Setting up a company in Asia? Or planning to tap into Asia?
The following countries have wide market to tap on:
Thailand company formation allows international entrepreneurs to legally conduct business in Thailand. Despite political instability in the country, Thailand company formation remains the key to doing business. The following information enables investors to determine whether Thailand company formation is the optimum corporate structure to fulfill international business objectives:
1.1 Thailand Company Formation
The following is an overview of company formation in Thailand
If you are considering the prospect of establishing a Thailand branch of an existing company or starting a new business in Thailand, there are numerous factors to consider and decisions to make, particularly if you wish to proceed in accordance with Thai company law.
You will need to decide what form of business entity to establish. In Thailand, businesses can be incorporated as sole proprietorships, limited and unlimited partnerships, private limited companies, public limited companies, branch offices and representative and regional offices. Although there are numerous “business consultant” services providing company registration services, the careful business person will need a professional licensed lawyer.
There are numerous laws that will affect you and your company in Thailand (and abroad). Merely filling out forms without the knowledge of the application of the law can lead to serious complications and other problems.
1.2 How do get started?
Q: What type of business entities can be incorporated in Thailand?
Businesses can be incorporated as sole proprietorships, limited and unlimited partnerships, private limited companies, public limited companies, branch offices and representative and regional offices.
Q: How much capital is required to assemble a company in Thailand?
The minimum capitalization for a Thai company is a nominal amount as required by law. However, 100,000 baht is generally the lowest capitalization seen. A company with foreign shareholders normally requires a registered capital of 2,000,000 baht, in order to support a visa and work permit for a single non-Thai. However, in order to obtain a license normally a greater capitalization amount is required.
Q: How long does it normally take to incorporate a company?
The amount of time required for incorporation in Thailand is dependent upon the type of company that is incorporated and whether the company is incorporated under the treaty of Amity or the BOI. A basic company can be incorporated in as few as 2-3 weeks.
Q: Why should I hire your law firm to incorporate my company?
You should build your business on solid foundations. Our licensed lawyers have the experience and knowledge to help you to establish your company the right way. We do quality work and strive for long term relationships with our clients. You can read more about us orcontact us for more information.
Thailand company formation generally requires that companies must be registered with enough capital to cover general operating costs, usually 25% of the total listed registered capital. According to the 2011 Doing Business Surveyby the World Bank, Thailand is the world's 19th easiest place to do business. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business.
According to DTZ's 2010 Global Occupancy Cost Report, Thailand is the second cheapest place in the Asia Pacific region in regards to occupancy costs. Thailand, more specifically Bangkok has a total occupancy cost of US$23.20 per sq ft per annum; indicating that running a business would be substantially cheaper in Thailand compared to other countries in the region.
Thailand is a world-renowned tourist destination, as evidenced by Travel + Leisure magazine's World Best Awards readers survey. When asked which city in the world provided the best tourist experience, the magazine’s readers voted Bangkok as the best in the world. Thailand company formation can enable entrepreneurs to capitalize on Thailand’s world-class tourist economy.
Thailand has signed double taxation treaties with 54 countries to support Thailand company formation. A list of the countries can be found at the Revenue Department website.
The Treaty of Amity is a treaty between the United States of America and Thailand. It allows for US citizens, or companies, to wholly own a company in Thailand and hence operate their business in Thailand as would a Thai national. This is an attractive incentive for US citizens considering company formation in Thailand.
Healy Consultants will open a Thai or international corporate bank account to support Thailand company formation. Healy Consultants works with internationally recognised banks such as HSBC, Standard Charteredand Citibank to provide corporate bank account services.
1.4. Disadvantage of Thailand Company Formation
A Thai company is required to submit annual tax returns and audited financial statements following Thailand company formation.CSBC ASIA assists clients efficiently and effectively to complete this annual statutory obligation.
Thailand is negatively ranked as the world's 62nd freest economy in the Heritage Foundation's 2011 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets. Furthermore, Thailand ranks just 38th in the Global Competitiveness Report 2010-2011compiled by the World Economic Forum.
Under existing Thailand company formation law, the rate of corporation tax is 30% on net profit for Thai company and 30% on profit from business in Thailand for a foreign company. However, some Thai companies do qualify for reduced corporate tax, more information can be found on the Thai revenue department website.
