Singapore or Hong Kong: where should you start a business?
Hong Kong ranks higher in the index, 04 against 07. Which suits you depends on where the owners live, what the company is for and how it will be run.
Pillar by pillar
Doing business, side by side
Tax
A start-up exemption applies to the first S$200,000 of income for three years of assessment. Goods and services tax is charged at 9%.
The first HK$2 million of profit is taxed at 8.25%, and tax is charged on a territorial source basis. There is no sales tax or VAT.
Set-up
Registration costs S$315 in total and is usually approved within 15 minutes of payment. Share capital can be S$1, and the annual return costs S$60.
Electronic incorporation costs HK$1,545, against a one-hour target met in 90% of cases. Business registration costs HK$2,350 and the annual return HK$105.
On the ground
At least one director must be ordinarily resident in Singapore, and the company must appoint a company secretary within six months.
The company secretary must be resident in Hong Kong, and the company must keep a registered office there. There is no minimum capital.
Ownership
ACRA's central register of controllers is available only to law enforcement agencies, and members of the public cannot access it.
The significant controllers register is kept by the company, not filed with the Registry, and must be produced to law enforcement on demand.
Residence
The EntrePass is open to an applicant holding at least 30% of a venture-backed or innovative company, who must also meet one of five further criteria.
The Investment as Entrepreneurs route is discretionary with no fixed minimum. The New Capital Investment Entrant Scheme requires HK$30 million.
Living and working
Currency
Singapore dollar.
Hong Kong dollar.
Time zone
UTC+8.
UTC+8.
Personal tax
Estate duty does not apply to deaths on or after 15 February 2008.
Salaries tax has a progressive top rate of 17%, or a standard rate of 15% to 16%; estate duty was abolished from 11 February 2006.
Flights
Changi connects Singapore to over 170 cities (January 2026); Singapore Airlines takes about 13 hrs 45 mins to 14 hrs to London and 18 hrs 25 mins to New York.
About 140 airlines serve more than 220 destinations; Singapore is about 4 hrs away and London Heathrow about 12 hrs 45 mins.
Language
English, Malay, Mandarin and Tamil are official languages, and all court proceedings are conducted in English.
Chinese is official, and English can also be used as an official language by the executive, the legislature and the judiciary.
Singapore vs Hong Kong: common questions
Singapore: A start-up exemption applies to the first S$200,000 of income for three years of assessment. Goods and services tax is charged at 9%. Hong Kong: The first HK$2 million of profit is taxed at 8.25%, and tax is charged on a territorial source basis. There is no sales tax or VAT.
Singapore: Registration costs S$315 in total and is usually approved within 15 minutes of payment. Share capital can be S$1, and the annual return costs S$60. Hong Kong: Electronic incorporation costs HK$1,545, against a one-hour target met in 90% of cases. Business registration costs HK$2,350 and the annual return HK$105.
Singapore: At least one director must be ordinarily resident in Singapore, and the company must appoint a company secretary within six months. Hong Kong: The company secretary must be resident in Hong Kong, and the company must keep a registered office there. There is no minimum capital.
Singapore: ACRA's central register of controllers is available only to law enforcement agencies, and members of the public cannot access it. Hong Kong: The significant controllers register is kept by the company, not filed with the Registry, and must be produced to law enforcement on demand.
Singapore: The EntrePass is open to an applicant holding at least 30% of a venture-backed or innovative company, who must also meet one of five further criteria. Hong Kong: The Investment as Entrepreneurs route is discretionary with no fixed minimum. The New Capital Investment Entrant Scheme requires HK$30 million.
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