Over the last few years much has been made about the rise of Asian economies as disruptive players in the global economy. Their growth has certainly been phenomenal not only terms of gross domestic product (GDP) and export revenue but also for their advances in technology, human resource, product/services innovations, raw material extractions, commodity trading and international diplomacy.
With all the above in mind, many businesses have been apprehensive to consider Asia as viable market for their operations largely due to them fearing the unknown. This doesn’t have to be the case, here are the most significant reasons as to why businesses should serious keep Asia in their radar for growth and international expansion:
Urgency To Try New Things
Whilst in the past there is no denying that many Asian countries were unaware of the trends which were dominating the west, the rapid rise of the internet has enabled them to see what’s really happening around the world. This has created an appetite among Asian consumers to want those products and services which are doing exceptional well in other markets. From clothes to furniture, the demand is endless – especially aided by the large populations many of these Asian countries have. This creates an opportunity for any business wanting to increase their sales and improve their brand recognition on an international scale.
Many Asian countries are keen to encourage foreign direct investment (FDI) in their country. For this, many are willing to offer companies from abroad favorable terms when coming into their country. This includes, lower corporation tax rates when compared to domestic businesses. Similarly, particular subsidies and grants to push investment in certain aspects of a business’s operations to make it more competitive and established. Certain Asian countries also offer international businesses advise on a range of measures within their country such as regulatory frameworks, legal matters, compliance protocols and insights into significant cultural/behavioural differences.
Case Study: Hong Kong
To gain more of an idea as to why Asia should be an ideal destination for your business, it’s important to consider a case study. The case study in question being Hong Kong company formation. So why choose somewhere like Hong Kong in Asia:
Banking And Political Stability
The government is keen to encourage mores businesses within the country and with some of the biggest banks in the world making their Asian headquarters in Hong Kong, it has some of the lowest international wire transfer fees in the world.
With Hong Kong having a territorial tax system, profits made from activities outside of Hong Kong are not subject to Hong taxes. Consequently, this means that the tax rate for those classified as ‘offshore companies’, in most cases will be close to zero. As you can imagine, this is a major benefit to offshore investments coming into the country.
Lack Of Language Barriers
Hong Kong being a former colony, important figures such as bankers, lawyers, solicitors, company agents, financial advisors all speak a good standard of English so a lower risk of something getting lost in translation during verbal as well non-verbal communication. Additionally, also when putting together and finalizing written contracts and other documents.