Singapore or Hong Kong? Where Best to Do Business
Singapore and Hong Kong are two of the best east Asian countries to start establish a business. Hong Kong has taken the lead for the past years but Singapore has been quickly making great strides to compete further.
Companies and brands from the US and UK have had relatively easy entries to both markets. The most common business has to do with building a regional headquarters for a global company as an expansion strategy and amass the Asian market.
HERE ARE HELPFUL INSIGHTS FOR EXPATS WHO ARE CHOOSING BETWEEN HONG KONG AND SINGAPORE TO DO BUSINESS.
As an overview of the two country’s strengths:
- Singapore has the top destination for maritime trade.
- Hong Kong is your choice if the objective is to eventually start business in Mainland China.
- Both have incredibly accessible international airports with hundreds of direct flights from Western regions on a daily basis
It’s a must to have business cover like public liability or product liability insurance. It’s a pre-requisite for any business in Hong Kong and Singapore.
Both countries have strict legal systems with regulations in place to help you with intellectual property rights and dispute resolution departments. However, Singapore wins over Hong Kong in terms of enforcing contracts and property registrations.
World Bank’s 2017 Ease of Doing Business ranking places SG at #2 and Hong Kong at #5. New Zealand was #1 last year.
In the annual Z/Yen survey of global financial centres Hong Kong beats Singapore but as the entry way to China, Hong Kong is the 3rd most powerful financial hub globally. Singapore is currently in 4th place.
Hong Kong ranks 1st in terms of financial services and financial technology.
The criteria for the rankings above are:
- business environment
- financial sector development
- human capital
Business registration can both be done online via website registration. The headline Singapore tax rate is 17% whereas it’s 16.5% in Hong Kong. There are also many tax exemptions available for both.
In Singapore, one of the directors must be a citizen while Hong Kong allows 100% ownership by expats.
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