Holding / Managing company for the ASEAN market

[2fire]

Dear OffshorCorpTalk members,

I would like to start sales of my products (medical) in the ASEAN market.
For that reason, I would like to establish a company (New Co.) in one of the ASEAN countries
which will hold subsidiary companies in each ASEAN state and effectively manage & supply goods to them.

I see that goods will be imported by New Co. to the Free Zone warehouse (200 sqm) and
will be distributed based on the needs of each local office.
New Co. will be the parent company for all subsidiaries.
New Co. will have up to 10 persons hired (affordable salaries).

I am personally looking for a possibility to have a work VISA
with a local salary and a nice place to live whenever I want to come
and keep my income safe.

Considering all mentioned above, which country you would pick up

Brunei
Cambodia
Indonesia
Malaysia
Myanmar
Philippines
Singapore
Thailand
Vietnam

 

[wellington]

Not Thailand, we spent millions... setting up a office etc there.

During Covid we couldn't even attend the office whereas elsewhere in the country BAU.

We opted to close down the company and move or rather extend on our infrastructure in ZA, and India - no issues.

Two issues popped up in Thailand.

• The Government forced 'investment' (from main overseas company) to be treated as 'Revenues' = means investment into investing into the company meant tax on the amount...
• Laying off staff - staff able to go and buy cars, houses with their severance (longer in salary and the salary for skilled staff means larger pay off.
• When the company closed you have to liquidate assets - the assets sell for 15-20% of real value but lack of demand and money issues in the country, you pay tax on the liquidation.

The country has some quality staff but the structure and red tape make it unviable, an unmitigated financial disaster, fortunately absorbed by the group.

Dear OffshorCorpTalk members,

I would like to start sales of my products (medical) in the ASEAN market.
For that reason, I would like to establish a company (New Co.) in one of the ASEAN countries
which will hold subsidiary companies in each ASEAN state and effectively manage & supply goods to them.

I see that goods will be imported by New Co. to the Free Zone warehouse (200 sqm) and
will be distributed based on the needs of each local office.
New Co. will be the parent company for all subsidiaries.
New Co. will have up to 10 persons hired (affordable salaries).

I am personally looking for a possibility to have a work VISA
with a local salary and a nice place to live whenever I want to come
and keep my income safe.

Considering all mentioned above, which country you would pick up

Brunei
Cambodia
Indonesia
Malaysia
Myanmar
Philippines
Singapore
Thailand
Vietnam

Probably best Singapore for main company - just recognise if selling in to countries you will have the following issues.

• Licenses
  • Bribes
    • Bribes for customs to get them through orderly.

We had a 100,000$ bribe demand - customs from Bangkok to import server hardware on-top of the taxes otherwise they would hold them for a 'while'.

*also had a friend that was importing marine fish (aquatic) and they would tell him routinely back in the day - pay up or collect when they are ready to be buried - i didn't take that seriously, until we established a operating company in Thailand.

We told them to keep it in the end, legally can't pay bribes (criminal in our own countries).

And don't get me started on BOI (Thailand) that's a massive shake down also...

 

[2fire]

Not Thailand, we spent millions... setting up a office etc there.

During Covid we couldn't even attend the office whereas elsewhere in the country BAU.

We opted to close down the company and move or rather extend on our infrastructure in ZA, and India - no issues.

Two issues popped up in Thailand.

• The Government forced 'investment' (from main overseas company) to be treated as 'Revenues' = means investment into investing into the company meant tax on the amount...
• Laying off staff - staff able to go and buy cars, houses with their severance (longer in salary and the salary for skilled staff means larger pay off.
• When the company closed you have to liquidate assets - the assets sell for 15-20% of real value but lack of demand and money issues in the country, you pay tax on the liquidation.

The country has some quality staff but the structure and red tape make it unviable, an unmitigated financial disaster, fortunately absorbed by the group.


Probably best Singapore for main company - just recognise if selling in to countries you will have the following issues.

• Licenses
  • Bribes
    • Bribes for customs to get them through orderly.

We had a 100,000$ bribe demand - customs from Bangkok to import server hardware on-top of the taxes otherwise they would hold them for a 'while'.

We told them to keep it in the end, legally can't pay bribes (criminal in our own countries).

And don't get me started on BOI (Thailand) that's a massive shake down also...

Thank you very much for sharing your experience about Thailand.
Thai actually was on my priority list due to medical tourism and possibly a good market for me.

 

[JohnLocke]

From the list you have provided as options, I would choose Malaysia, also because it, "all things considered," seems like one of the more serious places but where there are still tax advantages to placing a business.

Analyzing Asian Tax in Some of the Most Popular Jurisdictions Among Entrepreneurs

Asian tax is a concept that may draw many entrepreneurs’ attention these days. However, before digging deeper, you should know that there is no such thing as a pure tax haven in Asia. There are, indeed, some tax havens in the middle of nowhere, somewhere, faraway. None of them in Asia, though…...

www.offshorecorptalk.com

 

[2fire]

From the list you have provided as options, I would choose Malaysia, also because it, "all things considered," seems like one of the more serious places but where there are still tax advantages to placing a business.

Oh, I really loved Malaysia on the private level.
Salaries look also reasonable.

Analyzing Asian Tax in Some of the Most Popular Jurisdictions Among Entrepreneurs

Asian tax is a concept that may draw many entrepreneurs’ attention these days. However, before digging deeper, you should know that there is no such thing as a pure tax haven in Asia. There are, indeed, some tax havens in the middle of nowhere, somewhere, faraway. None of them in Asia, though…...

www.offshorecorptalk.com

The article greatly describes taxation in Malaysia and Singapore.
I just do not understand why Singapore a way more popular compared to Malaysia.

 

[benbao]

Because Singapore just works and Malaysia... well it doesn't

it's a nice country and you can do a lot of things but I wouldn't bring serious money into any of these places except Singapore

 

[Sols]

Singapore is the obvious choice nine times out of ten. None of the rest are even comparable when it comes to international business.

The only times I'd not pick Singapore is if there was a compelling reason not to. The only drawback of Singapore in this case is that salaries are higher than elsewhere. But then ask yourself, what's the price of doing international business from a place like Vietnam, Myanmar, Indonesia, or Cambodia where banking is terrible, bureaucracy atrocious, and international repute can cause meaningful impediments to business growth compared to just paying a couple of Singaporeans a decent salary.