Creating a company in Asia: what are the procedures to pursue?
Asia is one of the most dynamic continents in the world, with a flourishing economy that attracts many foreign investors. Indeed, these entrepreneurs looking for a more buoyant and advantageous continent in terms of the market are not too interested in Europe. All this just because Asia responds perfectly to their expectations. However, it is a bit difficult to set up a business in Asia because of its specific regulations and procedures. In this article, you will learn the essentials to consider when setting up a business in Asia.
Conduct target market research
As a foreign entrepreneur looking to start a business in Asia, you must first conduct thorough research on the local market. It is for this reason that organizations like Primasia are on the market to help future entrepreneurs in the various steps to follow. Indeed, these organizations guide you to visit several markets and correctly define your objectives before embarking on this procedure.
For example, it is advantageous and wise to start with Hong Kong before expanding to China. Also, before you set up, seek to rigorously assess the existing competition in this market and determine the potential opportunities for your business. Additionally, you can hire local consultants in the market who can better help you understand consumer behaviors.
Make a wise choice of legal structure
After identifying your target market, you then need to establish the appropriate business structure for your business. It is one of the important steps in the process of starting a successful business in Asia. This saves you unnecessary constraints and checks from regulatory authorities. Indeed, there are different types of legal structures in Asia. We can count the limited-liability company (LLC), the public limited company (SA) and the branch of a foreign company.
Each of these structures has its advantages but also its disadvantages in terms of responsibility, cost and flexibility. Thus, to better understand these different options and arrive at a noble choice, it is necessary to consult a local legal advisor. This will help you better understand the specific regulations for each country in Asia and make the decisions that meet your needs.
Register your business
Once you have chosen the legal structure that best suits your business, you must proceed with its registration. The steps to take differ depending on the legal status of the company you wish to create. Also note that this step varies from country to country, depending on internal principles and the documents to be provided. Such as legal status and proof of address to confirm the registered office of your business.
Likewise, you will need to provide fairly detailed information about the shareholders and management of that company. In addition, there will be registration fees to pay, the amount of which may vary depending on the type of business you wish to create. These fees are generally intended to cover the administrative costs of registering your business.
Master the cultural aspects and business practices
When setting up a business in Asia, it is essential to take into account cultural aspects and local business practices. Mastering these elements will help you better thrive in the Asian market. In truth, each Asian country has its own corporate culture, communication norms and unspoken rules.
For example, in China, personal relationships are paramount, while in Japan, respecting hierarchies is crucial. To be successful in business negotiations in Asia, you will need to familiarize yourself with local cultural norms and expectations. This involves learning the customs, traditions and values specific to each country.