investors who want to expand their businesses to Asia. Its main advantage is close proximity to Mainland China and thus, to important Chinese business centers like Shenzhen. Hong Kong can be used as a springboard for investors who want quick access to the Chinese market but also want to enjoy a much more favorable business environment.
The company formation process is simple in Hong Kong, and companies benefit from low taxes. There is no value added tax and no withholding tax on dividends.
Expanding Your Company in Japan
Japan is synonymous with innovation and technological advancement. The country is one of the most popular locations to test new advanced technologies and goods, and it is also known for its extremely skilled and hard-working employees. Japan has a well put together infrastructure and investors who establish a company in Japan have access to full foreign ownership for a number of structures that offer the same advantages as the well-known and popular business structures used throughout the rest of Asia or Europe.
Japan is a leader in the fields of robotics and technology. However, this business sector is not dominated only by large international companies. Small, medium-sized companies are also present on the market.
Some of the top business sectors in Japan include the ICT industry, life science, or electricity and renewable energy. The Japanese Government facilitates foreign investment in the country through a series of national incentives for the promotion of research and development businesses, for companies who relocate their headquarters from Tokyo, or for companies that hire special categories of employees.
Each of these markets has its own distinct opportunities and challenges. If you are willing to take the next big step for your business and expand to Asia, we recommend that you seek specialized company formation counseling in your country of choice.