Asia Pacific (APAC) has enjoyed rapid economic growth and technological advancements in the last few decades. It is the world’s largest continent, with highly developed tech hubs and infrastructure that attracts investors from all over the world. As a result, some Asian countries have outgrown most western markets in terms of their rapid growth.
Due to these reasons, APAC is one of the wisest choices to choose while selecting a region to expand your business. Of course, having an economics degree can help as well. Moving forward, we will get a deeper insight into the leading markets in APAC.
Indonesia, like Malaysia and Hong Kong, is making its appearance as a trading hub. Certainly, offshore investments can earn you money. With a GDP of $1119.19 billion, it secures its place as one of the rapidly growing economies in Asia among the top 20 in the world.
Indonesia, with its 270 million population, is known as the archipelago on the globe. In addition, Indonesia’s proximity to the other top economies like India and China makes it more attractive to investors.
Apart from a flourishing economy, Indonesia has a global tourism industry and is blessed with blissful natural resources, serving investors with a lot more benefits.
In addition to all this, for the years 2020-2021, Indonesia has reduced the cooperate income tax to 22%. This rate has further been cut down, and the companies are now required to pay just 20% in 2022.
The markets, as mentioned earlier, are just a few of the many top markets that APAC has to offer. Other markets that you may look into while planning to expand your business in APAC can be Thailand, Malaysia, South Korea, and Hong Kong.
Previously, China’s administration was reluctant in terms of protecting local markets. However, it has now opened its ways to international trade. As a result, China has now grown to become one of the most rapid-growing economies. In fact, imports from China are lowering manufacturing costs.
It is expected that China’s GDP might even outshine United States’ GDP by 2023. In 2020, China received much more direct foreign investment than the US. It attracted $163 billion, whereas the US managed to grab $134 billion. This shows how much China’s leadership and systems have gained more trust from foreign companies.
China also hosts 1.4 billion people, which means that you will enjoy access to a huge market if you expand your business there.
There are certain ways through which you can enjoy low taxes in China if you expand your business there. One way is to build your company away from coastal towns and focus on encouraged industries. The second way is to start your company under Special Economic Zones (SEZ) located in Xiamen, Zhuhai, Shenzhen, and Shantou.
China permits foreigners to build companies that are under 100% ownership of International investors. This infers how you will have absolute control over your company’s operations, just like it was back home.
Singapore successfully secures the first position in the World Bank’ survey on ease of doing business. Not only does it have one of the lowest corporate tax rates in the world, but Singapore’s administration has efficiently made it a trusted financial hub. Singapore offers a diverse range of trading and investment options for global companies.
An interesting benefit of opening your company in Singapore is keeping a wholesome amount of profit you make from the company. This is due to the fact that Singapore doesn’t charge interest on capital gains and dividends.
Singapore’s tax regime has a corporate tax rate of 17% on taxable income. However, for the foreign companies, a concessional rate has been finalized. According to which Singapore offers a discount for the first $2000 000 of taxable revenue.
A prime reason you should consider moving your business to Singapore is its multilingual and highly skilled workforce. Singapore prepares highly educated and motivated individuals through its excellent education and immigration system. Additionally, the widespread use of English makes it easier for a firm to function smoothly in Singapore.
It is important to note that in order to expand your business in APAC, the prime step is to get yourself registered as a company, in line with the local laws of your selected region. Experts in business expansion can assist you in this process and can even help you create effective strategies.