INDIA - fast and incredible

It is a good point to listed to your partners in India. They talk fast and presume many points. Maybe because India is convenient, maybe because once u get some status u keep it. And still they talking to each other will cause misunderstandings. Listen, try hard and than, after they stop summarise. For sure all of us care the business to happen.

ASIA - last resource before the retail portfolio becomes NPL

Retail portfolios are made of loans given to physical people with maturity of few hours (Burma, Thailand - loans to sell vegetables on a market), few days (payday loans), few weeks (loans to next salary), few months (consumer financing, few years (bank loans and credit cards) up to 10s of years (mortgages).

Every loan could be overdue by the payment and it does not need to mean the debtor is unavailable to pay or unwilling to pay back.

The most risky part of the loan is the first months, as collateral value is lower then loan, as the debt is new, as it is not sure if the debtor did not cheat the issuer and as the financial institution did not earn any interest or got at least partially back the installament.

Loans in Asia are growing, as economies settle down and the free resources are available even to middle and low class.

They are also overheating by a non-performing loans, as the economy is changing and the stability is only kept by growth instead of strengthening the system.

Finance education between CEOs in Asia

Opening a company in Asia may have additional challenge for every investor. You will need, initially or in time, educate your CEOs in financial matters. Reason for being so is not to loose their trust. Usually every CEO you employ in beginning are also a small shareholder of the entity and it makes friends to agree on the basic principle or decision making upfront. If yoi decide to do so in time discussion will be longer and very deep. And in few cases you might loose motivation of your people and this is what you just dont want to happen.

I propose you to read few Articles of association or few Shareholders agreements to get in better knowledge. And also respect local culture and better ask before you become convinced. F.e. stockholders equal shareholders in Philippines and you might misinterpret it once seing it as a foreigner.

Thailand - challenge by establishment

To establish company in Thailand for foreign investor is a challenge due to ownership structure. Investors prefer fully foreign owned entities or at least an entity they can control. The idea behind is the providing of the knowledge and funding for the business and risking the outcome of the investment.

It is always important to read what is in By-laws, Articles of association, Shareholders agreement and other documents your lawyer will offer you to sign. You may easily loose control over your investment and even to be punished for protecting your interest. To ensure even deeper challenge on a market Thai courts are known for being too slow and protecting local companies and citizens. Therefore an arbitrage option is always good to have inside.

PHILIPPINES - company opening

Opening of the company in the Philippines is rather straight forward, general rules are:

A) if you wish foreign owned company u will need 200.000 USD equity (with exeption of technology development company 100.000 USD and financial enterprise - that varies by regulation)

B) Articles of incorporation are usually pretty straight forward. Issue is the enforcement of such articles, as it is by Philippino courts and it can take years. Therefore it is adviced ti be enforced by arbitrage.

C) You will need 5 shareholders in the company, majority residing in Philippines/being Philippino

D) You will need 5 directors in a company with majority residing in Philippines / being Philippino

E) You need to read By-laws due to setup of voting and AGM.

F) The process of the establishment can take even 6 weeks and longer

G) you need to select Secretary of the company and Treasurer of the company, independent persons