Singapore and Hong Kong company comparison in 2023
Singapore and Hong Kong tax exempt company comparison
| Hong Kong company | Singapore company | |
|---|---|---|
| Summary at a Glance | US$ | US$ |
| Total company set up costs | US$10,105 | US$13,253 |
| Subsequent annual costs (excl acc and tax fees) | US$3,050 | US$6,744 |
| How long to set the company up? | 1 week | 1 week |
| How long to open company bank account? | 4 weeks | 6 weeks |
| Issued share capital required | US$1 | US$1 |
| Corporate bank account | Yes | No |
| Tenancy agreement required before incorporation? | No | No |
| Do you visit the country for company incorporation? | No | No |
| Resident director required? | No | Yes* |
| Resident shareholder required? | No | No |
| Can sign sales contracts with Singapore clients | Yes | No |
| Can sign sales contracts with Hong Kong clients | No | Yes |
| Allowed to invoice clients in the country | No | No |
| Can rent office premises | No | No |
| Allowed to import raw materials? | No | No |
| Allowed to export goods? | No | No |
| Can the entity hire expatriate staff? | No | No |
| Legal considerations | ||
| Minimum number of directors | 1 | 1 |
| Minimum number of shareholders | 1 | 1 |
| Resident company secretary | Yes | Yes |
| Individual shareholders allowed | Yes | Yes |
| Corporate shareholders allowed | Yes | Yes |
| Public register of shareholders and directors | Yes | Yes |
| Types of business permitted | All legal activities | All legal activities |
| Tax and accounting considerations | ||
| Corporate tax payable (if non resident) | 0% | 0% |
| Statutory audit required | Yes | No |
| Annual tax return to be submitted | Yes | Yes |
| Access double tax treaties | 34 | 69 |
| Logistic considerations | ||
| Monthly Office rental per square foot | US$9 | US$7 |
| Average monthly staff salaries | US$2,800 | US$3,480 |
| Literacy rate (%) | 93.5% | 92.5% |
| Computer literacy rate (%) | 94.6% | 94.7% |
| Internet connectivity rating (%) | 99% | 99% |
| GDP per capita 2012 (US$) | US$36,796 | US$51,709 |
| Population % with degrees | 66% | 68% |
| Global business efficiency index score (higher better) | 93% | 89% |
| Ease of doing business global ranking (lower better) | 3 | 2 |
| Population (in million) | 7.4 million | 5.6 million |
| Population growth rate (%) | 0.8% | 0.5% |
| Unemployment rate | 5.2% | 2.4% |
| Inflation rate | 1.9% | -0.7% |
| Country credit rating (out of 100) | AA+ | AAA |
| Quality of life for staff | Good | Excellent |
| Pollution levels | Bad | Very good |
| Average income per capita | US$48,808 | US$68,136 |
| English spoken rate | 46% | 80% |
| Mercer cost of living | 1st location most expensive | 3rd location most expensive |
| Estimate of engagement costs | ||
| Healy Consultants engagement fees | US$3,350 | US$1,940 |
| Company secretary and legal registered office fees | US$1,550 | US$1,200 |
| Government fees | US$255 | 263 |
| Corporate bank account opening | US$4,950 | US$4,950 |
| Resident director fees (only if required by law) | 0 | US$4,900 |
| Estimate of total outgoings in Year 1 | US$10,105 | US$13,253 |
| Estimate of engagement costs (pdf) | View invoice PDF | View invoice 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$3,900 per resident director/representative per annum.
