How to Start a Company in Southeast Asia: A Step-by-Step Guide for Foreign Entrepreneurs

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Southeast Asia offers one of the most promising growth regions for foreign entrepreneurs, with its vibrant economies and expanding middle class. Whether you’re targeting Indonesia, Vietnam, or the Philippines, understanding the legal landscape and setup process is key to long-term success.
1. Choose Your Target Market: Indonesia, Vietnam, or the Philippines
Each country presents unique advantages:
- Indonesia: World’s 4th most populous country, with booming tech and e-commerce sectors.
- Vietnam: Attractive manufacturing hub with competitive labor costs.
- Philippines: English-speaking workforce and strong BPO industry.
2. Understand Business Structures
Foreign investors can typically choose from:
- Representative Office
- Foreign-Owned Limited Liability Company
- Joint Venture with a Local Partner
Be sure to review:
- Ownership limits
- Capital requirements
- Business license needs
3. The Company Registration Process
Here’s a simplified overview:
- Reserve Your Company Name
- Prepare Legal Documents (Articles of Association, Shareholder IDs)
- Submit to Government Agency (e.g., BKPM in Indonesia)
- Obtain Tax ID and Business Licenses
- Open a Local Bank Account
4. Compliance & Labor Laws
- File taxes and reports on time
- Adhere to labor laws, including minimum wage and termination policies
- Set up payroll, insurance, and benefits for local employees
5. How Business Hub Asia Can Help
Our experts simplify the process by:
- Handling company formation end-to-end
- Ensuring legal compliance
- Managing payroll, taxes, and post-setup operations
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Dana Vincent
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