Company Formation Comparison Hong Kong vs Singapore
Updated on Sunday 24th September 2017
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Both Hong Kong and Singapore are top cities for investments in Asia. The two jurisdictions have many similarities, including a business-friendly regime, good infrastructure and facilities and are strategically positioned in the Asia-Pacific region.
When comparing the benefits for investors and the company formation procedures in Hong Kong and Singapore, investors need to look rather at the particularities of their own business and how the many advantages of the two jurisdictions would best suit their specific needs.
Investors who want to open a Hong Kong company can benefit from the help and assistance provided by a team of company formation experts.
We invite you to watch the following video on how Hong Kong compares to Singapore in terms of company formation:
Open a company in Hong Kong
Company registration in Hong Kong is straightforward and can be completed in just a few days. Both jurisdictions are very open towards foreign investments and have a free trade policy. Employees in Hong Kong can be foreigners and company directors can have any nationality, as opposed to Singapore where in some cases they are required to be residents.
Compared to Singapore, Hong Kong does not impose withholding taxes. There is also no goods or services tax. Hong Kong has signed a large number of double tax treaties.
Both Hong Kong and Singapore have a low corporate tax rate and low requirements for the minimum issued capital for some types of companies.
The workforce quality is high in both jurisdictions, however, Hong Kong has access to a growing and an increasingly more talented pool of workers from Mainland China. The proximity to the Mainland is an important advantage to some investors.
Open a company in Singapore
Singapore does impose withholding taxes in some cases, unlike Hong Kong. Also, certain types of remittances are taxed here. Singapore also concluded many double tax treaties, but Hong Kong has better provisions for business in some of these agreements.
Both Hong Kong and Singapore have a competitive and free economy. The quality of life is another important factor where the two cities position themselves very good. In terms of the number of expats, Singapore a slightly larger number.
In terms of political stability, Singapore tops Hong Kong by a few points. Both jurisdictions score well in policymaking transparency.
Hong Kong and Singapore have many similarities, however, the differences in taxation schemes, incentives or signed double tax treaties can be the ones that will determine investors to choose one jurisdiction over the other.
Call us now at + 852 8191 3385 to set up an appointment with our company formation experts in Hong Kong. As a DM Advisory client, you will benefit from the joint expertise of local lawyers and consultants for opening an offshore company in Hong Kong.
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