Asian trading companies in 2022

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? 25% 20% 30% 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

Contact us

For additional information on our Asia Pacific incorporation services, please contact our in-house country expert, Mr. Kunal Fabiani, directly:
client relationship officer - Kunal