Opening Q1 2027 Discuss my company structure

Resources · Hong Kong vs Singapore

Opening Q1 2027

Hong Kong or Singapore company? Your investors say one, your suppliers the other.

At a glance

A Singapore company pays 17% tax with a partial exemption, needs a resident director and is usually exempt from audit while small. A Hong Kong company pays 8.25% then 16.5%, only on Hong Kong-sourced profits, with no resident director and no sales tax, but every company is audited. Regional investors favour Singapore; China trade favours Hong Kong.

Discuss my company structure See the full comparison

Updated 31 October 2026

Structure fit

Five questions to test your case

Answer five questions. Nothing leaves your browser until you send the form.

  1. 01 Where are most of your customers and suppliers?

    This decides which tax treaties matter to you.

    In the table: Typically chosen for, Double tax treaty network

  2. 02 Will you raise venture capital from regional funds?

    Investors buy shares in the holding, so its jurisdiction matters to them.

    In the table: Typically chosen for

  3. 03 Will a director live in the jurisdiction?

    Singapore requires a resident director; Hong Kong does not.

    In the table: Resident director, Work visas

  4. 04 What income will the company receive from outside the jurisdiction?

    Both tax foreign income in some cases; the rules differ by type.

    In the table: Tax basis and foreign-sourced income, Corporate tax and tiers

  5. 05 How do you feel about a mandatory yearly audit?

    Hong Kong audits every company; small Singapore companies are usually exempt.

    In the table: Annual audit

Answer to see which way you lean 0 / 5 answered

Answer all five to see your result.

Before and after we open

Available now

What Innaltis can do today

  • A structuring consultation with our founders, held remotely, with a written summary.
  • Guidance on choosing between Singapore and Hong Kong, and on what each company costs to set up and run.
  • Early access to our incorporation and compliance services before they open, with no payment and no commitment.
Planned service

Planned for Q1 2027

  • Company incorporation in Singapore and Hong Kong, with company secretary and registered address.
  • Yearly compliance packages: bookkeeping, accounts, tax filings, annual return and meetings.
  • Atlas, the client platform: group view, cap table, deadlines and documents.

Incorporation and ongoing compliance open in Q1 2027. Registering now reserves your founding-client terms. Nothing is filed and nothing is charged before then.

How do Hong Kong and Singapore companies compare?

The twelve points that settle most decisions.

How do Hong Kong and Singapore companies compare?
Criterion Singapore Hong Kong
Corporate tax and tiers 1,10,11 17% flat. Partial exemption: 75% of the first S$10,000 and 50% of the next S$190,000 of chargeable income. New companies may instead take the start-up exemption for their first three years (75% of the first S$100,000, 50% of the next S$100,000), but not if the company is mainly investment holding, has more than 20 shareholders, or is owned by companies without one individual holding at least 10%. YA 2026 rebate: 50% of tax payable, capped at S$40,000. 8.25% on the first HK$2 million of assessable profits, 16.5% above. Only one entity in a group of connected entities can elect the lower tier each year; the others pay 16.5% from the first dollar.
Tax basis and foreign-sourced income 2,10,12 Singapore-sourced income, plus foreign income when it is received in Singapore. Foreign dividends, branch profits and service income are exempt if they were taxed abroad and the source country's headline rate is at least 15%. Foreign income of a business carried on in Singapore is taxed as it accrues. Territorial: only profits arising in or derived from Hong Kong are taxed. Offshore profits are not taxed, but the claim has to be demonstrated. Since 2023, foreign interest, dividends, disposal gains and IP income received in Hong Kong by a member of a multinational group (a Hong Kong company with a foreign parent is one) are taxed unless the company meets the economic substance, participation or nexus test.
Resident director 5,14 Required: at least one director ordinarily resident in Singapore (citizen, permanent resident or qualifying pass holder). If none of you qualifies, a nominee director costs S$2,000 a year. Not required. A non-resident can be the only director; at least one director must be an individual.
Company secretary 5,14 Required within six months of registration. An individual who meets the residency rules, and not the sole director. Required. An individual who ordinarily lives in Hong Kong, or a company with an office there. Not the sole director.
Minimum capital 6,15 S$1 and one share. Around S$65,000 paid up is the usual benchmark if the company will sponsor an Employment Pass. No legal minimum paid-up capital.
Annual audit 7,16 Exempt for a small private company that meets two of three tests: revenue up to S$10 million, assets up to S$10 million, 50 employees or fewer. A subsidiary is tested on its whole group. Shareholders holding 5% can still ask for an audit. ACRA is consulting on higher thresholds (February 2026). Mandatory for every company except dormant ones, including small private companies. Signed by a CPA firm. Our partner firm charges from HK$8,000 a year.
GST, VAT or sales tax 3,17 GST at 9%. Registration is compulsory once taxable turnover exceeds S$1 million in a calendar year, or is expected to in the next 12 months. None: no sales tax and no VAT.
Typical incorporation time 8,15 Most registrations are approved soon after payment; complex cases take up to 15 working days, and those referred to another authority 14 to 60 days. Allow 1 to 3 business days once identity checks and documents are complete. Electronic incorporation of a private company is normally issued within 1 hour of filing, with the business registration certificate.
Banking for non-resident owners No official timeline. Each bank runs its own checks on owners, source of funds, activity and local presence, and non-resident owners should expect more questions. The account is often the longest step. No official timeline here either, and each bank decides. Be ready to show where the business is run, who the customers and suppliers are, and why the company is in Hong Kong.
Work visas 9,18 Employment Pass: a qualifying salary from S$5,600 a month (rising with age; S$6,000 for new applications from 1 January 2027), then 40 points on the COMPASS framework. General Employment Policy: quota-free and open to any sector. Normally a degree, a genuine job that cannot readily be filled locally, and pay in line with the market. No published minimum salary.
Double tax treaty network 4,13,19,20 96 comprehensive agreements signed, 93 in force at 31 March 2026, including China and the Philippines. Comprehensive agreements with 61 jurisdictions, 51 in force, including the arrangement with the Chinese Mainland. No agreement with the Philippines.
Typically chosen for A regional holding, Southeast Asian operations and raising funds from investors. Trade with mainland China, trading and sourcing.

