Which Country is Best for Startups in Asia?

Asia isn’t just rising – it’s redefining where and how global business gets done.

With world-beating adoption, cost-effective talent and rapidly growing consumer markets, the region offers serious upside for entrepreneurs looking to start, build or scale.

But with opportunity comes complexity. In fact, the region has so many options it can be daunting to foreigners.

Asia isn’t some monolith. Think of it more like a mosaic of legal systems, tax regimes, regulatory hurdles and wildly different costs of doing business.

Unfortunately, this particular mosaic can also sometimes resemble a maze and choosing where to base your startup or structure your operations is no small task.

The best choice depends on what you’re trying to do:

• Secure access to capital
• Reach regional markets
• Recruit talent
• Find a low-tax jurisdiction that aligns with your strategic needs.

Some countries are better suited to bootstrap ventures, while others are focused on VC-backed tech startups. But only a few nations offer business infrastructure tax efficiency, a viable path to residency or even citizenship, affording founders and investors an edge that goes far beyond the bottom line.

For experienced entrepreneurs, high-net-worth individuals (HNWIs) and international business owners, the question isn’t just about where it’s possible to start a business – it’s about finding where where you’ll be treated best.

What Makes a Country a Good Place for Startups?

The foremost answer to that question is access to skilled talent.

It’s not just about focusing on headcount, but securing the right blend of expertise – whether tech specialists, marketers or finance professionals – at a cost structure that makes sense. 

Equally valuable is the funding ecosystem. A truly fertile startup country should have easy access to capital across the spectrum. 

The ideal country should also have either a readily accessible domestic market or serve as an access point to new global territories. The strongest contenders often have a strategic combination of both.

Lastly, but just as vital, is a favourable tax regime. Fair corporate tax rates, attractive personal income tax structures and favourable treatment of capital gains are huge draws.

Which Country is Best for Startups in Asia?

Asia is filled with good investment and startup options. 

However, for the global founder, the astute investor or the high-net-worth individual prioritising stability, Singapore consistently ranks as one of the best places. 

Singapore’s talent pool is vast, and while more expensive than others, is adept in what modern businesses need to thrive. The funding ecosystem helps founders access capital across the full lifecycle.

Furthermore, state-backed initiatives, particularly via Startup SG, provide catalytic, often non-dilutive funding – a level of state alignment rarely found elsewhere.

Singapore’s true competitive edge lies in its function as a high-trust connection with Southeast Asia and the broader Indo-Pacific.

The regulatory system is very supportive. Expect quick incorporation, no bureaucratic friction, ironclad intellectual property protection and an unwavering rule of law. 

And then there’s Singapore’s tax structure, which is competitive. Expect a 17% headline corporate tax rate often reducible through incentives, a progressive personal income tax framework peaking at 24% and zero capital gains tax.

On top of this, Singapore actively welcomes entrepreneurs to set up shop and gain residency with the potential for eventual citizenship. 

Alongside the capital-intensive Global Investor Programme (GIP), which requires a multi-million dollar investment, there is one pathway to permanent residence, known as the EntrePass. 

This visa has been created for serial entrepreneurs, high-calibre innovators and experienced investors. 

Qualification for the EntrePass hinges on your track record, industry network, secured funding or the inherent innovation within your business model. 

Are there downsides? Certainly. The cost of doing business and living is relatively high. 

However, experienced operators often view this as a premium for having access to the best place for startups to thrive in Asia.

Top Contenders for Best Startup Countries in Asia

No assessment would be complete without considering other major hubs: Hong Kong and South Korea.

Hong Kong

For decades, Hong Kong has been a renowned hub for international finance and trade, acting as a gateway to Mainland China. 

Aside from this, its other strengths are considerable. The city-state has a deep pool of talent in finance, logistics and professional services, and it is complemented by a highly international workforce. 

