Asia tax exempt free zone companies in 2024

Summary at a glance Cambodia Philippines Taiwan South Korea
Free zone name Phnom Penh Free Zone Subic Bay Free Zone Kaohsiung Free Zone Incheon Free Zone
Corporate tax payable 0% 0% 0% 0%
Average monthly salary skilled labour (US$) US$1,000 US$1,000 US$1,500 US$3,000
Office rental square meter per month (US$) US$2.5 US$5 US$2.9 US$3
Total company set up costs US$16,135 US$21,850 US$18,390 US$12,953
Subsequent annual costs (incl. audit and tax) US$2,300 US$13,450 US$4,950 US$7,460
How long to set the company up? 8 weeks 8 weeks 3 weeks 2 weeks
How long to open company bank account? 4 weeks 4 weeks 3 weeks 2 weeks
Issued share capital required US$1,000 US$200,000 US$1 US$10,000
Corporate bank account SCB or HSBC SCB SCB Citibank Seoul
Legal considerations
Resident director required? No Yes No No
Resident shareholder required? No No No No
Minimum number of directors 1 5 1 1
Minimum number of shareholders 2 5 1 1
Resident company secretary Yes No No No
Individual shareholders allowed Yes Yes Yes Yes
Individual shareholders allowed Yes Yes Yes Yes
Corporate director(s) allowed No No No No
Public register of shareholders and directors Yes Yes Yes Yes
Tax and accounting considerations
Corporate tax payable 0% (for 9 years) 5% 0% (no business within Taiwan) 0% (no business within Taiwan)
Statutory audit required Yes Yes Yes Yes
Annual tax return to be submitted Yes Yes Yes Yes
Access to how many double tax treaties None 42 38 50
Withholding tax payable 14% 30% 20% 20%
How long to get work permit approved 3 months 3 months 3 months 3 months
Can the entity hire expatriate staff in the country? Yes Yes Yes Yes
Logistic considerations
Tenancy agreement before incorporation? No Yes Yes Yes
Do you visit the country for incorporation? No No Yes No
Allowed to invoice/sign sales contracts with local clients Yes Yes Yes Yes
Can rent office premises in the country Yes Yes Yes Yes
Allowed to import raw materials? Yes Yes Yes Yes
Allowed to export goods? Yes Yes Yes Yes
Employment visa fees (US$) US$4,950 US$4,250 US$3,850 US$5,950
What % of population speak English 10% 78% 15% 10%
Literacy rate (%) 88% 88% 98% 98%
Average monthly salary unskilled labour (US$) US$300 US$500 US$950 US$1,200
Computer literacy rate (%) 50% 55% 85% 90%
Internet connectivity rating Average Average Very Good Excellent
Global business efficiency index score (out of 100) 48 51 78 64
Ease of doing business global ranking (lower better) 137 108 16 74
GDP per capita (US$) US$946 US$2,587 US$20,328 US$22,590
Population (in million) 14.8m 96m 23m 50m
Unemployment rate 2.7% 7.3% 4% 2.9%
Inflation rate (2013) 2.9% 3.2% -0.79% 1.3%
GDP 2012 (US$ billion) US$14bn US$14bn US$14bn US$14bn
Real GDP Growth rate (2012) Real GDP Growth rate (2012) 1.9% 2.5% 2.3%
Estimate of engagement costs US$ US$ US$ US$
Healy Consultants engagement fees 7,960 4,850 8,545 4,500
Company secretary and legal registered office 950 2,800 950 3,500
Estimate of Government registration fees 1,325 350 45 53
Tax registration fees 950 750 950 940
Corporate bank account opening 4,950 4,950 3,950 4,950
Estimate of total outgoings in Year 1 US$16,135 US$21,850 US$18,390 US$13,943
Draft sales invoice attached View invoice PDF View invoice PDF View invoice PDF View invoice PDF

Contact us

For additional information on our Asia Pacific incorporation services, please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi
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