Registering your company - Comparison of Singapore Vs Hong Kong
While deciding the Asia expansion strategy one question which businesses wrestle is where to incorporate their Asia operations? Is their choice is going to Singapore Or Hong Kong?
To begin with both these locations are excellent for business expansion, both these jurisdictions offer easy incorporation in less than a day. Both jurisdictions are known for lower corporate tax, strong legal framework, fast and easy setup of business and free fund repatriation. Company incorporation while easy in both the jurisdictions, it is commoditized in Hong Kong. Since most of the foreign entities if registering a company in Singapore need a Local Nominee Director the cost is going be higher in case of Singapore by at least 2000 to 2500 SGD per year. However considering the cost alone in deciding your Asia expansion strategy can be a costly mistake. The other relevant factors you may need to consider are;
English is quite commonly spoken in Singapore as it is primary language of communication. whereas in Hong Kong (especially in recent years), communicating in English in everyday life is getting more difficult. If you try to communicate in English at supermarkets, restaurants you will most often experience difficulties. What that means for your business finding right talent with right English speaking skills is going to be difficult in Hong Kong.
Hong Kong is located very near to China and it is right next to Guangzhou which is one of the major industrial zone in China. So if your business involves buying or selling products which are manufactured in China then Hong Kong may be a better choice.
Singapore in comparison is situated right at the heart of south east Asia. In a way it is equidistant from India, China and Australia (Three Major economies of the region). It is also quite near to few high population countries like India, China, Bangladesh, and Indonesia. So if your business involves taking benefit of all round development happening in Asia zone Singapore might be the better choice.
As the business grows most of the companies plan to relocate some key staff from the home country. Preferences of these employees might matter in that case. In general we have seen more people interested in relocating to Singapore as compared to Hong Kong.
Singapore is literally the curry pot of various cultures where hundreds of nationalities co –exist. You find restaurants, places of interest for people of all nationalities and cultures. Hong Kong in comparison is significantly dominated by Chinese culture.
In summary it can be said that in case your business is dominated by buying, selling or manufacturing in China then Hong Kong may be the better choice. However in case your business is targeting all round business development in Asia region then Singapore is the right choice.