Singapore

  • Corporate tax rate is 17%. Territorial tax system (generally includes money remitted into Singapore)
  • Easier to set up a bank account than in Hong Kong
  • Less paper-based, and more advanced on e-signatures and e-filing compared to Hong Kong
  • Has a local director requirement
  • Very clear set of rules around AGM/filing of Annual Return
  • Has an audit exemption (threshold is SGD 10million in revenue or assets)
  • Attractive location for companies looking at Southeast Asia market
  • Tax exemptions for new companies

Hong Kong

  • Territorial Tax System. Corporate tax rate is 8.25% on assessable profits up to $2,000,000; and 16.5% on any part of assessable profits over $2,000,000
  • No local director requirement
  • Annual audit of financial statements is required for all companies
  • More tedious and longer process to set up a bank account compared to Singapore
  • Companies Registry requires wet signatures and physical filing for some actions, so on average takes longer than Singapore
  • Attractive location for companies looking at the Chinese market
  • Tax exemptions for new companies
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