Asian trading companies in 2024
| Wholly foreign owned trading company options in Asia | Indonesia | Thailand | Philippines | China |
|---|---|---|---|---|
| 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 |
