Selecting an offshore jurisdiction for your company operation can be exciting and fun, yet perilous because of the business operating dynamics. One of the most outstanding regions is Asia-Pacific (APAC) because of its large market and rapidly growing economy. In this post, we dig deeper and highlight the most important things that you need to know when expanding your company in APAC.
A Brief Economic Outlook of APAC
Before you can make up your mind to expand your business to Asia, it is important to check what the numbers have to say about it. The rapid growth being experienced in APAC can be traced back to about sixty years following the respective administration’s shift to opening their economies to international trade. In 2020, the International Monetary Fund estimated the total APAC GDP at $ 31 trillion, accounting for about 37% of the world GDP. By 2030, APAC’s GDP is expected to contribute 60% of the global GDP. Here are other important facts about APAC:
- The APAC region comprises 21 members that host about 38% of the global population.
- In 2018, the APAC’S economies’ FDI in the US reached $1.2 trillion, a 7.5% growth from the previous year.
- Most US direct foreign investment into the APAC countries is directed to the non-banking areas, such as manufacturing and insurance.
- APAC operates as a cooperative, trade forum, and multilateral economic block where members participate on the basis of open dialogue. Irrespective of the country’s economy, every member of APAC has an equal say and decisions are made through consensus.
As you can see, APAC provides one large umbrella for the member states, but each of them is allowed to implement its own strategies and standards. This is why you should dig deeper into the targeted country’s company laws to determine the best jurisdiction for company expansion. For example, the process of registering a company in Hong Kong is fundamentally different from that of China.
What are the Benefits of Expanding Your Business to APAC?
The most notable advantage of going offshore to APAC is the large market. In addition to the more than 4 billion people in the entire APAC area, your business will also be able to access the US, South America, Africa and Europe. This might be all that you might need to grow your enterprise into a multinational. Other benefits of expanding to APAC include:
- Supportive administrations.
- Abundance of business growth opportunities.
- Well-developed infrastructure.
- Impressive hub for startups
What You Need for Business Expansion in APAC
To expand your business to APAC, with a service provider like Hawksford, it is prudent to ensure you develop the right strategy. For example, you might want to form a partnership with a local company and utilize the partner’s supply chain network for rapid growth. Here are other important things that you need to do:
- Carry comprehensive market research to determine the size of the targeted market.
- Understand the laws that guide company establishment and growth in the selected country.
- Ensure to have ample capital for the company operations. The rule of thumb is to have ample resources to cater to all expenses of the company for about one year or until it becomes self-sustaining.
- Only employ a highly qualified and enthusiastic team of employees in your company.
- Set clear goals and objectives for the company after carting market research. Ensure the targets are realistic based on the nature of the market, competition, and emerging customer needs.
This guide has demonstrated that APAC is one of the high-potential jurisdictions that you can count on for business expansion. So, all you need is to move there and employ an appropriate strategy. To do this, you have to first register your company in the selected country in line with local laws.
This can be challenging, but there is a way out – working with an agency of experts. These professionals will hold your hand not just during company registration but also in drawing the best strategies for growth.