Singapore and Hong Kong resident company comparison
| Hong Kong company | Singapore company | |
|---|---|---|
| Total company set up costs | US$10,105 | US$13,223 |
| Subsequent annual costs (excl acc and tax fee) | US$3,050 | US$5,745 |
| How long to set the company up? | 1 week | 1 week |
| How long to open company bank account? | 4 weeks | 6 weeks |
| Issued share capital required | US$1 | US$1 |
| Corporate bank account | HSBC Hong Kong | SCB Singapore |
| Tenancy agreement required before incorporation? | No | No |
| Do you visit the country for company incorporation? | No | No |
| Resident director required? | No | Yes* |
| Resident shareholder required? | No | No |
| Can sign sales contracts with local clients | Yes | Yes |
| Allowed to invoice clients in the country | Yes | Yes |
| Can rent office premises | Yes | Yes |
| Allowed to import raw materials? | Yes | Yes |
| Allowed to export goods? | Yes | Yes |
| Can the entity hire expatriate staff? | Yes | Yes |
| Legal considerations | ||
| Minimum number of directors | 1 | 1 |
| Minimum number of shareholders | 1 | 1 |
| Resident company secretary | Yes | Yes |
| Individual shareholders allowed | Yes | Yes |
| Corporate shareholders allowed | Yes | Yes |
| Public register of shareholders and directors | Yes | Yes |
| Types of business permitted | All legal activities | All legal activities |
| Tax and accounting considerations | ||
| Company profits taxable? | Yes | Yes |
| Corporate tax payable (only for resident companies) | 16.5% | 17% |
| Capital gain taxable? | No | No |
| Foreign-sourced dividends taxable? | No | No |
| Statutory audit required | Yes | No |
| Annual tax return to be submitted | Yes | Yes |
| Access to how many double tax treaties? | 37 | 79 |
| Double tax treaties with Asian countries | Brunei, China, Indonesia, Japan, Vietnam, India, Thailand | China, Japan, South Korea, Hong Kong, Taiwan, Vietnam, India, Thailand, Myanmar, Malaysia, Brunei, Indonesia, Australia, Bahrain, Bangladesh |
| DTA with Cyprus and Malta | No | Yes |
| Withholding tax on dividends sent to Cyprus and Malta | 0 | 0 |
| Withholding tax on royalties sent to Cyprus and Malta | 5% | 10% |
| Withholding tax on management fees sent to Cyprus and Malta | 0 | 10% |
| Withholding tax on head office charges sent to Cyprus and Malta | 0 | 10% |
| Sales tax (GST) | None | 7% |
| Employment visa fees | US$7,950 | US$3,950 |
| How long to get work permit approved | 6 weeks | 4 weeks |
| Logistic considerations | ||
| Monthly Office rental per square foot | US$9 | US$7 |
| Average monthly staff salaries | US$2,800 | US$3,480 |
| Literacy rate (%) | 93.5% | 92.5% |
| Computer literacy rate (%) | 94.6% | 94.7% |
| Internet connectivity rating (%) | 99% | 99% |
| GDP per capita (US$) | US$36,796 | US$51,709 |
| Population % with degrees | 66% | 68% |
| Global business efficiency index score (higher better) | 93% | 89% |
| Ease of doing business global ranking (lower better) | 2 | 1 |
| Population (in million) | 7.4 million | 5.6 million |
| Population growth rate (%) | 0.8% | 0.5% |
| Unemployment rate | 5.2% | 2.4% |
| Inflation rate | 1.9% | -0.7% |
| Country credit rating (out of 100) | AA+ | AAA |
| Quality of life for staff | Good | Excellent |
| Pollution levels | Bad | Very good |
| Average income per capita | US$48,808 | US$68,136 |
| English spoken rate | 46% | 80% |
| Mercer cost of living | 1st location most expensive | 3rd location most expensive |
| Estimate of engagement costs | ||
| Healy Consultants engagement fees | US$3,350 | US$1,940 |
| Company secretary and legal registered office fees | US$1,550 | US$1,200 |
| Government fees | US$255 | US$263 |
| Corporate bank account opening | US$4,950 | US$4,950 |
| Resident director fees (only if required by law) | 0 | US$3,900 |
| Estimate of total outgoings in Year 1 | US$10,105 | US$13,223 |
| Estimate of engagement costs | View invoice PDF | View invoice 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$3,900 per resident director/representative per annum.