Thailand's military government has proposed changes to the country's Foreign Business Act to restrict foreign ownership of Thai Companies. Thailand is ranked 78th least corrupt country in the world, according to the 2010 Corruption Perceptions Index by Transparency International, a global measure of corruption among public officials and politicians.
For a private limited company, a minimum of three shareholders is required. 100% foreign ownership is permitted, except for activities restricted to Thai nationals. All companies are required to keep a register of shareholders, which is available for public viewing.
In the past couple of years, since its accession to the World Trade Organisation (WTO) on 11 January 2007, Vietnam has continued to take active steps to revamp its legal framework for business and investment in Vietnam. The changes are largely favourable to both foreign and local investors.
Since the introduction in 2006 of both the Investment Law, which regulates investments in Vietnam, and the Law on Enterprises, which sets out the types of corporate vehicles investors may establish to carry out their investment projects, additional legislation has been enacted to further enhance both foreign investment and foreign invested business operations in Vietnam. Together, the Investment Law and the Law on Enterprises create a more favourable and clearer legal framework for doing business in Vietnam. Local and foreign businesses alike now enjoy an excellent backbone for future development in Vietnam.
All types of companies must operate according to the same corporate governance rules. This should create a level playing ﬁeld for doing business. The failure to comply with these corporate rules will lead to personal liability for directors or ofﬁcers of a company, regardless of whether the company is foreign-owned, Vietnamese-owned or State-owned. Similarly, the Investment Law also now applies to both local and foreign investors
2.1 Vietnam Company Formation
Vietnam company formation is difficult for foreign investors because of complex licensing procedures. That said, economic reforms are attracting foreign, export-orientated manufacturing industries. Healy Consultants offers a complete Vietnam company formation service. The following information will help you determine whether Vietnam company formation is the optimum corporate structure to fulfill your international business objectives:
2.1.1 Advantages of Vietnam Company Formation
Vietnam company formation assists our clients to legitimately conduct business in Vietnam with 100% foreign ownership in selected sectors.
A Vietnam Joint Venture is an ideal way for foreign investors to gain ready access to local markets.
A representative office is a cost-effective way for global companies to create a market presence in Vietnam.
Vietnam company formation requires a minimum of one director, who need not be resident in Vietnam.
There are no minimum capital requirements with Vietnam Company formation except for a few specific business lines such as real estate, insurance, aviation services, banking and securities.
Vietnam joined the World Trade Organisation (WTO) in January 2007, obliging it to reform its legal system, strengthen intellectual property rights protection and lift trade barriers.
Following Vietnam company formation, CSBC ASIA can open a corporate bank account with one of the world's leading retail banks, including HSBC, Standard Chartered and Citibank.
2.1.2 Disadvantage of Vietnam Company Formation
A Vietnamese company must pay a corporation tax of 25% on all taxable income. The corporation tax applicable to business establishments conducting exploration and exploitation of oil and gas and other valuable and rare natural resources is between 32% and 50%. Preferential corporation tax of 20% and 10%, in the form of incentives, apply if the enterprise meets specific criteria.
Examples of the challenges of Vietnam company formation include i) to obtain a Vietnam branch office license, the foreign company must have been in operation for three years ii) all foreign documents must be translated into Vietnamese and notarised by a Vietnamese state notary or Vietnamese embassy or consulate.
A minimum of two shareholders is required with Vietnam company formation.
Vietnam is negatively ranked as the world's 139th freest economy in the Heritage Organisation’s 2011 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets.
Vietnam company formation is complex, and this is reflected in Vietnam's low ranking of 78th in the World Bank's Doing Business 2011 Survey. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business.
Vietnam is negatively ranked 59th in the Global Competitiveness Report 2010-2011, by the World Economic Forum, one of the world’s most comprehensive and respected assessment of countries’ competitiveness, offering invaluable insights into the policies, institutions, and factors driving productivity.
Vietnam suffers from a poor international business reputation. For example, Vietnam is negatively perceived as the world's 116th least corrupt country in the 2010 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians.
Malaysia company formation helps entrepreneurs legitimately conduct business in Malaysia and the Asia Pacific region. The most common form of company for foreign investors is the Sendirian Berhad (Sdn Bhd) private limited company. The following information helps determine whether Malaysia company formation is the optimum corporate structure to fulfill international business objectives.
