Asia alternative to UAE (physical goods business)

[blabla]

Hi All

I am looking to set up an offshore company - considering UAE. However would like to consider Asia as it is closer to my base / timezone and looks cheaper

Business is physical food commodity trading with turnover c. US$10million / year

Understand Hong Kong is easy to set up but have costly year reporting requirements.

Is singapore a simpler solition for business set up and is it easy to get a bank set up?

Thanks
BB

 

[Martin Everson]

Sorry why should proximity and timezone matter for where the offshore company you are operating is registered?

None of the options you suggest are that much cheaper to run than a UAE company.

I would broaden your horizons and focus on selecting several banking options first before picking where to locate your company in 2025. Do not pick a offshore company then hunt for banking.

 

[blabla]

I was more thinking about banking indeed.

Thinking about the ideal banking / jurisdiction combo for me. Leaning to banking in Singapore or Hong Kong but how easy to set up a bank account there ? Seems fairly straightforward for UAE

 

[Martin Everson]

Thinking about the ideal banking / jurisdiction combo for me. Leaning to banking in Singapore or Hong Kong but how easy to set up a bank account there ?

Not easy if you don't live there or have economic activity there.

Seems fairly straightforward for UAE

I hope your not referring to banking here. As banking is not easy if your a non-resident.

 

[Sols]

If Hong Kong is too expensive, then so is probably Singapore. But if you're turning over 10 million and think Hong Kong is expensive, I wonder if the core issue might not be somewhere else within the business itself.

Labuan is probably the closest you'll get to UAE/Dubai in Asia. Non-resident banking is often possible, even without physical presence. But the costs are in line with Hong Kong and Singapore nowadays with the economic substance requirements.

In terms of timezones, the area between UAE and Singapore/Labuan/Hong Kong doesn't offer much that's useful for international trade, unless you count Mauritius. But places like Pakistan, India, Sri Lanka, and Bangladesh aren't places international businesses typically go to.

 

[blabla]

Not easy if you don't live there or have economic activity there.



I hope your not referring to banking here. As banking is not easy if your a non-resident.

For UAE what I have been offered is a visa and accounting opening. The whole thing incl incorporation is $7k for the first year

Are similar options (hopefully a bit cheaper) available for Singapore / HK? I don't mind travelling there occasionally, which would be easier and more enjoyable to me than UAE

 

[blabla]

If Hong Kong is too expensive, then so is probably Singapore. But if you're turning over 10 million and think Hong Kong is expensive, I wonder if the core issue might not be somewhere else within the business itself.

Labuan is probably the closest you'll get to UAE/Dubai in Asia. Non-resident banking is often possible, even without physical presence. But the costs are in line with Hong Kong and Singapore nowadays with the economic substance requirements.

In terms of timezones, the area between UAE and Singapore/Labuan/Hong Kong doesn't offer much that's useful for international trade, unless you count Mauritius. But places like Pakistan, India, Sri Lanka, and Bangladesh aren't places international businesses typically go to.

Cost is not the main issue. But trying to assess what are the options, cost and benefits / challenges for each.
Currently using seychelles + bank in Mauritius which is cheap to run and easy for audit etc. But looking for a more viable option for the long term with similar benefits (and that could also be cheaper because Mauritius bank charges 100usd/ swift, and we do 4/week so it amounts quite a bit each year)

 

[daniels27]

Cost is not the main issue. But trying to assess what are the options, cost and benefits / challenges for each.
Currently using seychelles + bank in Mauritius which is cheap to run and easy for audit etc. But looking for a more viable option for the long term with similar benefits (and that could also be cheaper because Mauritius bank charges 100usd/ swift, and we do 4/week so it amounts quite a bit each year)

You could try either Hong Kong or Singapore.

Hong Kong will cost about 500 per year and has mandatory audit, which will be about 2k per year. Banking is difficult but possible. EMIs are readily available. Banks and EMIs both offer SWIFT for about 25 USD. You could even get cheaper SWIFT with certain EMIs if you have decent Forex turnover.

Singapore will cost about 2000 per year. Audits are required above 10M SGD in both assets and turnover. Banking is not recommended locally as money remitted into Singapore is taxable. You would have to resort to foreign banks or non-local EMIs, noting that most major EMIs are licensed in Singapore. I think Amnis is not. Also note that Singapore has a 9% GST which you will pay on all corporate services and insurance. You will need a Singapore bank account in any name to get it back from IRAS.

 

[Martin Everson]

For UAE what I have been offered is a visa and accounting opening. The whole thing incl incorporation is $7k for the first year

You have $10m turnover and your concerned about $7k?

Are similar options (hopefully a bit cheaper) available for Singapore / HK? I don't mind travelling there occasionally, which would be easier and more enjoyable to me than UAE

You want Visa, account opening and incorporation for $7k in HK or Singapore?

P.S Are you from India by any chance?

 

[blabla]

You have $10m turnover and your concerned about $7k?



You want Visa, account opening and incorporation for $7k in HK or Singapore?

P.S Are you from India by any chance?

You are focusing too much about cost it not the issue here but rather localisation. I am looking for something closer to my Asia base instead of having to flight to UAE (which is an area I try to avoid whenever possible)

I am considering HK / Singapore but so far I am not getting some clear idea if it is possible and what kind of cost to expect.

And no I am not from India. Any business should also consider cost of their jurisdiction whatever the revenue (and in my case $10m with low brokerage margins and with bank swifts costing over 20k/year, analysing overall running cost of the structure is not something I overlook).

 

[blabla]

You could try either Hong Kong or Singapore.

Hong Kong will cost about 500 per year and has mandatory audit, which will be about 2k per year. Banking is difficult but possible. EMIs are readily available. Banks and EMIs both offer SWIFT for about 25 USD. You could even get cheaper SWIFT with certain EMIs if you have decent Forex turnover.

Singapore will cost about 2000 per year. Audits are required above 10M SGD in both assets and turnover. Banking is not recommended locally as money remitted into Singapore is taxable. You would have to resort to foreign banks or non-local EMIs, noting that most major EMIs are licensed in Singapore. I think Amnis is not. Also note that Singapore has a 9% GST which you will pay on all corporate services and insurance. You will need a Singapore bank account in any name to get it back from IRAS.

Thank you. Singapore bank for Singapore company is not the way to go.
Would Singapore easily open bank accounts for HK company? Anc can you recommend an agent for HK account opening?

Thanks

 

[daniels27]

Thank you. Singapore bank for Singapore company is not the way to go.

Correct. If you do all the trading in USD, you may be able to get an account opened in the US. Could be an option.

Would Singapore easily open bank accounts for HK company?

If you have a Hong Kong company, try with going Kong banks first. It normally is possible.

Anc can you recommend an agent for HK account opening?

You may be able to do yourself if you go there. Let us know, we are happy to support you.

@Martin Everson what is the deal with India? Do you have connections there or something and can help citizens?

 

[Martin Everson]

@Martin Everson what is the deal with India? Do you have connections there or something and can help citizens?

No