Many Hong Kong businesses have currently turned to Singapore as the next best location to continue their business operations. Setting up a company in Singapore for foreigners is of no hassle if you’re set with a step by step plan of the incorporation process. So, we have collated a small guide for your ease to set up your Hong Kong business in Singapore.
Have burning questions about Singapore company incorporation on your mind? Don’t worry, we have prepared a list of Q&As to help you navigate easily!
- Why choose Singapore?
- Types of Singapore Business Entities?
- Duration of the registration process
- Is being physically present required?
- Relocating to Singapore
- What is the tax policy in Singapore?
- Company set up requirements
1. Why should I choose Singapore?
In Hong Kong, there might be a hassle in incorporating a company because of the need to sign documents in person. However, in Singapore, all documents can be collated and signed online, therefore, making the process quicker and easier.
Additionally, Singapore offers the following, for foreign companies:
- 100% of the company can be owned by foreigners.
- There is no tax on capital gain, and taxes are low
- Due to the process being online, it takes just an hour to complete the registration process.
2. What business structures can I choose from in Singapore?
The four main types of business structures that are available in Singapore are:
- Sole Proprietorship or Partnership
- Private Limited Company (Pte Ltd)
- