Setting up a new business can be very expensive, especially when you factor in the cost of commercial premises rental. Luckily, some governments in Asia Pacific are so set on promoting new businesses and entrepreneurship that they are offering schemes and subsidies to help make setting up your commercial and office space rental more affordable. Here are some of the top schemes and programs throughout the region, as well as what you can do to save money if you find your business is not eligible.
Incu-Tech, Hong Kong Hong Kong’s Technology Business Incubation Programme (Incu-Tech/Incu-Bio Programme), run by the Hong Kong Science and Technology Parks Corporation provides assistance to those looking to start up a business within the technology sector. As part of the three or four year incubation programme, companies will receive financial aid of $639K – $815K (HKD) as well as full access to offices or laboratories for up to 12 months rent free. If your company is eligible, this could be a great option for getting through the first year without paying out for commercial space.
MSC, Malaysia The MSC Malaysia Bill of Guarantees gives a wealth of benefits to new companies, providing they are approved for MSC Malaysia Status, including freedom of ownership, the right to source capital and borrow funds, competitive communication rates and more. Once accepted as an MSC Malaysia company, a start-up will be able to set up itself within the designated premises within one of MSC’s Cybercities or Cybercenters.
PEZA, Philippines PEZA is the Philippine Economic Zone Authority – a government agency dedicated to the establishment of economic zones for foreign investments. Features of the PEZA program (after a business has been granted the PEZA Certificate of Registration) include exemption from numerous government and local fees, exemption from customs tax payments, zero percent VAT, tax-free imports and income tax breaks of varying lengths depending on your agreement. With the money you save through these incentives, you can find setting up your business easier and more affordable.
PIC, Singapore The Productivity and Innovation Credit Scheme (PIC) in Singapore is essentially a large saving on tax when a business invests in any of six outlined qualifying activities. Those who do so will receive tax savings of up to 400% on up to $400,000 (SGD) – or a non-taxable cash payout. Again, this can help businesses afford what they need to bring their ideas to life.
The Alternatives If you are in a location that does not provide any government schemes or office rental subsidies for businesses, or you simply do not qualify for what’s available, you’ll need to look at an alternative way to save money while setting up the premises for your business.
If you can afford the monthly lease, a serviced office is an excellent way to manage your office costs, as you’ll only have one outgoing payment each month. Included will be the office space, all connectivity charges and use of office equipment, allowing you to manage your finances in a simpler manner.
If you’re interested in setting up your business in a serviced office or a flexible workspace in any city in Asia, get in touch with Asia Serviced Offices today!