Where exactly should an entrepreneur begin when they are starting their business? Which part of the world has the most incredible opportunities for your company’s growth and development?
Your company’s future depends on a number of variables, including market, suppliers, accessibility, convenience, and more. These are the same factors that a business owner must take into account when deciding where to incorporate their company.
Together with South Korea and Taiwan, Hong Kong and Singapore are part of the 4 Asian Tigers and continue to stake the claim to be Asia’s most business-friendly cities. The unbeatable qualities are what make these 2 cities the top choices for global entrepreneurs, and they should also be on your list.
In the Heart of Asia — Hong Kong and Singapore have a lot to offer, including their strategic geographical position allowing international entrepreneurs to connect to different countries and their bordering Asian regions.
With easy access to Shanghai, Beijing, and other cities, Hong Kong is the ideal location to work with mainland China. On the contrary, Singapore is renowned for its trading activity with the city’s top-notch harbours and biggest airport.
Tax-Friendly Framework — Hong Kong’s two-tiered tax system entices entrepreneurs to register their businesses in the region. The city imposes a super low profits tax of 8.25% on the first HK$2 million in net profits, a standard income tax of 15%, and a property tax of 15%.
In comparison, Singapore has a single-tier tax structure with a profits tax of 17%, a non-resident wage tax of 15%, and a property tax collection depending on the annual value of the property.
Dynamic Workforce — Hong Kong and Singapore provide a quality workforce that is highly motivated, skilled, adaptable, and English-speaking, each with its field of expertise.
Hong Kong is known as Asia’s Financial Hub, mainly focusing on the business and finance field. Meanwhile, Singapore is proud of its IT and software development companies giving them recognition as Asia’s Tech Hub.
Stable Economy — Hong Kong and Singapore are the most sought cities to start a business because of their strong economies, advanced telecommunications, and competitive infrastructures.
Hong Kong has earned its title as World’s Freest Economy because of its free trade, free enterprise, and free-market regulation. On the other hand, Singapore’s dynamic exporting, particularly in electronics, machinery, and equipment, has made it easier for entrepreneurs to find buyers.
Bank Account Opening — Hong Kong and Singapore strongly support international businesses’ banking needs. Still, the cities’ list of influential banks and leading FinTechs strictly adhere to the Know-Your-Client (KYC) procedure to comprehensively evaluate the application, verify the applicant’s source of funds, and determine the monetary activity they should expect from their accounts. Therefore, hiring a professional advisor to conduct a thorough pre-assessment of your company profile and business documents is vital to determine the probability of acquiring a corporate bank account in Hong Kong vs. Singapore after incorporating your venture.
It is a given fact that traditional banks have a time-consuming procedure, making business owners opt to open a FinTech (Financial Technology) account as their backup plan. This platform is a substitute while waiting for their regular bank accounts to be approved and to continue carrying out global transactions without delay.
Easy Company Formation — It only takes 1 day for foreign entrepreneurs to form their business in Hong Kong, provided that their company has one sole director, who can be a non-HK resident, and one HK resident company secretary, who can be provided by a local agency. Plus, the city has no nationality restriction, making it easier for international business owners to set up their ventures in the area. Quite the opposite, Singapore requires a company to have one sole director and one company secretary, both residents of Singapore.
Choosing the location for a company is part of your business strategy, and finding the ‘best’ or ‘perfect’ site to launch your venture can be too overrated. Hong Kong and Singapore are no exceptions to the factors you need to consider when establishing your enterprise since these are the things that can make or break your business. The qualities these cities have could help or harm your business growth. Deciding where to position your business needs extensive research, analysis, and networking efforts.