Its funding ecosystem is healthy, benefiting from its status as a global financial centre and its regulatory environment is built on a foundation of ease of doing business, underpinned by a simple and attractive tax system. 

The territorial source principle means offshore profits are generally not taxed. For onshore profits, a two-tier corporate tax regime applies and the progressive tax rate system is low, capped at 17%. 

However, challenges exist. 

Operating and living costs are high, rivalling or exceeding Singapore’s. While tech talent is growing, the pool might be less deep compared to other specialised hubs. 

South Korea

South Korea presents a different yet compelling proposition, particularly for tech-focused ventures. 

Its primary asset is arguably its talent. Expect a highly educated populace with exceptional strength in deep tech, engineering and R&D. 

The funding ecosystem is driven by domestic venture capitalists (VC), government enthusiasm for startups and increasing corporate VC activity.

On top of that, the country has a technologically mature domestic market of over 50 million consumers. 

There, specific visa pathways for startup founders exist, such as the D-8 (Corporate Investment) or D-10-2 (Startup) visas.

One downside is that the tax landscape is less favourable compared to the city-states. 

Corporate taxes are progressive, ranging from 9% to 24% and a progressive personal income tax rate ultimately climbs to a top rate of 45%. 

Operating costs are generally more moderate than in Hong Kong or Singapore, but not minor. 

Up-and-Coming Startup Countries in Asia 

Let’s briefly look at two emerging countries for startups in Asia. 

Malaysia

Malaysia’s value proposition really has to do with cost. 

Operating expenses are much lower than in the premier city-states, yet it rivals them in terms of what it has to offer, especially within the capital city, Kuala Lumpur, and Penang. 

Like Singapore, the talent pool is diverse, multilingual and very skilled in digital disciplines. 

While its funding ecosystem is less mature than Singapore’s, it is growing with government funds (like Cradle) and increasing VC interest. 

Malaysia also has good market access into the broader ASEAN region. 

It also has specific pathways for foreign entrepreneurs, including options within the Labuan International Business and Financial Centre, which offer very low taxes on specific offshore structures. 

Bureaucracy can be a factor, but for cost-conscious startups targeting Southeast Asia, Malaysia warrants serious consideration.

Thailand

Thailand sits in the middle of Southeast Asia, giving it direct access to the entire regional market. 

It also has a relatively strong domestic market with a population of over 70 million. 

Its costs are generally low, and it is positioned at the same level as Malaysia. Bangkok has an emerging tech startup scene and decent infrastructure. The government supports foreign investors and startups through its Board of Investment (BOI) incentives that give corporate tax breaks. 

Furthermore, Thailand makes entry and longer stays easy through several visa options that fit entrepreneurs. 

Alongside traditional business and investment visas, notable schemes include the Smart Visa, which targets startup founders, tech talent and investors in key sectors with enhanced privileges.

It also has the newer Long-Term Resident (LTR) visa, applicable to relevant high-net-worth individuals and skilled professionals. 

While the funding environment is developing and bureaucracy persists, Thailand has an attractive mix of startup opportunities. 

Best Country for Startups in Asia: FAQs

Choose the Best Country for Your Startup

Singapore’s meticulous efficiency and tax advantages make a compelling case for founders with global ambitions.

Yet, the pull of Hong Kong’s financial nexus, South Korea’s tech depth or the emerging potential of Malaysia and Thailand should not be underestimated.

Ultimately, the ‘best’ jurisdiction isn’t defined by rankings or reputation – it’s shaped by your operational needs, market focus, risk appetite and long-term wealth strategy.

Getting it right means looking beyond outside observations and broad comparisons. It requires a granular analysis that’s rooted in your personal needs and aligns each jurisdiction’s potential with your long-term wealth strategy.

Finding the best startup location in Asia isn’t just about finding somewhere to register your company. It’s about planting your flag where your ambitions will be treated best.

Ready to make the leap from casual research to focused results? Work with us to start designing your bespoke global strategy – get in touch to take the first step.