Singapore VS Hong Kong Company Formation
- Posted by admin
- 16 September 2013
In economic terms, both Singapore and Hong Kong have achieved great levels of growth over the past few years, although Singapore has steamed ahead in terms of per capita GDP after 1998. Both countries have grown reputations as respected international business hubs, each having world-class infratructure coupled with access to neighboring markets. Is one better than the other for setting up a business? Here’s a brief comparison of Singapore company formation against Hong Kong company formation, and their respective benefits.
1) Singapore requires a minimum of one resident director (i.e. a Singapore Citizen, a Singaporean Permanent Resident, or a person who has been issued an Entrepass, Employment Pass, or Dependent Pass), while Hong Kong has no residency requirements.
2) Both require 100% local or foreign shareholding
3) Both require a company secretary who must ordinarily reside in Singapore and Hong Kong respectively
4) Both require a very low minimum capital requirement of $1 only
5) The corporate tax rates in both are extremely attractive, at 17% for Singapore, and 16.5% for Hong Kong
6) Company setup in both are fairly quick at 5 weeks, including the opening of a corporate bank account
Meanwhile, international business surveys rank Singapore and Hong Kong very closely in terms of being locations to choose for company formation. In the Heritage Foundation’s Index of Economic Freedom, Hong Kong and Singapore are ranked 1st and 2nd respectively. The International Institute for Management Development ranked Hong Kong and Singapore as 1st and 3rd respectively in their World Competitiveness Scoreboard as well. Indeed, both countries are extremely competitive due to their tax breaks and pro-business incentives.