Asia tax exempt free zone companies

Summary at a glanceCambodiaPhilippinesTaiwanSouth Korea
Free zone namePhnom Penh Free ZoneSubic Bay Free ZoneKaohsiung Free ZoneIncheon Free Zone
Corporate tax payable0%0%0%0%
Average monthly salary skilled labour (US$)US$1,000US$1,000US$1,500US$3,000
Office rental square meter per month (US$)US$2.5US$5US$2.9US$3
Total company set up costsUS$14,335US$14,850US$10,345US$10,953
Subsequent annual costs (incl. audit and tax)US$3,900US$3,850US$2,300US$5,810
How long to set the company up?8 weeks8 weeks3 weeks2 weeks
How long to open company bank account?4 weeks4 weeks3 weeks2 weeks
Issued share capital requiredUS$1,000US$200,000US$1US$10,000
Corporate bank accountSCB or HSBCSCBSCBCitibank Seoul
Legal considerations
Resident director required?NoYesNoNo
Resident shareholder required?NoNoNoNo
Minimum number of directors1511
Minimum number of shareholders2511
Resident company secretaryYesNoNoNo
Individual shareholders allowedYesYesYesYes
Individual shareholders allowedYesYesYesYes
Corporate director(s) allowedNoNoNoNo
Public register of shareholders and directorsYesYesYesYes
Tax and accounting considerations
Corporate tax payable0% (for 9 years)5%0% (no business within Taiwan)0% (no business within Taiwan)
Statutory audit requiredYesYesYesYes
Annual tax return to be submittedYesYesYesYes
Access to how many double tax treatiesNone423850
Withholding tax payable14%30%20%20%
How long to get work permit approved3 months3 months3 months3 months
Can the entity hire expatriate staff in the country?YesYesYesYes
Logistic considerations
Tenancy agreement before incorporation?NoYesYesYes
Do you visit the country for incorporation?NoNoYesNo
Allowed to invoice/sign sales contracts with local clientsYesYesYesYes
Can rent office premises in the countryYesYesYesYes
Allowed to import raw materials?YesYesYesYes
Allowed to export goods?YesYesYesYes
Employment visa fees (US$)US$4,950US$4,250US$3,850US$5,950
What % of population speak English10%78%15%10%
Literacy rate (%)88%88%98%98%
Average monthly salary unskilled labour (US$)US$300US$500US$950US$1,200
Computer literacy rate (%)50%55%85%90%
Internet connectivity ratingAverageAverageVery GoodExcellent
Global business efficiency index score (out of 100)48517864
Ease of doing business global ranking (lower better)1371081674
GDP per capita (US$)US$946US$2,587US$20,328US$22,590
Population (in million)14.8m96m23m50m
Unemployment rate2.7%7.3%4%2.9%
Inflation rate (2013)2.9%3.2%-0.79%1.3%
GDP 2012 (US$ billion)US$14bnUS$14bnUS$14bnUS$14bn
Real GDP Growth rate (2012)Real GDP Growth rate (2012)1.9%2.5%2.3%
Estimate of engagement costs US$US$US$US$
Healy Consultants engagement fees7,9609,3505,8503,500
Company secretary and legal registered office1,1001,4509502,510
Estimate of Government registration fees1,3253504553
Tax registration fees0750550940
Corporate bank account opening3,9502,9502,9503,950
Estimate of total outgoings in Year 1US$14,335US$14,850US$15,162US$10,953
Draft sales invoice attached

Contact us

For additional information on our Asia Pacific incorporation services, please email us at Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi
singapore business federation acra - accounting and corporate regulatory authority Singapore Ministry of Manpower (MOM) Institute of Singapore chartered accountant (ISCA) Institute of Singapore chartered accountant (ISCA) saicsa icsa - institute of chartered secretaries and administrators SIngapore exchange ltd - The Asian Gateway | SGX