Over the years, we have seen Asia rise to be one of the fastest developing continents in terms of its infrastructure and economy. Hence, attracting millions of tourists and immigrants from every part of the world. Many investors regard Asia to be one of the finest continents for any startup to grow and become successful.
Many Asian countries like Singapore and Hong Kong offer amazing infrastructure, entrepreneurial government-funded projects for business startups, easy business registration systems, and tax incentives, etc.
In this post, we will take a brief look at the pros and cons of establishing a startup in the continent of Asia.
PROS
Below are some reasons why you should think about establishing your startup in Asia:
- LIMITED LANGUAGE BARRIER: While most Asian countries do not speak English as their first language, some, like Singapore, do. You will find an English-speaking community in most of the countries in Asia. Let’s face it, one of the reasons many investors are skeptical about establishing a startup overseas is the language barrier. This can be challenging when communicating with both your customers and employees. Although most countries in Asia have their native language, they also understand how to communicate effectively in English.
- SKILLED WORKFORCE: It is a fact of the business world that the success of your business rests on how well you can hire the best staff. Countries in Asia, like China, Japan, Hong Kong, and Singapore, etc. are known to have an enormous available pool of skilled workforce. Hence, finding the best people to help achieve your business objective is easy. Visa Express has additional information for you.
- TAX INCENTIVES: One of the challenges anyone looking to start a business oversea dreads is the tax rate of the country they intend to invest in. Luckily, most countries in Asia offer tax breaks to encourage startups by both foreign and local investors to help them be successful. Countries like Singapore exempt startups from paying tax for 3 years as long as they are not making up to more than $100,000 within that time frame. Crazy right? Afterward, businesses are expected to pay a 17 percent tax rate to the government.
CONS
Below are some cons of establishing your startup in Asia:
- FUNDING AN INTERNATIONAL STARTUP: One of the challenges you may face as a startup is finding enough funding to invest overseas. This is way different from the capital you would need to begin a new business in your own country. You will have to think about other factors like taxes, employees’ minimum wage, and business registration fees for international investors, etc.
- THE IMPLICATION OF RELOCATING: One of the factors you need to think about is moving overseas to start a new business. You will have to decide if you will be moving to a new location alone or with your family. This can be a challenging feat seeing that you are still not certain how successful your startup will be.
In conclusion, most countries in Asia offer incentives to encourage both local and foreign startups. However, you will have to decide whether or not it is worth establishing your new business there.