Singapore and Hong Kong company comparison in 2022

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$12,253
Subsequent annual costs (excl acc and tax fee) US$3,050 US$5,744
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 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$12,253
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.

Contact us

For additional information on our company incorporation services, please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi
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