China is currently one of the largest economies in the world and opening a company here is very attractive for foreign investors. However, when compared to opening companies in other countries in Asia, such as Hong Kong or Singapore, a foreign enterpriser might be surprised to find out that even if much smaller, Singapore offers much more incentives and greater expansion possibilities.
Below you will find an useful comparison between the company registration procedures in Singapore and in China. You should also keep in mind that our company incorporation agents can help you open a company in Singapore.
Starting a business in China
The first thing a foreign investor must know is the China imposes quite a few restrictions on overseas enterprisers seeking to open companies in certain industries like mining, education and healthcare which implies a thorough investigation of the business environment here. Singapore does not impose such restrictions, which make the city-state a much friendlier country to do business in.
The company registration process in China will unfold as it follows:
- – make a reservation for the company name;
- – open a bank account and deposit the capital;
- – obtain a verification report for the capital deposited;
- – obtain the business certificate.
This is the first phase of the company formation process in China and after it is completed, the business owner must also apply for a company seal. Then an organization code certificate must be obtained and only after this the Chinese company’s corporate account can be opened. All these procedures are subject to various fees.
Open a company in Singapore
Compared with the business registration procedure in China, the Singapore company formation process is much simpler, as it involves the following steps:
- – reserving the company name;
- – filing the incorporation documents, which can be prepared by our company registration specialists;
- – obtaining the tax number;
- – applying for the corporate seal;
- – registering for social security purposes.
Needless to say that in Singapore the company registration procedures takes fewer days and is less expensive.
For full information on the costs involved when opening a company in Singapore, please feel free to contact us.