Singapore and Hong Kong are two of the most spectacular countries in the world when it comes to infrastructure and real estate development. Singapore and Hong Kong have another thing in common: they are both two of the most liberal economies in the world. The last fact is what makes foreign investors consider very well their options when deciding to open a company. So what will it be: Singapore or Hong Kong? Below you will find a brief comparison between the company formation procedures in Singapore and Hong Kong.
Our Singapore company formation specialists can assist foreign investors seeking to open a company in the city-state.
You can also watch our video on the company formation comparison between Singapore and Hong Kong:
How to open a company in Singapore
Even if Singapore ranks the same as Hong Kong in terms of economy, the World Bank has chosen the city-state to be the easiest country to do business in several times in row. So, when deciding to starta Singapore company, one should really take this into consideration. According to the same World Bank, the company registration process in Singapore consists in three steps:
- – registering with the Accounting and Corporate Regulatory Authority;
- – obtaining the company seal;
- – registering with the Employee Compensation Insurance Agency.
Apart from that, the foreign investor must also apply for the necessary business licenses required by certain authorities in relation to the activities to be carried.
Opening a company in Hong Kong
If the company incorporation procedure takes three steps to be completed in Singapore, the company formation process in Hong Kong only takes two steps:
- – registering with the Companies Register;
- – registering for the Employee’s Compensation Insurance and Mandatory Provident Fund with the Ministry of Labor.
The company formation procedures would be completed in one day, no matter if one decides to open a company in Singapore or in Hong Kong.
What to choose: Singapore or Hong Kong?
Considering the company registration requirements are pretty much the same in Singapore and Hong Kong, it is all reduced to the costs related to start a business and the advantages for foreign investors. When it comes to the costs, it is definitely cheaper to open a company in Singapore, because one must only pay the company incorporation fee and the company seal, while in Hong Kong the costs imply the company name reservation, the company registration fee and another levy with the Companies Register.
When it comes to legislation on foreign investments, Singapore overtakes Hong Kong mainly because it requires no share capital to open a company, whereas Hong Kong requires a minimum amount of 10,000 HKD (approximately 1,800 SGD) for the registration of a limited liability company. Singapore also offers numerous tax incentives to foreign investors.
For complete information on the requirements for company formation in Singapore, do not hesitate to contact our local consultants.