Both Hong Kong and Singapore belongs to the best financial centres in the world alongside the New York and London Stock Exchanges. These countries have the most advance banking system, sound legal systems, and a stable economy. This is the major reasons why most international companies and entrepreneurs would prefer incorporating a business and investing their capital on these countries.
This is not a battle between the two (2) countries to know who is the best, but rather which one is the best that suits your needs.
Take a look at some of the difference on these countries in the aspects of banking, tax, compliance, immigration, and other important facts.
- Both countries are superbly advance in their banking practices as well as their innate capability to deal and process international type of needs in terms of banking itself, considering that most of the biggest companies in the world has a foot in the door on these countries one way of the other.
- Due to their advance banking technologies, opening a bank account in these jurisdictions will be a challenge if you are not accompanied with firms like us to guide you and introduce to you the best bank possible to accommodate your business. On top of that, banks in these countries would require a personally appearance of the controlling persons, directors including the signatories of the company who would want to open an account in any of their banks. If you are interested to know more about this aspect, contact us now.
Although these countries have gathered unnecessary hear says that both has strict policies on bank onboarding, we have however, been able to gather our own direct and actual experience in dealing with banks in both countries and we can guarantee a bank account opening in these jurisdictions with no hassle at all. Sounds perfect? Contact us and we’ll let you know how.
- In Hong Kong, they would normally allow foreign nationals to be designated as directors of the company on top of the requirement of having a HK resident as a Company Secretary to handle its affairs internally and transactions with the HK government.
- Both countries would allow up to 100% foreign ownership, provided that the company meets the requirements attached to this privilege.
- Singapore is very strict in its policy that 100% foreign owned companies should appoint atleast one (1) Singaporean resident as director and also one (1) Singaporean resident company secretary.
- No paid-up capital is required in Hong Kong, while at least $1 is mandatory in Singapore.
Hong Kong has an advantage in this scenario since having a local director acting on behalf of a 100% foreign company can come with great risks if not planned well.
Singapore (17%) and Hong Kong (16.5%) has the lowest tax rates in the APAC region, perhaps even the world to that matter.
Hong Kong only imposes tax obligations on profits generated within the confines of its country and does not oblige payment or coverage of taxation to those income or revenues that are generated outside of the country. Meanwhile in Singapore, the country imposes taxes to revenues that are emanating within the country, while income generated outside of the country is going to be taxed if meets certain criteria, particularly on its receipt and remittance to Singapore.
Global companies and entrepreneurs in fact would be excited to know that both HK and SG has existing Double Tax Agreements (DTA’s) with other countries, which would include China, Canada, Japan, the United Kingdom and other countries. Further, both countries has 0% tax on capital gains and tax dividends, which is very attractive considering that these are cornerstones of businesses in a global scale.
Free trade agreements
Both countries have existing Free Trade Agreements with other countries. Moreover, Hong Kong has FTA’s with New Zealand, EFTA member states, Chile, and other major countries. Singapore on the other hand, has FTA’s with countries like Australia, India, Japan, the US, China and other countries.
Although very unique at their own rights as independent countries with unique and separate approach in managing their respective economic activities. Both Hong Kong and Singapore is by far the two (2) best countries in the world to do business at.
If you are interested in incorporating a company, opening a bank account, and ensuring that you have a 100% tax/regulatory compliant business in Hong Kong and Singapore, then contact us now, our team of experts can help you incorporate that company, open that bank account and handle your tax and regulatory matters in both Singapore and Hong Kong.