SEA Business Setup Guide
Compare company registration costs, timelines, tax rates, and capital requirements across Malaysia, Singapore, Thailand, Vietnam, the Philippines, and Indonesia.
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Frequently asked questions
Which Southeast Asian country is easiest to set up a business in?▾
Singapore is widely regarded as the easiest country for business registration, often completed in 1-2 days. It has a transparent regulatory framework, strong rule of law, and English is an official language. However, operating costs and visa requirements are higher than other SEA countries.
Do I need to live in the country to set up a company?▾
Requirements vary by country. Singapore allows remote incorporation but requires a local resident director. Malaysia requires directors to be present for bank account opening. Thailand, Vietnam, Indonesia, and the Philippines generally require in-person visits for key steps like company registration and bank account setup.
Can I own 100% of a company in Southeast Asia as a foreigner?▾
It depends on the country and business sector. Singapore allows 100% foreign ownership in most sectors. Malaysia allows it in most sectors except those requiring Bumiputera participation. Thailand restricts many sectors under the Foreign Business Act. Indonesia, Vietnam, and the Philippines each have their own restrictions.
How much does it cost to register a company in Southeast Asia?▾
Registration fees range from £150 in Vietnam to £300 in Thailand. However, total setup costs including legal fees, accounting, and licensing typically range from £2,000 to £10,000 depending on the country and business type. Singapore and Indonesia tend to have higher total costs.
What about double taxation agreements?▾
The UK has double taxation agreements with Malaysia, Singapore, Thailand, Vietnam, Indonesia, and the Philippines. These agreements prevent you from being taxed twice on the same income. However, the specific provisions vary by country, so specialist tax advice is recommended.
Do I need a local partner?▾
In some countries and sectors, yes. Thailand requires Thai majority ownership (51%) for many business activities unless you have BOI promotion. The Philippines has a 60/40 rule for nationalized industries. In Singapore, Malaysia, and Vietnam, a local partner is not legally required for most sectors but can be practically helpful.
How long does it take to get a work permit?▾
Timelines vary significantly. Singapore Employment Pass typically takes 3-8 weeks. Malaysia Employment Pass takes 2-4 weeks after company setup. Thailand work permits take 1-3 months. Vietnam work permits take 3-4 weeks. Plan for the process to take longer than officially stated.
What is the cheapest country for corporate tax?▾
Singapore has the lowest headline rate at 17%, with effective rates much lower for startups due to partial exemptions. Vietnam and Thailand both have 20% rates. Indonesia is at 22% and Malaysia at 24%. However, various incentives and exemptions can significantly reduce the effective rate in each country.
Can I open a bank account remotely?▾
Singapore is the most accommodating for remote bank account opening, with several banks offering digital onboarding. In most other SEA countries, at least one director must visit the bank in person. Some countries require all directors to be present. Plan a trip for this purpose.
What type of company should I set up?▾
The most common structure for foreign businesses is a private limited company: Sdn Bhd in Malaysia, Pte Ltd in Singapore, Co. Ltd in Thailand, LLC in Vietnam, Corporation in the Philippines, and PT PMA in Indonesia. Each has slightly different requirements for directors, shareholders, and capital.