Asian trading companies

Asian trading companies

Wholly foreign owned trading company options in AsiaIndonesiaThailandPhilippinesChina
Can our Client legally register for VAT without a local entity?NoNoNoNo
Healy Consultants’ recommended local business entity?LLCLLCBranchLLC
Estimate of total engagement setup costs US$? See draft invoice embeddedClick linkClick linkClick linkClick link
Our Client will wholly own this entity?YesYesYesYes
Must hire local staff including country manager or bank signatory?YesNoYesYes
Is the local entity subject to VAT and corporate income tax on local sales?YesYesYesYes
Must our Client travel to Asia during engagement?NoYesNoNo
If we start engagement now, how soon can our Client sales invoice local customers3 months3 months4 months4 months
Minimum paid up share capital? US$190,00060,000200,00015,000
Legal considerations
Legal entity name under local commercial lawLLCAmity Treaty llcBranchWOFE
A virtual office premises lease is required before company registration?YesNoYesYes
A corporate bank account to be opened before legal company incorporation?NoNoYesYes
Resident entity manager required?YesNoYesNo
Minimum number of directors?1111
Minimum number of shareholders?23*11
Corporate shareholders allowed?YesYesYesYes
Public register of shareholder and directors?YesYesYesYes
This entity enjoys limited liability?YesYesNoYes
Tax and accounting considerations
Standard VAT rate to be added to our Client sales invoices to local customers10%7%12%17%
How often must our Client submit VAT reports to local Government?MonthlyMonthlyMonthlyMonthly
Can our Client recover input VAT incurred prior to registration?NoNoNoNo
Annual corporation tax payable on net profits in the country?25%20%30%25%
Annual financial statements and tax return to be submitted to the Government?YesYesYesYes
Annual independent statutory audit required?NoYesYesYes
Country double tax treaty agreementsClick linkClick linkClick linkClick link
Standard withholding tax rate20%10%15%10%
Logistics considerations
What details should be included in our Client sales invoice to local customer?Click linkClick linkClick linkClick link
A simple practical guide to country VAT?Click linkClick linkClick linkClick link
Can sign contracts with local customers?YesYesYesYes
Allowed to invoice local customers?YesYesYesYes
Average monthly salary of a skilled employee? US$8001,0001,0001,000
Average monthly salary of an unskilled employee? US$250300250450
Average monthly warehouse rental of 500 sq metre space? US$2,5002,0001,5003,000

Contact us

For additional information on our Asia Pacific incorporation services, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Kunal Fabiani, directly:
client relationship officer - Kunal