Singapore vs Hong Kong: Where to open your company in 2024?

Registering your company overseas is a game changer, and choosing the right location to launch your company can make or break your business. 

In 2024, two major choices stand out: Singapore and Hong Kong. Both offer incredible opportunities, but they each come with their own set of advantages.

So, which location should you choose for your business venture? 

In today’s post, we are going to compare Singapore vs Hong Kong in terms of 

• Tax systems and incentives;
• Business-friendly environments;
• Bank account opening and financial services;
• Running and management fee;
• Quality of life for those looking to settle in.

Small note: Singapore is the best option for a foreign entrepreneur, especially start ups and small companies, to register their company. Hong Kong is second because Singapore has a more economically stable and business-friendly environment than Hong Kong.

Want to learn why Singapore is always on top of the minds of entrepreneurs? Let’s dive in.

1. Singapore and Hong Kong: Your 2 havens for start-ups and entrepreneurs

1.1. Singapore

Since the day of its independence, Singapore has been renowned for its stable economy, world-class infrastructure, and business-friendly policies.

With its focus on innovation and strategic location, the Lion-City is a top choice for entrepreneurs to open their company aiming to tap into Southeast Asia’s dynamic markets, in various industries, at every stage of their business level, from startups to corporations.

1.2. Hong Kong

Known for its unparalleled access to mainland China, low tax rates, and minimal regulatory barriers Kong is a compelling choice for various industries, offering unique benefits to different business needs,

The benefits you can get when incorporating a company in Hong Kong are similar to forming a company in Singapore.

So, which location aligns best with your entrepreneurial goals? Let’s dive into the key features that set Singapore and Hong Kong apart.

2. Which location has the best tax incentives?

For the majority of foreign business owners, taxation policy is the main concern when setting up their company overseas. 

Forming a company while minimizing running costs and optimizing taxes should be your strong focus. 

The table below will highlight the key differences between the tax systems of Singapore and Hong Kong. 

When it comes to tax incentives, Hong Kong often has the upper hand. Its low corporate tax rates and lack of VAT are major draws. 

The city’s straightforward tax system, with a maximum corporate tax rate of 16.5%, makes it one of the most tax-efficient places to do business.

While Singapore also offers competitive tax rates and various incentives, Hong Kong's simplicity and lower rates make it the preferred choice for many looking to maximize their profits.

3. Which location has the best business-friendly environment?

For many years, Hong Kong SAR and Singapore have consistently ranked among the top three in the World Bank’s annual Ease of Doing Business ratings.

It shows that, no matter where you choose to register your company, you can easily do your business and barely notice any hardships.

But, to help you decide between these two business hubs, here’s a comparison of company incorporation and compliance requirements in Singapore and Hong Kong.

Company registration requirements

Annual compliance requirements

Based on the company registration requirements and annual compliance, Singapore offers a more structured and supportive environment for businesses. 

The mandatory appointment of a resident director and company secretary ensures a high level of accountability and compliance for you as the business owner.

Hong Kong, while also business-friendly, provides more flexibility with no residency requirement for directors and no minimum share capital, which can be appealing to certain business models.

However, the lack of a mandatory resident director mean less regulatory oversight compared to Singapore.

In this section, Singapore is slightly more favorable due to its supportive framework, and easy governance, which help you focus more on your business, and avoid unwanted disputes.

In this section, Singapore is slightly more favorable due to its supportive framework, and easy governance, which help you focus more on your business, and avoid unwanted disputes.

4. Which location offers accessible financial services and an easy bank account opening process?

One of the crucial tasks after overs company formation is to open a bank account, as it's essential for managing your business’s finances, receiving payments, and conducting daily operations.

However, non-residents will often find this process particularly challenging.  To understand why, we should first look at the banking landscape of these two regions.

Opening a bank account often involves complex regulations and stringent compliance requirements due to strict anti-money laundering (AML) and know-your-customer (KYC) policies.

They must thoroughly vet any potential account holders. This process can be even more rigorous for non-residents, who need to provide extensive documentation, including proof of business activities, detailed financial statements, and personal identification.

However, opening a bank account in Singapore is more favorable, since Singapore’s banking system has become more accommodating to non-residents.

And with the rise of digital banks and digital financial services,  you get access to streamlined online account opening processes with fewer barriers for non-residents.

