Hong Kong and Singapore have been fighting for the title of Asia’s “greatest location to conduct business” for many years. Among the reasons that both cities utilize to attract international investment are “friendly” tax laws, quick company registration processes and outstanding infrastructure.
If you’re looking for a corporate hub with more history, go no further than Hong Kong. Although Hong Kong was formerly unchallenged in the area, it was subsequently surpassed by Singapore. Singapore’s rapid and adaptable adoption of business-friendly policies has helped the city-state attract significant international investment and bolster the presence of foreign corporations in Asia.
There is no obvious response to the question of which of these two cities is the more desirable for conducting business nowadays. Hong Kong is the preferred location for companies that want to focus largely on China. Singapore is the go-to place for those who have their sights set on the European and American markets. Small and medium enterprises generally pick Singapore owing to the availability of more lucrative tax benefits and government assistance programs for businesses compared to competitor Hong Kong.
Let’s attempt to weigh the pros and cons of setting up a company in Singapore against Hong Kong. By the way, you can get a Hong Kong company registration service from Fintech Harbor Consulting. Help with starting a business in Hong Kong and obtaining all necessary permits can be found here.
Singapore and Hong Kong are ideally placed in the middle of the Asian continent. It takes between three and seven hours to fly to most Asian nations. Hong Kong’s location near the Pearl River’s mouth on China’s southeastern coast, however, is ideal if your company has to break into the mainland Chinese market. If you have a job in Hong Kong, getting to and from Beijing, Shanghai, and other Chinese metropolises is a breeze.
Considered the greatest in the world, Singapore’s Changi Airport and Hong Kong International Airport give convenient access to major cities in the Asia-Pacific area, as well as North America, Europe and the Middle East. The Port of Singapore is also noteworthy, since it is one of the busiest ports in the whole globe. Since it is connected to so many other countries, this port is a significant trading hub.
However, Hong Kong benefits from being the hub of southern China’s marine industry. It’s no secret that Singapore is now Southeast Asia’s busiest cargo port, surpassing even Hong Kong.
EASE OF DOING BUSINESS
Both Singapore and Hong Kong have earned a reputation for providing an inviting environment in which to launch a new company. It is simple to establish a new company in major urban centers. It takes around three business days to officially incorporate in Singapore or Hong Kong. IP rights are protected by law, and disputes may be taken to various forums for resolution.
Foreign investors are drawn to both nations because of their favorable corporate tax climates. The mobility of foreigners who seek to start a company in Singapore or Hong Kong is facilitated by an open immigration policy with sufficient facilities for launching a work visa. Additionally, opening a bank account in Singapore is now a lot simpler for Russian nationals than it was in Hong Kong.
Comparisons of how easy it is to conduct business in the two nations are common. According to the Globe Bank’s 2017 study on the ease of doing business worldwide, Singapore comes in at number two. Only three processes are needed within one to three business days to launch a company in Singapore or Hong Kong. Singapore is more successful than Hong Kong when it comes to cross-border trading.
The time required to finish the paperwork in Singapore is 1 business day, whereas in Hong Kong it takes 2 days. Property registration in Singapore takes 14 days, but in Hong Kong, it takes 57 days. It’s no surprise that Singapore and Hong Kong are at the top of the list for ease of doing business, given that they only need 2 processes and 12 days to get a firm started, whereas the rest of Asia requires 7 procedures and 38 days.