The 4 Best Cities to Start a Business in Asia
For the past few years, venture capitalists from all over the world have been paying a lot of attention to the Asia-Pacific region.
As per a study done by Bain in 2016, about $92 billion was funded for around 2500 investments in 2016, while in 2014; only $38.9 billion was funded for 1,357 investments.
This shows that more and more foreign investors are interested in investing money here. All in all, this part of Asia has seen the most significant gains since 2014 in the average fund values.
Furthermore, Asia has an enormous pool of talented and skilled engineers that have studied from top universities like the National University of Singapore and The University of Hong Kong.
Other than this, the national governments in Asian countries are playing a great role to grow their country into massive business hubs. Due to these reasons, the Asia-Pacific region is not the same place like it was a decade ago.
And that is not all. E-commerce and technology are the main leading areas here where about 40% of the VC investments are made in the technology industry. Two examples of companies that obtained outside VC investments and grew to be huge industries are:
- Hi-Target Digital Cloud, a Chinese corporation that specializes in 3D laser applications.
- Devsisters, a South Korean mobile game developer.
These two companies had stood at the first and second place on the list of the fastest-growing companies in Asia in 2014 by Deloitte, respectively.
Even though the cultures in these regions do not value the idea of taking risks and the process of starting up isn’t as easy as it is in Silicon Valley, the places like Hong Kong and Kuala Lumpur are known as the best places to start a company in Asia today.
Let us get into more details and talk about the top-scoring startup hubs in Asia.
- Hong Kong
Due to Hong Kong’s proximity to China, companies have been flooding into the city every since making it one of the best places to start up a business. Its ease of company incorporation for foreigners makes it even better to start a company.
Hong Kong is one of the most significant financial centers in the world and has had an enormous growth in financial technology companies since 2015.
And thanks to its simple and tax friendly structure, you can easily grow your business and gain benefits via the deductions on the tax return during the year. This city has got everything that a person would need to start a business.
Singapore is on the top of the list for having the best startup ecosystem in the region. With strong growth in social media, gaming, and e-commerce, there are about 4000 active startups in Singapore.
Other than Hong Kong, Singapore is also one of the best places to become successful.
Moreover, Singapore has been thriving for a long time now and is even the home to the Asian Headquarters of many significant USA companies like Facebook, Uber, and Google.
Other than this, the city has a potential market reach as well, since it is located between India and China.
However, the local natives have advised that it can be difficult to expand a startup beyond the borders of Singapore. Also you would need one to appoint a local to be a shareholder or director of the company. But the rules can change, or you can choose another place like Hong Kong.
- Kuala Lumpur
Kuala Lumpur is a big city in Malaysia that has about 2 million residents residing there. Even though the economy of this city is smaller than Delhi, its vicinity to the broad markets of South-East Asia makes it a charming place to begin a company.
The government of Kuala Lumpur is very supportive where, in 2013, Najib Razak, the prime minister of Malaysia created a scheme called MaGIC. This was one of the Asia-Pacific region’s greatest startup accelerators.
One example of a successful startup is GrabTaxi, that started in 2011, and today operates in six countries worldwide.
If we look at the rules and regulations in this city, it is profoundly comfortable to employ talent from the foreign countries here.
Other than that, it is way easier to open up a business where the tax-friendly environment helps you grow better with the income you earn, rather than paying a large amount of taxes every year.
If you are planning to start a business in Asia, the city of Bangalore is a top choice to go to. Bangalore is like the Silicon Valley of India. It has a concentration of investors, engineers, people, and a placid culture.
You can start your business here with a wealth of talent in these professional industries for your company.
You can have information about anything shared with you whenever you need. And with the number of people who use the internet in India, Bangalore is key to opening a technology company and expanding it.
But when it comes to the pollution and poverty stats, Bangalore is in the top again, unlike Hong Kong that does not suffer from any of these issues.
Also Read: 9 Tips For Growing A Successful Business
In today’s ever expanding global market, companies are given the freedom to choose the location to start their business. This is especially true with the relevance of the internet and technology, as most work can be done out of the office or remotely with your staff.
The decision for locating your company’s headquarters is important, as it affects your capability to hire the best talent, pay less tax, grow the company and get the right business partners and investors.
And now is the time to set your sights on Asia, with its increasing corporate benefits and significant effect in the global market. So, grab your pen and write down your business idea to begin a new journey in Asia.