Company Incorporation – Singapore Versus Hong Kong

Which is a perfect jurisdiction for company incorporation? Singapore and Hong Kong happen to be dominant players within the Asian region, vying for that position of “a good option to work.Inch However the crucial questions are, which of those jurisdictions come with an edge within the other? Is incorporating a company simpler in Singapore or perhaps in Hong Kong?

Minimum Statutory Needs:

Singapore: a nearby registered address (residential or commercial but no PO Box), a nearby resident director, a nearby resident and qualified company secretary, a shareholder (individual or corporate), minimum compensated up capital of SGD 1.00 (no approved capital needed)

Hong Kong: a nearby registered address (residential or commercial but no PO Box), a director (local or foreigner), a nearby resident company secretary (individual or corporate), a shareholder (individual or corporate), minimum compensated up capital of HKD 1.00   approved share capital of HKD 10,000 symbolized by 10,000 ordinary shares of HKD 1.00 each

Incorporation Timeline:

Singapore: 1 morning

Hong Kong: 4-7 business days

Foreign Possession:

Singapore & Hong Kong: 100% foreign possession permitted

Corporate Taxes:

Singapore: Current corporate tax rate – 18%. However, corporate tax rate effective 2010 – 17%. Note: The effective tax rates are reduced – below 9% for profits as much as SGD 300,000 and limited to 18% for profits above SGD 300,000

Hong Kong: Current corporate tax rate – 16.5%

Government Charges:

Charges for company incorporation with Companies Registrar:

Singapore: SGD 315

Hong Kong : HKD 1,720   capital fee of HKD 1.00 for each or a part of HKD 1,000 from the nominal share capital (limited to HKD 30,000)

Charges for company registration with tax department:

Singapore: Nil

Hong Kong – HKD 2,450 (12 months registration certificate) or HKD 6,550 (3 year registration certificate)

Annual Filing Needs:

Singapore:

Annual returns together with audited annual accounts should be filed with Companies Registrar within 30 days from the Annual General Meeting.

Tax statements together with audited accounts should be filed using the Hmrc Authority of Singapore by 31 October every year.

Note: Dormant companies (i.e no accounting transactions for that financial year) and exempt private companies (only 20 shareholders and shares aren’t held by another company) by having an annual turnover of under SGD 5 million are exempt from audit needs for annual returns and tax statements. These businesses can file unaudited accounts.

Hong Kong:

Annual returns should be filed using the Companies Registry once in each and every twelve months (except around of incorporation) within 42 days following the anniversary from the company’s date of incorporation. Private limited information mill exempt from submitting accounts combined with the annual return.

Tax statements together with audited accounts should be filed using the Hmrc Department by 31 April every year. The auditor should be part of the Hong Kong Institute of Cpas and should hold a practicing certificate. Dormant companies (i.e no accounting transactions for that financial year) and small corporations (i.e total gross earnings doesn’t exceed HKD 500,000) are exempt from audit needs and may file unaudited accounts.

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