Why Expand Your Business to Asia?
Asia is home to some of the most diverse continents in the world, each with their own differing landscapes, cultures and markets. Because of its breadth and diversity, Asia is one of the most sought-after consumer markets for global businesses.
However, this diversity between countries means it can be extremely difficult to decide where to take your business expansion. For instance, in south-east Asia, most countries are home to growing economies. Indonesia, Cambodia, Philippines, Vietnam and Thailand offer up a number of opportunities due to their economic growth. Whereas, in East Asia, countries like Japan and South Korea are already home to well-developed economies and markets.
No matter where you’re expanding your business to in Asia, challenges can arise. There can be a lot to manage when tackling a global expansion to Asia, not to mention the different legislation and tax considerations.
Differing Employment Laws
Employment law differs throughout Asia, so it’s important you work closely with country-specific employment law experts to ensure your business remains compliant and law abiding at all times.
Take for example, differing employment statuses. In Asia, individuals will benefit from different rights depending on their status:
– In Indonesia, there are two types of employment status – definite period employment and indefinite period employment. Definite period employment would cover jobs that will be completed in a set period or are temporary, whereas indefinite would be more permanent employment.
– In Vietnam, you are not classified as an ‘employee’ if you provide services for service fees (for instance consultants or contractors).
– In India, individuals benefit from different rights depending on whether they are classified as workmen, managerial employees, consultants, or contract-labourers.
Differing Tax Rules
Maintaining compliance with differing tax rules across Asia can be a challenge. FMP Global’s experts understand this, which is why FMP Global are here to help. We have the in-country experience you need to make your payroll and HR management easy and compliant.