Asia's Best Startup Countries 2022: Top 3
Low tax rates, fast Internet, and high interest in information technology are factors that have made Asia an excellent platform for launching new projects. According to a World Bank report, the top 3 countries where it is best to start a startup in Asia in 2022 include Singapore, Hong Kong, and Thailand.
Singapore is Asia's leading financial center, which prefers to work with international banks, foreign organizations, and is reputable. The country boasts a powerful economy, a developed digital infrastructure. English is widely spoken here, so there are no problems with recruiting and doing business.
Registration of a startup in Singapore in 2022 is also beneficial because a foreigner can be the sole owner of the company. The opening procedure takes up to 2 weeks after filing all documents.
Jurisdiction for startups also has an attractive tax regime. A company that operates outside the country and the money does not end up in local bank accounts may not pay income tax. If you plan to work inside the country, the standard corporate tax rate is 17%. At the same time, the preferential rate applies on the first profit of up to 200 thousand Singapore dollars.
The low tax regime makes Hong Kong popular not only for opening startups, but also for branches of major international companies (AXA, JP Morgan, Goldman Sachs). Businesses that operate here have access to other Asian countries, especially China. Major cities such as Beijing and Shanghai are in the same time zone as Hong Kong, and there is an hour difference between Bangkok, Tokyo and Jakarta. Because of this, registering a startup in Hong Kong in 2022 is great for businesses that are targeting the Asian market.
Other perks of Hong Kong:
- Business centers and programs open specifically for startups - Cyberport, Hong Kong Science and Technology Park, Blueprint, Brinc, etc;
- The company can be wholly foreign-owned;
- English is the official language, all Hong Kong residents know it, so there will be no problems with personnel;
- Here are universities, which are on the list of the best universities in the world.
Another plus is the low tax regime. The standard corporate tax rate in Hong Kong is 16.5% for income received on the territory of the jurisdiction. There is no tax on capital gains, profits from investments, and trading in company shares. Income derived outside of Hong Kong is not taxed.
Thailand is a country with huge potential. The jurisdiction boasts a growing economy, business-friendly policies. Startups that use the Smart Visa scheme are exempt from income tax for 5 years. The standard corporate tax rate is 20% if net profit exceeds 20 million baht. For companies with less turnover, the first 300 thousand profits are not taxed. For net profits between 300,000 and 3 million, the rate is 15%.
Other advantages to starting a startup in Thailand in 2022 include the following:
- well-developed infrastructure;
- fast Internet;
- active development of co-working spaces;
- numerous IT conferences held by the world's leading companies;
- proximity to business and technology centers of other Asian countries;
- the possibility of obtaining a smart visa for investors;
- 15 Innovation Districts set up to help aspiring entrepreneurs.
A limitation may be the requirement that foreigners can own no more than 49% of a Thai company. There are sectors where the Thai government is making concessions, allowing non-residents to own more of the business. For example, a BOI company (a company approved by the Board of Investment) can be fully owned by non-residents, and the effective tax rate on profits is 0%. To learn more, contact IT-OFFSHORE specialists.