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Setting up a Treasury Centre in Asia

Updated: Jun 27

Setting up a Treasury Centre in Asia

Establishing a Treasury Centre in Asia can be a strategic move for companies looking to expand in the region. It centralizes treasury operations, leading to increased efficiency, control, and visibility over your finances. Here's a breakdown of key things to consider:

Benefits of a Treasury Centre in Asia:

  • Improved Efficiency and Control: Centralizing treasury functions streamlines processes and reduces duplication of efforts across subsidiaries.

  • Enhanced Visibility: You gain a consolidated view of your regional cash flow and liquidity, enabling better financial planning and decision-making.

  • Risk Management: A centralized treasury allows for better risk mitigation strategies across foreign exchange fluctuations and interest rates.

  • Tax Optimization:  Certain locations offer tax incentives for housing treasury centers.

Choosing a Location:

  • Singapore and Hong Kong: These are the most popular choices due to their:

  • Liberal regulatory environments

  • Favorable tax regimes

  • Deep talent pools

  • Strong financial infrastructure

  • Other Options: Depending on your strategic focus, Malaysia and Thailand might be viable alternatives, but consider potential limitations on foreign exchange controls.

Additional factors to consider:

  • Your company's specific needs and growth plans: Align the treasury center's location with your target markets.

  • Technology Infrastructure: Invest in a robust treasury management system (TMS) to support centralized operations.

  • Banking Partnerships: Partner with a bank that has a strong regional presence and can provide the necessary financial products and services.

Getting Started:

  • Consult with professional service firms like tax advisors and lawyers to navigate regulatory requirements and identify the optimal location.

  • Partner with a bank that specializes in supporting regional treasury centers. They can provide guidance on setting up accounts, cash management solutions, and other financial services.

By carefully considering these factors, you can establish a successful Treasury Centre in Asia that fuels your regional growth and financial performance.

How Bestar can Help

Setting up a Treasury Centre in Asia

Bestar play a crucial role in setting up and running a successful Treasury Centre in Asia. Here's how we can assist you:

  • Structuring the Treasury Centre: We advise on the most tax-efficient structure for your treasury center, considering factors like legal entity type and location-specific tax incentives.

  • Tax Optimization Strategies: We help you navigate complex tax regulations in Asia, ensuring compliance while minimizing your overall tax burden.

  • Transfer Pricing: We guide you on establishing arm's length transfer pricing policies for transactions between your treasury center and subsidiaries.

  • Tax Planning and Reporting:  We assist with tax planning for future growth and ensure timely and accurate tax filings for the treasury center.

  • Regulatory Compliance:  Bestar ensures your treasury center adheres to all relevant regulations in your chosen jurisdiction. This includes banking regulations, anti-money laundering (AML) laws, and foreign exchange controls.

  • Contract Drafting and Negotiation: We help draft and negotiate contracts with banks, vendors, and other service providers involved in your treasury center operations.

  • Corporate Governance:  Bestar advises on establishing sound corporate governance practices for the treasury center, including board structures and internal controls.

  • Licensing and Permits: We assist in obtaining any necessary licenses and permits required for operating your treasury center.

By working with Bestar, you gain invaluable expertise to navigate the legal and tax complexities of establishing a Treasury Centre in Asia. This ensures you operate efficiently, compliantly, and take full advantage of the available tax benefits.


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