Hong Kong and Singapore are usually the top two most chosen places for setting up new businesses for entrepreneurs who are not residents of either cities.
For an entrepreneur who is looking to venture into the fast growing Asian region, often you may be struggling to distinguish place is best for your business. Should you choose to incorporate a company in Singapore? Or should you choose Hong Kong?
In both Hong Kong and Singapore, the owner (or founder) even as a foreigner is allowed to own the company by 100% not like some other advanced countries which have many restrictions.
Therefore, you will have no need for finding a local partner to hold the shares for a company incorporation in Hong Kong or Singapore.
Both cities offer good legal and corporate systems, and are more than capable to communicate mainly in English.
From time to time, Singapore and HK may compete in the top one destination spot for Asia headquarters of big corporates and first office of new startups.
The reliable banking system and the low tax rates have formed the main advantages to attract businesses to set up businesses in the two regions, even though they are geographically small.
Both HK and SG are able to get relatively high efficiencies at managing their tax income and can pass the savings onto their citizens/residents (and work force) and local companies.
The economies of both places belong to Asia’s most booming business destinations – They offer plenty of business opportunities in many different industries.
Singapore is a city which encourages the formation of small and medium companies through a generous regime of tax breaks and grants. SG provides government grants of up to 60% of costs for the purchase of technology including computers, workstations, accounting software, etc. Hong Kong does not grant funds for the purchase of hardware, but provides various government funding schemes for software upgrades and company system upgrades.
The price of residential properties are also being considered by the entrepreneurs especially when they are foreigners who are planning to relocate and live in Hong Kong or Singapore in order to actively run and manage their businesses at the spot. In this aspect, Singapore has a slight advantage as the housing is a bit more affordable than in Hong Kong. Both places would charge no direct taxes on dividends, capital gains, inheritances or estates.
Hong Kong has another advantage. It is the gateway for the western countries to enter the mainland China market which provides almost unlimited opportunities and possibilities for any new business.