Singapore and Hong Kong company comparison

Singapore and Hong Kong company comparison

Singapore and Hong Kong tax exempt company comparison

 Hong Kong companySingapore company
Summary at a GlanceUS$US$
Total company set up costsUS$6,255US$7,940
Subsequent annual costs (excl acc and tax fees)US$7,535US$5,950
How long to set the company up?1 week1 week
How long to open company bank account?4 weeks4 weeks
Issued share capital requiredUS$1US$1
Corporate bank accountYesNo
Tenancy agreement required before incorporation?NoNo
Do you visit the country for company incorporation?NoNo
Resident director required?NoYes*
Resident shareholder required?NoNo
Can sign sales contracts with Singapore clientsYesNo
Can sign sales contracts with Hong Kong clientsNoYes
Allowed to invoice clients in the countryNoNo
Can rent office premisesNoNo
Allowed to import raw materials?NoNo
Allowed to export goods?NoNo
Can the entity hire expatriate staff?NoNo
Legal considerations
Minimum number of directors11
Minimum number of shareholders11
Resident company secretaryYesYes
Individual shareholders allowedYesYes
Corporate shareholders allowedYesYes
Public register of shareholders and directorsYesYes
Types of business permittedAll legal activitiesAll legal activities
Tax and accounting considerations
Corporate tax payable (if non resident)0%0%
Statutory audit requiredYesNo
Annual tax return to be submittedYesYes
Access double tax treaties3469
Logistic considerations
Monthly Office rental per square footUS$9US$7
Average monthly staff salariesUS$2,800US$3,480
Literacy rate (%)93.5%92.5%
Computer literacy rate (%)94.6%94.7%
Internet connectivity rating (%)99%99%
GDP per capita 2012 (US$)US$36,796US$51,709
Population % with degrees66%68%
Global business efficiency index score (higher better)93%89%
Ease of doing business global ranking (lower better)21
Population (in million)7.2 million5.3 million
Population growth rate (%)0.4%1.99%
Unemployment rate3.3%2.1%
Inflation rate6.9%1.9%
Country credit rating (out of 100)AAAAAA
Quality of life for staffGoodGood
Pollution levelsBadVery good
Average income per capitaUS$35,160US$42,930
English spoken rate46%80%
Mercer cost of living6th location most expensive5th location most expensive
Estimate of engagement costs
Healy Consultants engagement feesUS$2,350US$1,940
Company secretary and legal registered office feesUS$1,100US$1,100
Government feesUS$2550
Corporate bank account openingUS$2,550US$2,950
Resident director fees (only if required by law)0US$1,950
Estimate of total outgoings in Year 1US$6,255US$7,940
Estimate of engagement costs (pdf)


*In accordance with section 145 (1) of the Singapore Companies Act, every Singapore Company shall have at least one directors who are ordinarily residents in Singapore. Most of our Clients request Healy Consultants to be the resident director/representative. If required, Healy Consultants resident director/representative service fee amounts to US$1,950 per resident director/representative per annum.

Singapore and Hong Kong resident company comparison

 Hong Kong companySingapore company
Total company set up costsUS$6,255US$6,980
Subsequent annual costs (excl acc and tax fee)US$7,535US$6,950
How long to set the company up?1 week1 week
How long to open company bank account?4 weeks4 weeks
Issued share capital requiredUS$1US$1
Corporate bank accountHSBC Hong KongSCB Singapore
Tenancy agreement required before incorporation?NoNo
Do you visit the country for company incorporation?NoNo
Resident director required?NoYes*
Resident shareholder required?NoNo
Can sign sales contracts with local clientsYesYes
Allowed to invoice clients in the countryYesYes
Can rent office premisesYesYes
Allowed to import raw materials?YesYes
Allowed to export goods?YesYes
Can the entity hire expatriate staff?YesYes
Legal considerations
Minimum number of directors11
Minimum number of shareholders11
Resident company secretaryYesYes
Individual shareholders allowedYesYes
Corporate shareholders allowedYesYes
Public register of shareholders and directorsYesYes
Types of business permittedAll legal activitiesAll legal activities
Tax and accounting considerations
Company profits taxable?YesYes
Corporate tax payable (only for resident companies)16.5%17%
Capital gain taxable?NoNo
Foreign-sourced dividends taxable?NoNo
Statutory audit requiredYesNo
Annual tax return to be submittedYesYes
Access to how many double tax treaties?3779
Double tax treaties with Asian countriesBrunei, China, Indonesia, Japan, Vietnam, India, ThailandChina, Japan, South Korea, Hong Kong, Taiwan, Vietnam, India, Thailand, Myanmar, Malaysia, Brunei, Indonesia, Australia, Bahrain, Bangladesh
DTA with Cyprus and MaltaNoYes
Withholding tax on dividends sent to Cyprus and Malta00
Withholding tax on royalties sent to Cyprus and Malta5%10%
Withholding tax on management fees sent to Cyprus and Malta010%
Withholding tax on head office charges sent to Cyprus and Malta010%
Sales tax (GST)None7%
Employment visa feesUS$7,950US$2,950
How long to get work permit approved6 weeks4 weeks
Logistic considerations
Monthly Office rental per square footUS$9US$7
Average monthly staff salariesUS$2,800US$3,480
Literacy rate (%)93.5%92.5%
Computer literacy rate (%)94.6%94.7%
Internet connectivity rating (%)99%99%
GDP per capita (US$)US$36,796US$51,709
Population % with degrees66%68%
Global business efficiency index score (higher better)93%89%
Ease of doing business global ranking (lower better)21
Population (in million)7.2 million5.3 million
Population growth rate (%)0.4%1.99%
Unemployment rate3.3%2.1%
Inflation rate1.9%6.9%
Country credit rating (out of 100)AAAAAA
Quality of life for staffGoodExcellent
Pollution levelsBadVery good
Average income per capitaUS$35,160US$42,930
English spoken rate46%80%
Mercer cost of living6th location most
expensive
5th location most
expensive
Estimate of engagement costs
Healy Consultants engagement feesUS$2,350US$1,980
Company secretary and legal registered office feesUS$1,100US$1,100
Government feesUS$2550
Corporate bank account openingUS$2,550US$1,950
Resident director fees (only if required by law)0US$1,950
Estimate of total outgoings in Year 1US$6,255US$6,980
Estimate of engagement costs


*In accordance with section 145 (1) of the Singapore Companies Act, every Singapore Company shall have at least one directors who are ordinarily residents in Singapore. Most of our Clients request Healy Consultants to be the resident director/representative. If required, Healy Consultants resident director/representative service fee amounts to US$1,950 per resident director/representative per annum.

Contact us

For additional information on our company incorporation services, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi
singapore business federation acra - accounting and corporate regulatory authority Singapore Ministry of Manpower (MOM) Institute of Singapore chartered accountant (ISCA) Institute of Singapore chartered accountant (ISCA) saicsa icsa - institute of chartered secretaries and administrators SIngapore exchange ltd - The Asian Gateway | SGX