Setting up your business in singapore and hong kong: how to make it happen

Business environment in the Asia Pacific region.

In the world for economic freedom.

In the world for most motivated workforce.

Startup tax incentives

As a new company in Singapore, you’ll only pay a 4.25% interest tax on the first $100K in income you earn over the first three financial years.

Free trade agreements

Singapore has an extensive network of more than 24 free trade agreements (FTAs), which enable you to easily and effectively trade with your global suppliers and customers.

International tax treaties

Singapore has signed over 80 double taxation avoidance agreements to reassure entrepreneurs that they’ll receive proper tax treatment for their business.

Financial assistance

Loans and government funding are available to foreign businesses that are also 30% owned locally.
If these incentives aren’t convincing enough, then you should also be aware of the latest business opportunities Singapore offers as a result of the COVID-19 pandemic.

Appoint a director and administrator

The Singaporean government requires every company in the country to appoint one local resident as a business director, making them legally responsible for that business.

Establish a local office

What’s great about this requirement is that it’s not necessary to have to rent a physical office; you’re allowed to have a virtual office. If you’re working from home, you can just register a local Singaporean address (typically if you’re working with a local business consultant). If you do rent a commercial office, you’d have to provide that office’s address.

Report annual finances

You must report all of your annual finances to ACRA, the Accounting and Corporate Regulatory Authority of Singapore. All financial reports must also be in accordance with Singaporean accounting standards.

File texas

In Singapore, you’ll need to file taxes only once a year.

Employ a qualified secretary

It is mandatory for companies in Singapore to appoint a company secretary, who is a local resident, within six months of incorporation.

The process of registering a company in Singapore

Here we’ll go over 4 steps you need to take to set up your company in Singapore:

Conduct Research & Establish the Entity

Before taking the leap, it’s imperative that you come up with a go-to market roadmap for your global business. What are your goals for expanding your business to Singapore? Research the type of business you want to establish and how your niche is performing in the market.
You’ll also need to decide on the type of company you wish to establish and settle on a name. Once you have those two things, you’ll need to formally register your company and its name with ACRA. In fact, many new companies register as private limited companies due to its scalability.

Incorporate Your Company

Once you have your company name approved by ACRA, you’ll have to provide them with specific documents to officially register your company.
These include:

• Company name – must be approved by the ACRA.
• Description of business activities.
• Shareholders – minimum of one.
• Directors – at least one director must reside in Singapore.
• Company secretary – must be a Singaporean resident.
• Signed consent forms – from your directory and secretary.
• Paid-up capital – at least S$1.
• Registered address – a physical office address is required.

Apply for Licenses & Permits

Depending on your business’s activities, you may be required to obtain specific licenses and permits from the local government. If your business is in one of the following industries, then you will most likely need to get additional permits.

• Travel agencies
• Private school
• Financial adviser
• Childcare center
• Video company
• Liquor distribution/retail

Finalize Registration Process with ACRA & Open a Bank Account

After incorporating your company and gathering all your documents, you’ll need to complete the registration process with ACRA, whose approval can take anywhere between one to three business days, unless ACRA requires further vetting. Additional information that may be asked of you includes registered office hours, registration with Singapore customs and the Singapore Central Provident Fund, which is a pension fund for business owners.
Finally, you can open a bank account in Singapore, but there is no need to travel to do so; accounts can be opened remotely. In Singapore, there are a wide variety of banks that can help set up an account for you, even if you’re not located in the country at the time.
Now that you’re familiar with how to set up a business in Singapore and the benefits it can offer you, you should also consider expanding to Hong Kong, another great location for conducting global business.

Strategic location

Situated in the heart of Asia, Hong Kong is just a short flight to cities such as Tokyo and Singapore, and of course, offers quick access to China’s bustling market.

Productive workforce

Hong Kong has a very fast-paced working culture with a high level of education and experience.

Effective law system

Hong Kong has its own set of legal systems that are strongly enforced, and business-related rules are well-established and transparent.

Free economy

Hong Kong adopts a laissez-faire approach and has been classified as the world’s freest economy.

Low taxation

According to PWC & The World Bank Group, Hong Kong ranks #1 for the world’s most business-friendly tax system.

Leading financial hub

As one of the most competitive cities in the world, Hong Kong is a prime location for setting up your global business, connecting seamlessly to the rest of the world. The city hosts many global financial firms, insurance companies, banks and asset management firms.
With a plethora of incentives, you must be thinking, ok what’s the next step? To get your company registered in Hong Kong, let’s go over some of the basic requirements and documents needed to complete your registration.

Proposed Company Name

Just like setting up a company in Singapore, you’ll first need to settle on a company name which can be in either English or Chinese or a mix of both.

Hong Kong Registered Address

An incorporated company in Hong Kong must have a registered office in the jurisdiction. Note that a P.O. Box is not accepted as a registered office address.

Application Forms

• Incorporation form NNC1 with IRBR1
• Article of Association

Business Details

Make sure you’re able to provide basic facts about your business such as directors, shareholders, capital structure, activities and location.

Registering as a Private Limited Company

Most investors in Hong Kong choose to set up a private limited company to protect personal assets from business risks and liabilities. However, as a Hong Kong private limited company, you’ll need to have a minimum of one and a maximum of 50 shareholders. There is no residency requirement for shareholders, as long as they are over 18 years old.

Company Secretary

Just like in Singapore, a company secretary is mandatory and must reside in Hong Kong and have a registered office in the city. This individual is responsible for the books and records of the company.

Company Director

A minimum of one individual director and an unlimited maximum number of directors are allowed, as long they are over 18 years old.

Share Capital

When incorporating a business in Hong Kong, there is no minimum share capital requirement. However, if you do have share capital, it can be expressed in any major currency, and not just Hong Kong dollars (HKD).

Taxation and Compliance

As an incorporated Hong Kong company, you are obliged to pay corporate tax, (or profits tax, as it is called), at a rate of 16.5%. In addition, it is mandatory for companies to prepare and maintain accounts which must be audited annually by certified public accountants in Hong Kong.