General information, not tax advice. Rates and thresholds change from year to year.

What does each company cost to run in year 1 and year 2?

Our Ascent package in each place: secretarial compliance, accounting and tax. Planned launch prices, each in its own currency.

Singapore

SGD

Year 1: set-up and first year

Incorporation (one-off)
S$500
ACRA name and registration fees, at cost
S$315
Ascent package, first year
S$1,990
Nominee director, if nobody lives in Singapore
S$2,000
Total
S$ 4,805

Year 2 and each year after

Ascent package
S$1,990
ACRA annual return fee, at cost
S$60
Nominee director, if still needed
S$2,000
Total
S$ 4,050
Without a nominee (a director lives in Singapore)
S$2,805 then S$2,050
Audit: small companies are usually exempt
S$0

Range: Spark to Zenith, with a nominee: S$3,805 to S$5,805 in year 1, S$3,050 to S$5,050 after.

Spark is secretarial only: accounts (from S$800) and the tax filing (S$700) are add-ons. GST returns are an add-on on Zenith (S$330 a quarter).

Hong Kong

HKD

Year 1: set-up and first year

Incorporation (one-off)
HK$4,000
Companies Registry incorporation fee, at cost
HK$1,545
Business Registration fee and levy, at cost
HK$2,350
Ascent package, first year
HK$19,800
Total
HK$ 27,695

Year 2 and each year after

Ascent package
HK$19,800
Business Registration renewal, at cost
HK$2,350
Annual return fee, at cost
HK$105
Total
HK$ 22,255
No nominee director needed
HK$0
Statutory audit, billed directly by our partner CPA firm
from HK$8,000 a year

Range: Spark to Zenith: HK$16,795 to HK$31,695 in year 1, HK$11,355 to HK$26,255 after, plus the audit.

Spark is secretarial only: accounts and the profits tax return need Ascent. An offshore profits claim, if you are eligible, is HK$12,000 per claim.

Planned launch prices, confirmed in writing before you commit. Government fees are billed at cost. A new company pays a one-off incorporation fee. Statutory audit in Hong Kong is billed by the partner CPA firm. Taxes are not included. Incorporation and yearly packages open in Q1 2027.

Three typical cases

These are illustrations. The companies are invented.

Leans Singapore

A European SME selling services into Southeast Asia

An engineering consultancy in Lyon with clients in Vietnam, Indonesia and the Philippines, sending two staff to the region.

Singapore is the usual regional base, and its treaty list covers the Philippines, which Hong Kong's does not. The two staff can take the resident-director role on Employment Passes. Watch the audit: the exemption is tested on the whole group, so if the group has more than S$10 million of revenue and more than S$10 million of assets, the subsidiary is audited too. Because a company holds the shares, the start-up exemption does not apply. The partial exemption does.

In the table: Typically chosen for, Double tax treaty network, Resident director, Annual audit, Corporate tax and tiers

Leans Hong Kong

A trading company sourcing from mainland China

A homeware brand buying from factories in Guangdong and selling to retailers in Europe, run from Amsterdam.

This is what Hong Kong companies are usually chosen for. Nobody has to move, since Hong Kong needs no resident director, and there is no sales tax on the margin. If the buying and selling take place outside Hong Kong, the profits may be offshore. The claim is not automatic and has to be demonstrated. Budget for the yearly audit from day one.