3.1. Advantages of Malaysia Company Formation
Malaysia company formation is straightforward and cost-effective. According to the 2011 Doing Business Survey by the World Bank, Malaysia is the world's 21st easiest place to do business. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business.
A Malaysian company accesses double taxation treaties with 68 countries, including the world’s leading economies (see the Inland Revenue Board of Malaysia website).
The OECD has recognised Malaysia as having substantially implementing the required tax related standards and hence placed the jurisdiction on the 'white list'.
In order to attract and maintain foreign investment, some laws in regards to foreign ownership are being relaxed in Malaysia. The foreign ownership limit of stock brokerages is to be increased to 70% from 49%. There can now be 100% foreign control in wholesale fund management firms. The limit for unit trust companies has also been increased to 70%.
Malaysia is ranked 66th out of 182 countries, according to the United Nations Human Development Index(HDI). The report rates a country on its overall life expectancy, literacy, education and living standards. This HDI ranking classifies Malaysia in the High Human Development quadrant.
Malaysia is positively ranked as the 26th most competitive economy in the World Economic Forum's Global Competitiveness Report 2010-2011. Furthermore, In its 2010 World Competitiveness Yearbook, the Switzerland-based IMD positively ranks Malaysia as the world’s 10th most competitive economy. The ranking takes into account factors including economic performance, government efficiency, business efficiency and infrastructure.
Following Malaysia company formation, CSBC ASIA will open a corporate bank account with one of the world's leading retail banks, including HSBC, Standard Chartered and Citibank.
3.2 Disadvantage of Malaysia Company
As Malaysia company formation requires approval from specific regulatory authorities when foreign ownership is involved, Malaysia is perceived negatively as the world’s 53rd freest economy in the Heritage Foundation’s2011 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets.
A Malaysian company pays 25% corporate profits tax on all income. Furthermore, withholding taxes of 10-20% apply with possible reductions dependent on any applicable tax treaty. Following Malaysia company formation, annual audited financial statements and a tax return are submitted to the Malaysian authorities. Every Malaysian company is required to appoint an auditor approved under the Malaysia Companies Act. Healy Consultants will assist our clients efficiently and effectively to complete this annual statutory obligation.
A minimum of two directors and two shareholders is required with Malaysia company formation. The directors must be resident in Malaysia. A register of directors is available for public inspection following Malaysia company formation.
4. India Company Formation
India company formation is an ideal way for international entrepreneurs to conduct business in one of the world's most rapidly growing economies in recent years. The following will help you determine whether India company formation is the optimum corporate structure to fulfill your international business objectives.
4.1. Advantages of India Company Formation
India company formation allows entrepreneurs to be legitimately tax-exempt for the first five years of operation of their company, and 50% tax-exempt for the next five years if the company is set up in one of India's Special Economic Zones.
India is a popular business outsourcing location due to the wide availability of low cost, English-speaking labour. 100% foreign ownership is permitted with India company formation.
An Indian company accesses double taxation treaties with approximately 70 countries including Australia,Canada, China, Japan, New Zealand, Russia, Singapore, South Korea, Thailand, the UK and the US to support India company formation.
Following India company formation, CSBC ASIA will open a corporate bank account with one of the world's leading retail banks, including HSBC, Standard Chartered and Citibank.
4.2. Disadvantage of India Company Formation
India company formation is challenging due to complex bureaucracy and regulations. According to the World Bank's Doing Business 2011 Survey, India ranks poorly at 134th for its ease in which to do business in. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business. In addition, India is negatively ranked as the world's 87th least corrupt country in the 2010 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians.
A minimum paid up capital of INR100,000 (US$2,228) is required for India company formation. In the event that the company uses words such as India or Hindustan in its name, then the minimum paid up capital requirement will be INR 500,00(US$11,140).
A minimum of two shareholders and two directors is required with India company formation. The directors and shareholders need not be resident in India. Corporate directors are not permitted and a public register is available, giving details of shareholders and directors.
