Lately, many manufacturing owners have been asking: “We want to export our products to Southeast Asia. Should we register a separate trading company, or should we work with someone else?”
Our advice is straightforward: Do the math, and the answer will come to you.
Before You Rush to Register a Company, Let’s Run the Numbers
1. An extra company means an extra ¥30K-80K in annual costs
● Registration, bookkeeping, bank maintenance: ¥10K-20K/year
● Hiring a document clerk or coordinator: ¥50K-60K/year
● Total: ¥70K-80K gone before you even make your first sale. For a small factory with a dozen employees, that’s a year’s salary for an experienced worker.
2. Is hiring really worth it ?
Some might say: “Then I’ll just hire an experienced export manager.”
Let’s be real: A good export manager starts at ¥150K+/year, and they’re hard to find and even harder to keep. If they leave after two months, your business grinds to a halt, and you’re left cleaning up the mess. When your export volume is still small, the cost of building a team is simply too high.
3. Tax refunds are the same, but the process is more complicated
● Factory direct export: You qualify for the “exemption, credit, refund” policy. You produce and sell – the tax refund is straightforward.
● Trading company export: You have to “sell” your goods to your own trading company first – contracts, invoices, fund transfers – it’s an extra layer.
● The result: You don’t get a penny more in tax refunds, but your process becomes twice as complicated. Plus, you risk catching the tax bureau’s attention over internal transfer pricing.
4. Southeast Asian customers value speed
Customers want to visit the factory, negotiate prices, and confirm delivery dates. A factory owner can make decisions on the spot. Add extra layers, and you’ll be too slow – and you might just lose the order.
So What’s the Right Move? Play It in 3 Stages
Stage 1: Startup Phase (Export < ¥5 Million) – Borrow a Boat to Go to Sea
● Strategy: Factory registration + partner with a professional export company
● How to do it:
1. Register your factory: Spend around ¥1,000 to get your import/export license.
2. Outsource the rest: Hand over customs declaration, booking shipments, forex settlement, and tax refunds to a professional foreign trade or logistics company (like us).
● Why it works: You stay compliant (exporting under your own factory name) without the headache of hiring or setting up a new company. You pay per shipment – low cost, high flexibility：
Stage 2: Growth Phase (¥5M – ¥10 Million) – Build an In-House Export Team
Once your export business is stable, hire 1-2 people to work directly within your factory. They can handle customer communication and order follow-up. Costs are controllable, efficiency is higher – and it’s still way more cost-effective than registering a separate company.
Stage 3: Maturity Phase (¥10 Million+) – Consider a Separate Trading Company
If your export volume is substantial enough that you need to integrate third-party products, build an overseas brand, or shield your factory from export-related risks – now is the time to register an independent trading company. At this stage, you can afford the team and absorb the risks, so the structure actually makes sense.
A Word from the Heart:
Don’t sacrifice substance for appearances.
When your business is small, “borrowing a boat” is the smart move – let the pros handle the pros’ work. It saves money and headaches.
When your business grows, then you can “build your own boat” – assemble your team, set up your company, and take full control.
Get your business moving first. Making money is what really matters.
Key Reminders for Exporting to Southeast Asia:
● Tariffs & Rules of Origin: Leverage RCEP and apply for a FORM E certificate. Most products can enjoy zero tariffs in Southeast Asian countries – a huge boost to your price competitiveness.
● Logistics & Customs Clearance: Choose a Southeast Asia-dedicated logistics provider. They offer door-to-door clearance and can help you avoid local customs delays (which can be a real headache in some countries).
● Forex & Settlements: Work with professional freight forwarders for forex settlement. Avoid underground banks and keep your funds compliant.
● Product Compliance: Check your target country’s product certification requirements in advance (like SNI in Indonesia, SIRIM in Malaysia, TISI in Thailand). When you export directly, your factory is the certification holder – this actually makes you more credible to overseas buyers.
We specialize in export services + international logistics for manufacturers. We can handle everything – customs declaration, freight forwarding, forex settlement – so you can export to Southeast Asia with low costs and high efficiency, without building an extra export team from scratch.
Post time: Mar-24-2026