Hong Kong is usually an attractive destination for expansion and registration of a Singapore company in another jurisdiction. Singapore and Hong Kong are well-known for being pro-business, strategically located and with strong financial sectors’. In spite of such similarities, there are clear disparities and benefits that render Hong Kong a preferred choice for Singaporean corporations. This article will now discuss why firms may be attracted to set up offices in Hong Kong from the Singaporean perspective, and review the main distinctions between the two economies.
Content Outline
Corporate Taxes: Hong Kong’s Tax Advantage
Corporate tax rate is among the most notable advantages of registering a Singaporean company in Hong Kong. Another reason that makes Hong Kong corporations to be a preferred location of headquarters is its favorable corporation tax structure, which charges them a flat of 16.5%. Singapore, on the other hand, has a 17% corporate tax rate. Although the variance may appear small, it can translate into huge effects to the firm’s profit margins particularly for entities that make substantial gross profits.
A major attraction for Singaporean companies in Hong Kong is the lower corporate tax rate, which helps them boost their profits and minimize taxation. When considered together with Hong Kong’s clear and simple tax regime, it places the city as a tax-effective haven for businesses.
Directorship Requirements: Flexibility in Hong Kong
The other notable difference between enrolling a company in Singapore and Hong Kong is the concern of directorship. Singapore requires a resident director, which in effect means that one of the directors should be a human being living in the country. For firms that want to go global but retain their key operations in Singapore, the residency requirement can be a limitation.
On the contrary, Hong Kong is freer in this sense. For a company registration in Hong Kong, not less than one of the directors of the company ought to be an individual person but there is no requirement for the director being a Hong Kong resident. Singaporean companies are thus more flexible in staying in Hong Kong without having to transfer a director there. This implies that a director of any nationality can act as the company’s representative hence making Hong Kong a universal destination for international business.
Business Registration in Hong Kong
For a Singaporean corporation to take advantage of registration to Hong Kong, the firm needs to conform to the policies set by the administration of Hong Kong. The process involves several key steps, including:
Choose a Business Structure: Just like in Singapore, Hong Kong also offers different business structures which companies can have upon registration; these include limited companies, sole proprietorships and partnerships.
Select a Unique Company Name: Hong Kong’s Companies Registry provides a selection of approved names that are already unique and have not been registered with any trademarks.
Appoint Directors and Shareholders: A Hong Kong company can have a minimum of one director and one shareholder. They can be occupied by nationals of any country as well as by corporate entities.
Registered Office Address: Give any one registered office address in Hong Kong for the purposes of all written official communication.
Company Secretary: Engage the services of a company secretary, who can be a Hong Kong resident or a registered Hong Kong company for regulatory compliance.
Business Registration Certificate: Get Inland Revenue Department’s Business Registration Certificate annually.
Bank Account Opening: Establish a Corporate Bank Account in Hong Kong for Financial Transactions.
Filing Required Documents: Lodge documents with the Hong Kong Companies Registry consisting the application for incorporation, Articles of Association and details of directors and shareholders.
Compliance and Reporting: Maintain compliance of Hong Kong regulatory, which involves annual financial reporting and tax filling.
Explore the Benefits of Hong Kong with FastLane Group
For Singaporean businesses considering registering in Hong Kong, there’s an opportunity to leverage the city’s strategic advantages and thriving business environment. Whether it’s the competitive corporate tax rate, the flexibility in directorship requirements, or access to a diverse and dynamic marketplace, Hong Kong has much to offer.
To make the process seamless, businesses can turn to service providers like FastLane. With FastLane, you can access a fully digital company secretary experience, including a cloud-based document management platform and friendly services that guide you through the intricacies of setting up and managing your business in Hong Kong. This streamlined approach can help Singaporean companies make the most of their expansion into the thriving metropolis of Hong Kong.
How can FastLane help?
FastLane is a professional firm offering
If you are a business looking to enter the Asian market, our team of professionals can help. We have seen significant growth in our network of business partners and support networks, and we currently work with more than 1000 companies. Talk to one of our experts today for more information.