Top jurisdictions for business startup in Asia
As every single result is based on background and experience which created it, then before beginning to describe most popular and effective jurisdictions for business startup in Asia it can be useful to have a brief look at already established startup companies in this geographical area.
Asia has a leading role in tech investment growth, bucking gloomy numbers for other parts of the globe with economic powerhouses located in China and India. Most popular business fields or business trends in this region today are: ecommerce, marketplaces, financial technologies, transportation, bio technologies, data processing technologies, Internet infrastructure and enterprise business solution field. These sectors captured about 30% of VC investments few years ago.
Asian market leaders
Each of these fields has its leader in terms of companies’ performance and funding. For example, the ecommerce site Lazada has been evaluated 1.3 billion US dollars with total funding of 686 million US dollars. Ride-hailing taxi application Grab has received funding of 680 million US dollars. There are more of Asian startups which have really great potential: Zalora (ecommerce field, fashion industry); PropertyGuru (real estate business); Elevenia (ecommerce field, marketplaces and platforms); M-DAQ (fintech field); Tokopedia (ecommerce field, consumer-to-consumer marketplace); Qoo10 (ecommerce field, business-to-consumer marketplace); Capillary technologies (cloud-based customer engagement platform for retailers); Aslan Pharmaceuticals (biotech company); IcarsClub (peer-to-peer car rental platform) and other companies. Most of these startups are founded in South-East Asia in such countries as Singapore, Malaysia, India, China, UAE and Indonesia. These can be considered as top 6 jurisdictions for business startup in Asia.
This country has one of the best startup ecosystems in the Asia Pacifics. About three and a half startups are operating there today. It is a well-known business center where headquarters of Uber, Facebook and Google are located. Therefore, the main areas of development include ecommerce, social media and gaming. It is a perfect place for ecommerce development as 9/10 of its citizens has access to a smartphone. Merely half of potential Singapore’s startup customers are living abroad.
This jurisdiction is rather collaborative when comparing it to other countries. There is also a huge investor flow in the country that is entering the market. For example, Jakarta collects investors all over the world who focus on ecommerce, travel and lifestyle.
The country has special programs for startups since 2013 which support them and help entrepreneurs by equipping them with skills, network and the necessary knowledge. These programs are the largest startup accelerators in this region. It is also perfectly suited for foreign talents development and promotion. Therefore, Malaysia has a really supportive government. By the way, living costs in Malaysia are much cheaper than in Singapore. One more advantage is that the country has a good test market which is a little bit larger than Singapore market.
Beijing is one of the best startup cities in Asia together with Hong Kong which has been seeing growth in startups worldwide across various industries such as fintech, hardware and in e-commerce. The second has about 2 thousand small and large scale startups. China also has a tax relief program for startups. The annual tax deductions are around 1,500 million dollars US. They are usually given to businesses established by previously unemployed workers and recent college graduates. At the moment the country runs about 1,500 incubators created by the Ministry of Science and Technology. It is done within the framework of 27-year-old Torch Programme, providing policy, as well as consulting and finance services for high technology companies.
India has about 5 thousand operating startups established in cities like Bangalore, Delhi, Mumbai and others. New projects are being actively funded, consolidated, growing financially and evolving in technical sense. India is making a revolution in this business field which is basically changing how the markets are operating today. There are some estimates the Internet and Mobile Association of India showing that in 2017 India has 500 million global net users. This place also has lots of high quality talents, higher number of investors ready to invest in potentially successful projects, rather cheap real estate prices, support of experienced professionals and a supportive government.