Business is booming and favorable conditions in Asia are setting the continent up to be a global financial hub. Countries in Asia possess economic conditions that attract foreign investors and companies. These companies seek to expand into the market given the growing talent pool as well as the enticing tax rates. The world of commerce has always been growing and foreign investments have played a major role.
The continent is huge but there are specific regions that have shown potential when it comes to business expansion. We took some time to talk to our industry specialist Conrad Brennan (view his profile) to find out which Asian countries have garnered the most attention.
1. Hong Kong
The strategically located Special Administrative Region of China is seen as one of the leading financial centers in the world. The region’s corporate tax rate is set at 16.5%. Corporations pay half of the tax on their assessable profits for their first HKD 2 million. Companies in Hong Kong also have the advantage of tax exemption when it comes to investment gains or trading of company stocks.
Business culture also plays a major role and makes it easier for foreign companies to put down roots. The language barrier is easier to overcome in Hong Kong with the official languages being Mandarin, Cantonese and English. An added benefit for foreign businesses is that they are allowed to own their companies outright.
Hong Kong is a prime business location given the relatively low taxes and regulations. Additionally, the region is located strategically so that any company that establishes itself in Hong Kong can potentially cash in on other Asian markets. These markets could include regions such as Kuala Lumpur, Tokyo, Shanghai or Beijing.
Establishing a business with the proper criteria will be favorable for any foreign business looking to set up shop in Malaysia. The main business hub in the country is Kuala Lumpur and is a popular choice with investors. The corporate tax rate is set at 24% and for small-to-medium enterprises (SMEs) the business’ first MYR 600,000 is taxed even lower at 17%.
Technology companies looking to settle in Malaysia benefit greatly from the shared interest. The world of business is driven by innovation and technology more every day, the country wants to stay ahead of the curve.
International companies are also able to market products to Malaysian residents with ease. Such as playing at new casinos online, because the country has no land-based casinos. The laws around online casinos are similar to the laws seen in Canada. Where the law doesn’t specifically outlaw offshore online casinos. If a resident or visitor wants to find out more about a new casino online, they are free to do so.
A country where English is widely spoken and the talent pool consists of highly educated personnel. Singapore also has a favorable corporate tax regime and any company that owns a business in the country will own 100% of it.
The country is also ideal for businesses such as multinational organizations and international banks given the corporate tax rate of 17%. Additionally, any income that is sourced internationally is tax-exempt. Singapore is an important business hub of Asia and the growth of a foreign business with aims to succeed will not be disappointed.
The country is invested in the growth of the technology sector. Businesses with a focus on innovation and technology will feel at home in Taiwan. The Taiwanese government has also shown interest in promoting research & development and innovative solutions. The talent pool in the country is also affordable and highly educated when it comes to Information Technology.
Foreign businesses flourish in Taiwan as an operating business will also have full rights to the company, 100% ownership. Despite having a technological focus on business, Taiwan does have laws that block certain online business models. For example, online casino gaming is strictly prohibited and residents do not get to experience new casinos online, cash in casino bonuses or start online casino businesses.
5. South Korea
According to Investopedia, South Korea has been rated as the 12th largest economy in 2020. The service and manufacturing industries are an important part of the economy. Additionally, the Information Technology industry is also seen as the country’s most outstanding sector.
Furthermore, the country has a large talent pool of skilled labor and is known for developing high-speed internet services as well as flat display technology. An industry that encompasses so many facets in the lives of consumers around the world. An industry worth investing in and positive outcomes for business growth.
The Potential in Asia
The sheer amount of business possibilities in Asia is undeniable. The favorable conditions for business created is sure to attract even more businesses to the continent. It is host to developing technologies and corporate infrastructure that is sure to live up to being called a global financial hub. Knowing what you know now if foreign expansion is part of your business plan, then Asia should be at the top of your list.