Southeast Asia Free Zones Comparison in 2023
| Southeast Asia Free Zones | Malaysia | Vietnam | Indonesia | Thailand | Singapore |
|---|---|---|---|---|---|
| Our recommendation in order of preference | 1 | 2 | 3 | 4 | 5 |
| Summary at a Glance | |||||
| Total year 1 engagement set up costs? | US$20,050 | US$22,275 | US$18,100 | US$32,877 | US$13,340 |
| Total year 2 costs (incl. audit and tax)? | US$6,470 | US$2,455 | US$4,900 | US$2,300 | US$7,500 |
| Minimum issued share capital required? | US$1 | US$10,000 | US$300,000 | US$1 | US$1 |
| Name of the most popular free zone? | Port Klang | VSIP | Batam | Bangkok FTZ | Changi |
| Free zone mostly popular for: | Maritime | Manufacturing | Manufacturing | Manufacturing | Trading |
| Total engagement period? | 14 weeks | 21 weeks | 23 weeks | 19 weeks | 2 months |
| Exempt from corporation tax and VAT? | No | No | No | Yes | No |
| Our Client must travel? | No | No | No | No | No |
| Average monthly warehouse rental (per sq. m.)? | US$8 | US$5 | US$5 | US$4 | US$25 |
| Manufacturing allowed in the free zone? | Yes | Yes | Yes | Yes | Yes |
| Incorporation requirements | |||||
| Branch office or LLC recommended? | LLC | LLC | LLC | LLC | LLC |
| How long to secure a corporation number? | 4 weeks | 12 weeks | 12 weeks | 8 weeks | 1 week |
| Minimum number of shareholders? | 2 | 1 | 2 | 3 | 1 |
| Minimum number of directors? | 1 | 1 | 1 | 1 | 1 |
| Resident director required? | Yes | Yes | No | No | Yes |
| Resident representative or agent required? | Yes | Yes | No | No | No |
| Corporate directors allowed? | No | No | Yes | Yes | Yes |
| Public register of shareholders & directors? | Yes | Yes | Yes | Yes | Yes |
| Special permit or license required? | Yes | Yes | Yes | Yes | Yes |
| Minimum amount of paid-up capital? | US$1 | US$10,000 | US$100,000 | US$1 | US$1 |
| Tax and accounting considerations | |||||
| Global sales exempt from corporate tax? | Yes | Yes | Yes | Yes | Yes |
| Must register for GST or VAT? | 5-10% | 0-70% | 10% | 10% | 8% |
| Global sales exempt from GST/VAT? | Yes | Yes | Yes | Yes | Yes |
| Average customs tax on imports? | 8.1% | 10% | 10% | 0 - 45% | 0 – 30% |
| Social contributions payable to employees? | Yes | Yes | Yes | Yes | Yes |
| Corporation tax payable on local sales? | Depends on activity | 10% | 25% | 0% | 17% |
| Annual audited financial statements? | Yes | Yes | Yes | Yes | Yes |
| Access to how many double tax treaties? | 68 | 60 | 60 | 58 | 76 |
| Bank account characteristics | |||||
| Healy Consultants’ preferred bank? | SCB KL | HSBC Hanoi | SCB Jakarta | HSBC Bangkok | SCB Singapore |
| Do I travel to open the bank account? | No | No | No | No | No |
| Minimum deposit (USD)? | 1,600 | 1,000 | 12,000 | 1,500 | 1,000 |
| Can open US$, €, £ corporate bank account? | Yes | Yes | Yes | Yes | Yes |
| US$, €, £ corporate visa debit cards? | No | No | No | No | No |
| Country currency controls in place? | No | Yes | Yes | No | No |
| Corporate ATM card available? | Yes | Yes | Yes | Yes | Yes |
| WEF bank rating out of 144 | 35 | 132 | 60 | 37 | 4 |
| WEF ease of getting credit out of 144 | 2 | 88 | 15 | 23 | 4 |
| Logistics considerations | |||||
| Can rent premises outside free zones? | Yes | Yes | Yes | Yes | Yes |
| Can make sales to overseas Clients? | Yes | Yes | Yes | Yes | Yes |
| Allowed to make sales to local Clients? | Yes | Yes | Yes | Yes | Yes |
| Average local monthly salary? | US$2,500 | US$600 | US$800 | US$1,000 | US$4,000 |
| Can the entity hire expatriate staff? | Yes | Yes | Yes | Yes | Yes |
| How long to get work permit approved? | 2 months | 2 months | 1 month | 1 month | 4 weeks |
| Allowed to import raw materials? | Yes | Yes | Yes | Yes | Yes |
| Allowed to export goods? | Yes | Yes | Yes | Yes | Yes |
| Proximity to large port? | 23.8 km | 36.6 km | 7.5 km | 23 km | 2.1 km |
| Proximity to international airport? | 71.1 km | 14.7 km | 12 km | 17 km | 2.1 km |
| Proximity to train network? | 55 km | 15.6 km | N/A | 268 km | 1.5 km |
| Quality of country infrastructure index? | 20/144 | 112/144 | 72/144 | 76/144 | 5/144 |
| How long get expatriate work permit? | 2 months | 15 days | 1 month | 7 days | 1-10 days |
| Draft sales invoice attached | View invoice PDF | View invoice PDF | View invoice PDF | View invoice PDF | View invoice PDF |
