| Can our Client legally register for VAT without a local entity? |
No |
No |
No |
No |
| Healy Consultants’ recommended local business entity? |
LLC |
LLC |
Branch |
LLC |
| Estimate of total engagement setup costs US$? See draft invoice embedded |
View invoice PDF |
View invoice PDF |
View invoice PDF |
View invoice PDF |
| Our Client will wholly own this entity? |
Yes |
Yes |
Yes |
Yes |
| Must hire local staff including country manager or bank signatory? |
Yes |
No |
Yes |
Yes |
| Is the local entity subject to VAT and corporate income tax on local sales? |
Yes |
Yes |
Yes |
Yes |
| Must our Client travel to Asia during engagement? |
No |
Yes |
No |
No |
| If we start engagement now, how soon can our Client sales invoice local customers |
3 months |
3 months |
4 months |
3 months |
| Minimum paid up share capital? US$ |
190,000 |
60,000 |
200,000 |
15,000 |
| Legal considerations |
|
|
|
|
| Legal entity name under local commercial law |
LLC |
Amity Treaty llc |
Branch |
WFOE |
| A virtual office premises lease is required before company registration? |
Yes |
No |
Yes |
Yes |
| A corporate bank account to be opened before legal company incorporation? |
No |
No |
Yes |
Yes |
| Resident entity manager required? |
Yes |
No |
Yes |
No |
| Minimum number of directors? |
1 |
1 |
1 |
1 |
| Minimum number of shareholders? |
2 |
3* |
1 |
1 |
| Corporate shareholders allowed? |
Yes |
Yes |
Yes |
Yes |
| Public register of shareholder and directors? |
Yes |
Yes |
Yes |
Yes |
| This entity enjoys limited liability? |
Yes |
Yes |
No |
Yes |
| Tax and accounting considerations |
|
|
|
|
| Standard VAT rate to be added to our Client sales invoices to local customers |
10% |
7% |
12% |
17% |
| How often must our Client submit VAT reports to local Government? |
Monthly |
Monthly |
Monthly |
Monthly |
| Can our Client recover input VAT incurred prior to registration? |
No |
No |
No |
No |
| Annual corporation tax payable on net profits in the country? |
22% |
20% |
25% |
25% |
| Annual financial statements and tax return to be submitted to the Government? |
Yes |
Yes |
Yes |
Yes |
| Annual independent statutory audit required? |
No |
Yes |
Yes |
Yes |
| Country double tax treaty agreements |
Read more |
Read more |
Read more |
Read more |
| Standard withholding tax rate |
20% |
10% |
15% |
10% |
| Logistics considerations |
|
|
|
|
| What details should be included in our Client sales invoice to local customer? |
Read more |
Read more |
Read more |
Read more |
| A simple practical guide to country VAT? |
Read more |
Read more |
Read more |
Read more |
| Can sign contracts with local customers? |
Yes |
Yes |
Yes |
Yes |
| Allowed to invoice local customers? |
Yes |
Yes |
Yes |
Yes |
| Average monthly salary of a skilled employee? US$ |
800 |
1,000 |
1,000 |
1,000 |
| Average monthly salary of an unskilled employee? US$ |
250 |
300 |
250 |
450 |
| Average monthly warehouse rental of 500 sq metre space? US$ |
2,500 |
2,000 |
1,500 |
3,000 |
