The benefits of expanding a business to the Asian market are easy to see, beginning with the fact that Asia is home to some of the greatest and most populated nations in the world. This alone makes it one of the most superior markets on a global level.
Those who wish to enter the Asian market can set up a business or expand their operations through subsidiaries or branch offices. However, there is another option available for those who want to relocate their business to any of the Asian nations that offer ease and convenience at a very affordable cost.
Planning Ahead: What You Need to do Before Expanding into Asia
Prior to expanding a business to the Asian market, a business should make two important decisions, including deciding which country to expand to and which type of business form is the most fitting for their type of business.
In pondering these two important decisions when planning on expanding a business to the Asian market, you should be aware that the Asian market is unitary, which means that businesses will find similar opportunities no matter which nation they choose. This may present some challenges in trying to decide between two nations. Good indicators you can examine when trying to make this decision are the size of the market you wish to address and any legislation to the industry you are in.
With regard to size, China and Japan are the largest markets in Asia. China is the largest economy in the world and Japan is known for the excellent quality of the population’s life, which is a good indicator of solid purchasing power.
China and Japan are not the only prosperous nations in Asia, though. There are several smaller economies which make up for their smaller size with more laid back legislation with regard to foreign investments, which permits foreign companies to more easily succeed. Two of these are Singapore and Hong Kong.
Don’t Overlook Market Research
Other factors to consider when expanding a business to the Asian market are market research and feasibility studies. These two factors will help you to understand any gaps that could be filled and if there is a need for your particular goods and services.
When having completed the above-named steps, handling the legal forms and necessary paperwork are the next logical step to pursue in expanding a business to the Asian market. From a legal standpoint, expanding a business to the Asian market can be done through a subsidiary company or through a branch office.
There are differences between these two options that should be carefully considered, as they will impact the parent company and the entity operating in the Asian market.
Expanding a business through a branch office translates into a legal entity that is completely dependent on the parent company. The registration and the administration are inexpensive. A branch office is also advantageous from a taxation point of view, since the parent company is able to offset some of the taxes that are paid in the Asian country against the taxes that are paid in the home country.
For some types of businesses, expanding through the use of a subsidiary is the better option. The company may still have to follow the regulations of the parent company, but will be registered as an independent company within the country where it will operate. In simple terms, this means that the company has full independence to operate in the Asian market and operate under the same beneficial taxation system that is applicable to local companies.
Enhance Your Communications with Call Forwarding
The Asian market is one of the most competitive markets worldwide, which is why it attracts so many foreign investors who are looking to establish their presence in these nations. Once you have decided which nation to operate in and as you establish contacts in that nation through the planning processes, communication within the nation will likely become an essential step in the process. Purchasing a virtual phone number to easily communicate with these new contacts and setting up international call forwarding is a logical and advantageous decision to keep the lines of communication open with this new market.
For decades, United World Telecom has specialized in offering virtual phone numbers to nations in Asia and all over the globe. One of the many features United World Telecom offers to work in partnership with virtual phone numbers is call forwarding.
When expanding a business to the Asian market or any other foreign market, the challenges of keeping lines of communication open become especially prevalent. Therefore, utilizing virtual phone numbers with international call forwarding is the perfect way to bridge that gap and ensure effective communication for all parties involved.