Entrepreneurs must begin somewhere, but where exactly? Which region in the globe offers the best chances for your company formation and business growth?
Certain factors can make or break your business’s future — market, suppliers, accessibility, convenience, and more. These elements are what business owners keep in mind when choosing the right location to register company.
As part of the Four Asian Tigers, along with South Korea and Taiwan — Hong Kong and Singapore continue to compete to be the finest business-friendly city in Asia. Here are the key components of why these metropolises are top choices and why they should be on your list too.
In the Heart of Asia — Hong Kong and Singapore connect their businesses to different countries and neighboring Asian regions, giving them a vast network and market for international entrepreneurs after finishing company formation.
Hong Kong is the best place to work with mainland China, where you can travel back and forth to Shanghai, Beijing, and other cities. In comparison, Singapore is famous for trading activities with its excellent harbours and busiest airport.
Tax-Friendly Framework — Hong Kong follows a 2-tier tax administration with a profits tax rate of 8.25% for the first HK$2 million net profits, a standard salary tax rate of 15%, and a rate of 15% for property tax. The 8.25% profits tax rate is very appealing for entrepreneurs to go for Hong Kong company registration.
Singapore, on the other hand, has a single-tier tax system with a 17% tax rate for profits tax, a 15% salary tax rate for non-residents, and a property tax collection based on the annual value of the property.
Dynamic Workforce — Hong Kong and Singapore offer a competent workforce that is highly motivated, skilled, versatile, and English-speaking human resources, each with its area of specialization.
Hong Kong’s population focuses on finance and business, deeming it Asia’s Financial Hub. At the same time, Singapore takes pride in IT and software development firms and is recognized as Asia’s Tech Hub.
Stable Economy — Hong Kong and Singapore have robust economies, cutting-edge telecommunications, and competitive infrastructures, and that’s why both are popular jurisdictions for company formation online.
But Hong Kong was labeled as the World’s Freest Economy because of its free trade, free enterprise, and free-market regulation. While Singapore became a dynamic exporter mainly in electronics, machinery, and equipment, making it easier for business owners to find buyers.
Bank Account Opening — Hong Kong and Singapore have a list of prestigious banks and top-tier FinTechs that supports international business banking needs. However, both cities strictly comply with the Know-Your-Client (KYC) procedure to properly filter the applications they receive, establish their source of funds, and what type of transactions they should expect from their accounts. That’s why hiring an experienced agent to provide pre-assessment is crucial for you to know the success rate of getting a bank account in Hong Kong vs. Singapore after company registration.
Due to the lengthy process required to open a traditional bank account, some business owners choose FinTechs (Financial Technology) as an alternative to conducting instant global transactions, also serving as a backup account while waiting for the approval of a traditional bank account.
Easy Company Registration — Incorporation in Hong Kong is straightforward and can be done in 1 day. Since there is no nationality restriction in the region, company registration HK requires one sole director, which can be a non-HK resident, and one HK resident company secretary, for which most company formation service providers can offer. Contrary to registering a company in Singapore, the company needs to have one sole director and one company secretary, and both must be residents of SG.
Picking the “best” or “perfect” location for your company registration plan may be too broad. Your preferences, needs, and other factors play a significant role when choosing where to settle your business, and Hong Kong and Singapore are no exceptions. These cities contain perks and features that may be an advantage or a disadvantage in growing your business. Extensive research, analysis, and networking are essential in figuring out where to establish your company.