You can still open a corporate bank account in Hong Kong with traditional banks, however, the chance of success is slim if your nationality is on the “black list” of Hong Kong banks.  

In this regard, a more suitable option is to open a Fintech-based account such as Stripe, Wise, PayPal, Airwallex, PingPong, or an account with certified digital banks in Singapore.

5. Which location offers a more manageable fee for opening and running your company?

When you open a company in Singapore or Hong Kong, there are various running and management fees to consider. 

These fees are essential for maintaining compliance with local regulations and ensuring smooth operations. 

Below is a table outlining the potential required services foreign entrepreneurs need to consider

Notes

Please note that this table only outlines some essential services that most foreign entrepreneurs often have. Some other services include GST registration, license permit, compliance monitoring, etc)

1. Company secretary: Required by law, 
2. Registered office address: This must be a physical address in Singapore, used for official communication.
3. Resident director: Companies must appoint at least one resident director; a nominee director can be hired if needed.
4. Accounting and audit fees: Costs vary depending on the complexity of the company’s financial transactions and whether the company qualifies for audit exemption.
5. Payroll services: If you hire an employee, you need to handle Payroll management, CPF contributions, and employee payslip preparation.
6. Work visa: You can choose to apply for a work visa if you plan to work and reside in Singapore or Hong Kong.

For a foreign business owner	Singapore	Hong Kong
Company registration fee
Nominee director
Company secretary
Registered office address
GST registration (if any)
Corporate bank account opening
Work visa
Annual compliance fee
Accounting services
Audit fee
Payroll services
Tax filing
AR filing

It may seem that to open a company in Singapore, there are more costs involved than to open a company in Hong Kong. 

However, the final estimated costs vary depending on the service provider and the complexity of the business. 

In essence, a one-stop incorporation fee with support for bank account opening in Hong Kong and in Singapore is approximately the same, with the difference ranging from dozens to hundreds of USD. 

You should consult with a professional services firm in Singapore to get a more accurate estimate tailored to your specific business needs.

6. Which location offers a better quality of life for foreigners?

Considering this option is important if you are planning to reside and work in Singapore or Hong Kong with your loved ones. 

When comparing Singapore and Hong Kong for the quality of life for foreigners, each city offers distinct advantages, but Singapore tends to have the edge in several key areas.

7. Conclusion: Where is better to register your company?

As a 10-year experienced corporate service provider who helped thousands of foreign entrepreneurs register their companies in Singapore and Hong Kong, we take into consideration a lot of factors

• Tax policies and incentives;
• Company registration requirements;
• Annual compliance requirement;
• Opening and management fee;
• Quality of life;
• Recent economic and political fluctuations.

After a thorough analysis above and our experience in supporting our clients, we consider Singapore to be the best option for a foreign entrepreneur to register their company.

However, please note that Hong Kong is also a great option if you focus more on the unique advantage of Hong Kong as the gateway to mainland China and ideal tax optimization.

As a foreign entrepreneur and new start-up, you can not go wrong with either location: Singapore and Hong Kong.

8. Faqs about Singapore and Hong Kong company incorporation

With over a decade of experience serving as a trusted partner to more than 750 business owners seeking professional development and breakthroughs in the international market, we are an  expert strategic corporate service provider helping you incorporate and operate successfully in 10 different countries

Our areas of expertise include:

• Strategic Consulting and Company formation in over 10 different countries worldwide such as Singapore, Hong Kong, the U.S., Australia, Thailand, Malaysia, and offshore destinations like BVI, Belize, Seychelles, and more.
• Account opening for personal and corporate bank accounts, as well as setting up PayPal and Stripe gateqays in countries like Singapore, Hong Kong, and the U.S..
• Tax Consulting and Preparation for SFRS IFRS financial reports, corporate income tax returns, VAT/GST (Value Added Tax/Goods and Services Tax), and more.
• Opreation support:
• Registered adress;
• Foreign consular legalization;
• Trademark and patent protection registration in Singapore and the US;
• Employment Pass application in Singapore and Hong Kong;
• Website design, international SIM number provision;
• DUNS registration.

With over 10 years of experience and a team of experts with 5 to 25 years of experience (international standard certifications) as well as direct partnerships with institutions such as OCBC, UOB, DBS, PayPal, and Stripe, we are proud to offer professional, legal, transparent, sustainable services with no hidden costs.

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