Introduction to Doing Business in Asia Pacific

Introduction to Doing Business in Asia Pacific

June 12, 2024

Summary of Doing Business in Asia Pacific by Kreston Global in collaboration with Kreston member firms.

Introduction to Doing Business in Asia Pacific

Navigating the business landscape of the Asia Pacific region offers immense potential for growth and profitability, thanks to its dynamic economies and diverse markets. As a hub for innovation and development, the region presents a wealth of opportunities driven by digital advancements, sustainable initiatives, and strategic trade agreements. Kreston Global, with its extensive network of member firms and professionals, stands ready to guide businesses through the complexities of market entry, regulatory compliance, and strategic investment. This guide provides essential insights and practical advice for entrepreneurs and investors looking to establish and expand their operations in some of the world’s most promising economies.

Key Selling Points for “Doing Business in Asia Pacific”

Comprehensive Regional Expertise

Kreston Global offers unparalleled expertise in the Asia Pacific region, covering 21 diverse markets with 46 member firms and over 6,000 professionals. This extensive network allows businesses to tap into local knowledge and global insights, providing a robust support system for international expansion. With capabilities spanning market, regulatory, and tax requirements, Kreston Global ensures that businesses are well-equipped to navigate the complexities of the Asia Pacific business landscape. Doing Business in Asia Pacific, page 1

Strategic Investment Opportunities

The Asia Pacific region is ripe with investment opportunities, driven by key trends such as digital transformation and carbon neutrality in China, and significant foreign investment prospects in India. Australia’s robust trade agreements further enhance its attractiveness to regional investors. Kreston Global’s research highlights the leading role of India and China in global expansion, making them prime targets for businesses looking to grow internationally. This strategic positioning enables Kreston Global clients to capitalize on emerging markets and innovative sectors. Doing Business in Asia Pacific, page 1

Efficient Business Setup and Regulatory Guidance

Kreston Global provides detailed guidance on setting up businesses across various Asia Pacific countries, ensuring compliance with local regulations. In Thailand, for instance, the firm outlines the process for registering partnerships, limited companies, and sole proprietorships, along with the necessary legal and financial requirements. In China and Australia, Kreston Global offers insights into optimal business structures, tax incentives, and payroll obligations, streamlining the setup process for foreign investors. This expertise helps businesses minimize risks and maximize efficiency from the outset. Doing Business in Asia Pacific, page 3

For more detailed information and tailored solutions, access the full document here.

Key Investment Opportunities

  • Digital China and Carbon Neutrality: Investment opportunities driven by digital transformation and carbon neutrality initiatives.
  • Australia: Attracting regional investors through trade agreements.
  • India: Seeking $100 billion in foreign investment in 2023.

Kreston Global in Asia Pacific

  • Presence: Kreston Global has 46 member firms across 21 markets in the Asia Pacific region.
  • Research Insights: India and China are leading in global expansion efforts.

Setting Up a Business in Thailand

  • Business Structures: Partnerships, limited companies (most popular among foreign investors), and sole proprietorships.
  • Registration Time: Approximately one week for private limited companies and one month for public limited companies.
  • Minimum Investment: Two million Thai Baht for a work permit.

Legal and Financial Requirements in Thailand

  • Steps to Start a Business:
    1. Reserve a company name.
    2. Prepare necessary documents.
    3. Register with the Department of Business Development, Ministry of Commerce.
  • Foreign Ownership: Limited to 49% unless exempted by a Foreign Business License.
  • Tax: Corporate income tax exemptions for BOI-approved businesses and VAT registration for businesses with a gross income of 1.8 million Thai Baht or more.

Investing in China

  • Economic Cycle: Driven by innovation and higher GDP per capita.
  • Key Sectors: Science and technology, artificial intelligence, and new energy industries.
  • Investment Trends: Focus on digitalization and supply chain industries.

Setting Up a Business in China

  • Business Structures: Representative Office, Wholly Foreign-Owned Enterprise (WFOE), Equity Joint Venture (EJV), and Cooperative Joint Venture (CJV).
  • Minimum Investment: No minimum registered capital except for specific naming conditions.
  • Legal Requirements: Various entities available for foreign investment, each with distinct requirements and benefits.

Investing in Australia

  • Economic Recovery: Demonstrated resilience and economic recovery post-pandemic.
  • Key Sectors: Renewable energy, infrastructure, healthcare, and real estate.
  • Investment Structures: Sole trader, partnership, trust, and company.

Legal and Financial Requirements in Australia

  • Tax and Payroll: Corporate tax rates of 30% (25% for small entities), GST of 10%, and various state taxes.
  • Employee Benefits: FBT, annual leave, long service leave, and compulsory superannuation contributions.

Investing in India

  • Economic Growth: India is expected to attract $100 billion in foreign direct investment in 2023, with a focus on healthcare, renewable energy, IT, and real estate.
  • Business Setup Time: Typically 25-30 days, longer if foreign exchange approval is required.
  • Legal Requirements: Multiple structures available, including private limited companies and public limited companies.

Key Contacts

  • Thailand: Bayani Lauraya (Kreston Thailand)
  • China: Yiwen Ping (Zhonghui CPAs), Susan Li (Brighture Accounting and Tax Advisory)
  • Australia: Michael Goodrick and Kamal Thakkar (Kreston Stanley Williamson)
  • India: Ganesh Ramaswamy (Kreston Rangamani and Associates LLP)

For further details and specific page references, please access the full document here.