Domestic corporations are subject to tax at a basic rate of 35% and a 2.5% surcharge. Foreign corporations have a basic tax rate of 40% and a 2.5% surcharge. In addition, an education cess at the rate of 2% on the tax payable is also charged. Corporates are subject to wealth tax at the rate of 1%, if the net wealth exceeds Rs.1.5 mn ( appox. $ 33,420).
Following India company formation, it is necessary to prepare and submit annual audited financial statements and file tax returns with the Indian government and tax authorities.
Indian companies are subject to foreign exchange controls. According to the Heritage Foundation's2011 Index of Economic Freedom India is ranked very poorly for having the world's 124th-freest economy, and scores at 53.4% in terms of investment freedom and capital flows. The survey is a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets.
Philippines company formation is complicated by inconsistent incorporation regulations, lengthy administrative procedures and lack of transparency over government costs. In addition, the Philippines suffers from a poor reputation as a place to do business, with perceptions of corruption and political instability. However, the Philippines is open to foreign investment and many international entrepreneurs build successful, profitable businesses in the country. The following information will help you determine whether Philippines company formation is the optimum solution to fulfill your international business objectives:
5.1. Advantage of Philippines Company Formation
Foreign investors who choose Philippines company formation can take advantage of tax holidays of between 2 and 6 years upon registration. Companies operating in special economic zones pay a corporate tax rate of merely 5% on gross income.
A business can be 100% foreign-owned if it is located in an Export Processing Zone or Special Economic Zone and up to 100% foreign ownership of domestic market enterprises is allowed except for specific areas listed on the Foreign Investments Negative List.
A range of investment incentives are available to support Philippines company formation. For example, the Board of Investment (BOI) offers grants to foreign investors who invest in a 'pioneer' industry, as defined by the government. A full list of pioneer industries is identified in the Philippines Investment Priorities Plan (IPP).4.The Philippines is a member of the Association of Southeast Asian Nations (ASEAN). Entrepreneurs who choose Philippines company formation therefore gain access to key markets in ASEAN member states via preferential trade deals.
5.2. Disadvantage of Philippines Company Formation
Philippines company formation and corporate bank account opening is complex and time consuming due to bureaucracy in the country. On average, client engagements last for eight weeks. The Philippines is negatively ranked as the 134th least corrupt country in the 2010 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians.
Philippines company formation requires a minimum of 5 shareholders and 5 directors. The majority shareholding must be Filipino, unless 100% foreign ownership is granted.
Foreign investors choosing Philippines company formation should prepare for a minimum paid-up capital of US$200,000.
Companies outside the special economic zones are subject to a corporate tax of 32%.
A statutory audit is required for all foreign corporations and branches. An annual return must also be submitted to the Bureau of Internal Revenue.
Indonesia company formation is a legitimate way for international entrepreneurs to conduct business in Indonesia and throughout the Association of South East Asian Nations (ASEAN) region. The following will help you determine whether Indonesia company formation is the optimum corporate structure to fulfill international business objectives:
6.1. Advantage of Indonesia Company Formation
An Indonesian company can be 100% foreign-owned and controlled. For more information on an Indonesian wholly-owned foreign company, visit our Indonesia Wholly-Owned Foreign Company (PMA) page. An Indonesia Representative Office can also be 100% foreign-owned and controlled, but is not permitted to make direct sales in Indonesia.
Indonesia company formation permits entrepreneurs access to a network of double taxation treaties with countries including Australia, France, Germany, Singapore, South Africa, the US and the UK.
Indonesia company formation can be hampered by foreign investment restrictions, uncertain government costs and a lack of regulatory transparency. In terms of the ease of doing business, Indonesia is poorly ranked at 121st, according to the 2011 Doing Business Surveyby the World Bank. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business.
With the exception of a representative office, a minimum of two shareholders and one directors is required to complete Indonesia company formation. The shareholders and directors details are available on a public register.
An Indonesian representative office is not allowed to undertake revenue generating activities.
An Indonesia Joint Venture company requires an Indonesian citizen to hold a share of at least 5% in the Company.
An Indonesian company is liable to pay a corporation tax of 30% on income sourced in Indonesia and internationally. Capital gains are taxed at up to 30%. Additionally, Indonesia is positively ranked as the world's 114th freest economy in the Heritage Organisation’s 2010 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets.
Following Indonesia company formation, most entities are required to submit an annual tax return and audited financial statements.