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Japan Vs Vietnam business setup as a foreigner

Healy Consultants Group PLC
06 March, 2015

When considering where to invest in Asia there are many options out there. We can suggest two countries in this vast continent which represent great setup opportunities for any global entrepreneur - Japan and Vietnam.


Why invest in Japan?

Japan boasts easy and transparent company setup, with minimal red tape. While for example in many South-East Asian countries local partnership is required to setup a new company, in Japan foreign entrepreneurs may own 100% of a Japanese company with no minimum investment requirement.

The optimal business entity type is The Godo Kaisha . This vehicle is the most common corporate type used for Japanese subsidiaries, when the proposed business does not require a complex capital structure. Alternatively, trading businesses in Japanese free zones can enjoy multiple business setup incentives, including:

  • No custom duties on imports and exports;
  • Flexible labour laws and
  • Faster business incorporation timeliness.

Japan business setup still requires appointing of a local resident director, but this can be easily negated via expert nominee director services.


Why invest in Vietnam?

While Japan is a safe bet for reaching large, profitable clientele, the operational costs of this mature market can be very high. Vietnam, these days, is more cost-efficient than most Asian countries. In 2014 multiple business setups moved their operations in Vietnam, rather than China due to lower business costs.

Vietnam has slower setup procedures which may take up to two months due to significant Government red tape. However, local regulations allow 100% foreign-owned business setups which is the preferred option for almost all foreign investors.

Conveniently, there are multiple advantages to setting up a Vietnamese business, including:

  • Only one director of any nationality is required;
  • Only one shareholder of any nationality is required;
  • Only one US$1 is the required issued share capital;
  • There is no travel to Vietnam required;
  • Vietnam boasts the lowest labour costs in the region;
  • Being part of ASEAN secure no import duties with multiple countries in the region.


Conclusion

Both Japan and Vietnam offer significant advantages to setting up new business in their territories. From reputable, stable markets such as Japan to cost-efficient, growing solution as Vietnam, foreign entrepreneurs can choose their optimal business setup jurisdiction in Asia!


Resources


Tags: Government | Asia


About the Author


Healy Consultants Group PLC

Since 2003, Healy Consultants assists international Clients with company incorporation services worldwide. Our services include: company registration, opening of corporate bank account, accounting and tax services, legal services, jurisdiction comparisons...more.

To inquire more information about global business set up; call us on +65 6735 0120 or email us at email@healyconsultants.com

 

 

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