Expanding business into Asia: Why it’s important?
Are you in the midst of expanding your business entity overseas? Then check out what The Asia Pacific region has to offer and how it will help you in expanding your business with ease!
It is commonly understood that Asia is the region with the fastest economic growth over the past few years, buoyed by a combination of market reach, rapid modernization, successful exits, fast-growing economies, talent pool, startup experience and VC investments.
According to a survey conducted by Brain, they revealed that about $92 billion was funded in 2016 for around 2,500 investments in the various industries in Asia, while in 2014, it was just $38.9 billion for 1,357 investments.
This survey reported that more and more investors are attracted towards The Asia Pacific region for funding their business. But the best part about this boom is that it isn’t restricted to just technology sectors! The other industries have also enjoyed this phenomenal growth, which has given rise to businesses from varying sectors.
The national governments in Asian countries are also playing a significant role in order to grow their country into massive technological business hubs. Moreover, the legal systems with valuable intellectual property protection help the Asia Pacific regions to attract ventures from all over the globe.
So, are you a business leader and seeking to take advantage of the opportunities in Asia? Then, below are some of the top-scoring startup hubs for the investors who are willing to expand their business in Asia regions.
Funding In Hong Kong
Due to Hong Kong’s proximity to China, Hong Kong is one of the top scoring startup hubs for many investors who want to expand their business entity in the Asia Pacific regions. The main advantage of operating your business entity in Hong Kong is its favored jurisdiction with useful intellectual property, economic stability, and no foreign exchange controls.
Being an international finance hub, Hong Kong can be used as a springboard for all the venture capitalist and business owners who are willing to have quick access in the Chinese market with a more positive or favorable business environment. Hong Kong is also ranked number three globally for the ease of doing business, according to a survey conducted by Doing Business 2017 report.
Moreover, it also offers the stability of the political and global community, with the relatively easy establishment of international corporations, low-interest rate for corporate and personal tax, no withholding tax on dividends and interest or collection of social security benefits. To be precise, this city has got everything that an investor or entrepreneur would required while starting or expanding their business entity.
Expanding your business entity in Singapore
Other than the freest economy like Hong Kong, Singapore is also at the top of the list for having the best business environment for startups. Singapore has a good quality of life, with multicultural tech and business centers in Asia that welcome innovative companies through robust intellectual property rights and low tax rates.
Singapore is located between China and India, so this city has a potential market reach and has been thriving for the past couple of years with strong growth industries like e-commerce, gaming, and social media. In fact, nearly nine out of every ten people have access to mobile phones, which makes Singapore one of the highest mobile markets of any nation globally, according to a Deloitte survey.
It is also the home of The Asian headquarters for many US companies like Uber, Google, and Facebook. Also, Singapore is one of the main transport hubs in the Asian Pacific region. However, it is still tough to expand a startup beyond the borders of Singapore because of the changing pattern in the structure of the rules and regulations.
The business owners or investors who are willing to start a new business or want to expand their existing startup in the Asian Pacific region, in that case, may choose another place like Hong Kong in order to stay away from any legal system problems.
Opening a company in Japan
The next top scoring hub in the Asian Pacific region is Japan, which is well known for its extraordinarily hard-working and skilled employees. Japan is one of the top most locations in order to check the new advanced technologies and goods. The city is also synonymous with technological advancement and innovation.
Japan is a leader for many industries, primarily in the fields of technology and robotics. But the best part about the Japanese market is its business sectors are not dominated by the well-developed international business entities. Medium-sized and small companies are also operating in the market without any legal problems.
If you are willing to start your business entity in Japan, you may have to wait for some period of time because the process for registering your property is a lengthy procedure. It requires a payment of stamp duty at a post office, payment of real property acquisitions tax, a certificate of the seller’s seal impression and application at the Legal Affairs Bureau.
Each of these Asian Pacific regions markets has its own distinct opportunities and challenges. Before taking any decision for expanding your business entity in Asia, consider all the factors such as the economic stability, tax rates, business environment, the capability to hire the best talent and legal jurisdictions.