In the table: Typically chosen for, Resident director, GST, VAT or sales tax, Tax basis and foreign-sourced income, Annual audit

Leans Singapore

A founder raising venture capital from regional funds

A software team in Ho Chi Minh City preparing a seed round with Southeast Asian funds.

Regional funds usually invest through a Singapore company, so the holding goes there and the operating company stays with the team. Until a founder relocates on an Employment Pass, a nominee director fills the resident role. The start-up exemption excludes investment holding companies, so the holding gets the partial exemption instead. A small company is usually exempt from audit, though investors with 5% can ask for an audit.

In the table: Typically chosen for, Resident director, Work visas, Corporate tax and tiers, Annual audit

When should you choose Singapore, Hong Kong or both?

Choose Singapore if

  • You sell into Southeast Asia or want one holding for the region.
  • You plan to raise from regional venture funds.
  • A director will live in Singapore, or a nominee at S$2,000 a year fits the budget.
  • You want to avoid a yearly audit while the company is small.
  • You invoice countries that are on Singapore’s treaty list and not on Hong Kong’s.

What a Singapore company needs, step by step

Choose Hong Kong if

  • You buy from or sell to mainland China, or run a trading business.
  • Nobody will relocate and you would rather not appoint a nominee director.
  • Your profits are earned outside Hong Kong and you can document how.
  • Having no sales tax matters for your pricing.
  • You accept a yearly audit as a cost of doing business.

Setup requirements and costs for a Hong Kong company

Consider both if

  • You raise money in Singapore and trade with China. A Singapore holding with a Hong Kong trading subsidiary covers both.
  • Each entity then has its own secretary, accounts and filings, and the Hong Kong one its audit.
  • Prices between the two must be at arm’s length. Settle the transfer pricing before you start.

Plan the filing calendar for every entity you run

What to settle with a tax adviser

Whether a structure works also depends on the rules where you and your shareholders live. Our structuring consultation lists the questions to put to a licensed tax or legal adviser, and why each one matters.

Innaltis provides consulting and corporate services, not legal or tax advice. Where your situation needs a formal opinion, we name the question and refer you to a licensed adviser.

What the structuring consultation covers

Two neat stacks of company documents side by side on a wooden desk in daylight

  1. Controlled foreign company rules

    Your home country may tax the profits of a low-taxed foreign subsidiary as if they were yours, whatever Singapore or Hong Kong charge.

  2. Exit tax

    Moving shares, intellectual property or yourself abroad can trigger a tax on unrealised gains at home.

  3. Permanent establishment and management

    A company managed from Paris or Munich may be taxable there, or treated as resident there.

  4. Personal tax residency

    Where you live decides how your salary, director fees and dividends are taxed, wherever the company is registered.

  5. Transfer pricing

    Services, goods and licences between group companies must be priced as between strangers, and documented.

Advice on your own case

Start with a free call. If your case needs more, a structuring consultation applies these rules to your owners, your customers and your home country, and ends with a written summary.

Available now

Introductory call

30 minutes · Free

A 30-minute call to understand your owners, activity and timeline, and to tell you whether a structuring consultation is worth your time. No commitment.

Available now

Structuring consultation

2 hours with our founders, remote · S$880, fixed

We agree the agenda with you beforehand. Within three business days you receive a written summary: the recommended structure, the alternatives we considered, what it takes to run, what it costs, and the questions to put to a tax or legal adviser.

You receive

  • Recommended structure with the alternatives considered
  • Operating requirements: directors, secretary, audit, banking, visas, substance
  • Cost framework for setup and the first two years
  • List of questions for a licensed tax or legal adviser, with why each matters
  • Next steps and timeline

What it costs

Our prices are published. Government fees are billed at cost, and every price is confirmed in writing before you commit.

Who you will work with

Innaltis is run by its founders, who come from corporate consulting and business law. You deal with them directly, from the first call to the written summary. Structuring questions are part of the job, never a surprise invoice. Regulated filings are executed by licensed firms we appoint and supervise, each named in your engagement letter. We introduce the team by name at launch.

How we work

  1. Scope

    A 30-minute call on your owners, activity, target market and timeline. We then agree the agenda and the price in writing.

  2. Structure

    We write up the structure: entities, ownership, directors, substance and the questions that need a specialist tax or legal opinion.

  3. Set up

    Once we open: incorporation, company secretary, registered address and resident director where required, executed by licensed firms we appoint and supervise.

  4. Run

    Bookkeeping, accounts, tax, annual return and meetings tracked in Atlas and reviewed by people, with a reminder before every deadline.

Discuss your company structure

Tell us where you stand. We reply within one business day to set up the free introductory call (30 minutes).

  • Introductory call: 30 minutes, free.
  • Structuring consultation: S$880, fixed.
Where is your project?
Which way are you leaning?

We reply within one business day. No payment and no commitment: this request only starts a conversation. We never share your data, and you can ask us to delete it at any time.

Questions founders ask about Hong Kong and Singapore

Is Hong Kong really 0% tax for offshore profits?

Not automatically. Hong Kong taxes only profits that arise in or are derived from Hong Kong, so profits earned outside it are not taxed there. The exemption has to be demonstrated in an offshore claim, with evidence of where the contracts are negotiated and the work is done, and the Inland Revenue Department examines it.

Since 2023, foreign dividends, interest, disposal gains and IP income received in Hong Kong by a company in a multinational group are taxed unless it meets a substance or participation test. Your home country may also tax those profits. We do not promise lower tax. We set up structures that stand up to investor due diligence and to tax authorities. If someone promises you zero tax, ask them where the substance is.

Can I run a Singapore company without living there?

Yes, but one director must be ordinarily resident in Singapore. If none of you qualifies, we arrange a nominee director (S$2,000 a year). If you later move to Singapore on an Employment Pass, you can take over that role and the nominee arrangement ends. The company secretary must also meet the residency rules; it is included in every package.

Do I need both a Hong Kong and a Singapore company?

Usually not at the start. Two companies make sense when the reasons pull both ways, typically a Singapore holding for investors and a Hong Kong subsidiary for China trade. Each entity then has its own secretary, accounts, filings and, in Hong Kong, its audit, and the prices between them must be at arm’s length. Start with one unless the second has a job to do.

Which is easier for opening a bank account?

Neither comes with a guarantee or an official timeline. In both, the bank checks the owners, the source of funds, the activity and the company’s link to the place. A clear answer to “why here?” helps more than the jurisdiction itself. We prepare the application and introduce you to banks and business-account providers. The final decision is always the bank’s.

Does Innaltis push one jurisdiction?

No. We plan the same three packages in both places, priced in advance, so you can compare the cost yourself. When we recommend one, the written summary lists the alternatives we considered and why we set them aside, including not setting up in Asia yet.

How long does each take to set up?

In Hong Kong, an electronic incorporation is normally issued within an hour. In Singapore, most registrations are approved soon after payment; allow 1 to 3 business days once identity checks and documents are complete. In both, the bank account is usually the longest step. Innaltis opens incorporations in Q1 2027; until then we can plan the structure with you.

We already have a Hong Kong or Singapore company. Can you help?

Yes. A structuring consultation can review whether the existing company still fits, for example before a fundraising or a second entity. Once we open, we can also take over the secretarial work and filings of an existing company, with no incorporation fee.

Is this comparison tax advice?

No. It is general information about the two systems. Innaltis provides consulting and corporate services, not legal or tax advice. Where your situation needs a formal opinion, we name the question and refer you to a licensed adviser.

References
  1. IRAS, Corporate income tax rate, rebates and tax exemption schemes
  2. IRAS, Companies receiving foreign income
  3. IRAS, Do I need to register for GST?
  4. IRAS, Annual Report FY2025/26
  5. ACRA, Appointing company directors and other key officers
  6. ACRA, Deciding on share capital and share types
  7. ACRA, Audit exemptions
  8. ACRA, Registering a local company via Bizfile
  9. MOM, Employment Pass eligibility
  10. Hong Kong Inland Revenue Department, Profits tax
  11. Hong Kong Inland Revenue Department, Two-tiered profits tax rates, FAQ
  12. Hong Kong Inland Revenue Department, Foreign-sourced income exemption
  13. Hong Kong Inland Revenue Department, Comprehensive double taxation agreements
  14. Hong Kong Companies Registry, Directors and company secretary, FAQ
  15. Hong Kong Companies Registry, Incorporation of a local limited company, FAQ
  16. Hong Kong Companies Registry, Accounts and audit, FAQ
  17. InvestHK, Competitive two-tiered profits tax rate
  18. Hong Kong Immigration Department, General Employment Policy
  19. IRAS, Singapore–China tax agreement
  20. IRAS, Singapore–Philippines tax agreement

Information current as of 31 October 2026. It is general and not tax or legal advice.

Talk it through with us

Tell us who owns the company, where your customers are and when you want to start. We will tell you which jurisdiction fits, and what to check at home before you commit.

Discuss my company structure

We reply within one business day. No payment and no commitment: this request only starts a conversation. We never share your data, and you can ask us to delete it at any time.

Incorporation and ongoing compliance open in Q1 2027. Registering now reserves your founding-client terms. Nothing is filed and nothing is charged before then.

Opening Q1 2027 Discuss my company structure