Asia is the greatest continent by both area and population which means counties here have a large purchase power and a high production capacity. Foreign investors from countries outside Asia can find business opportunities in both small and large Asian countries. Among the small states which offer important investment possibilities are Singapore, Malaysia, South Korea and also North Korea.
In order to assess which country is better, we have prepared a brief comparison between the company formation procedures in Singapore and North Korea. Foreign investors interested in starting a business in the city-state, can rely on our company formation specialists in Singapore.
While Singapore is one of the most open countries in terms of welcoming foreign investors through visa programs and no restrictions to open companies in major industries, the same cannot be said about North Korea. Even if North Korea allows foreign investments, these are subject to many restrictions. Also, in order to open a company in North Korea, a foreign entrepreneur will need a local partner. Foreign-owned companies are only allowed in free economic zones in North Korea. This is not applicable to foreign enterprisers who want to do business in Singapore. One only need to appoint a local representative to carry out the Singapore company formation process.
North Korea’s largest city is Pyongyang, the capital, which is also the most developed city from an economic point of view. Singapore, on the other hand, has numerous residential areas, such as Woodlands which connects the city-state to Malaysia, Hougang which is the largest town and where the largest shopping centers are located and Jurong which one of the most important free zones of the country.
The company registration procedure in Singapore is very different than the one in North Korea. First of all, foreign investors or companies enter into equity or contractual joint ventures with local businesses in North Korea, compared to Singapore where full foreign ownership is allowed. Secondly, foreign companies operating in North Korean free economic zones can do so only in a few sectors such as the electronics, food processing and construction industries. The company registration documents or the joint venture contract must be filed with the Trade Register in North Korea.
In order to open a Singapore company, one must only have the documents of incorporation prepared and filed with ACRA, followed by applying for tax and GST numbers and the business license.
For full information on how to establish a company in the city-state, please contact our Singapore company formation consultants.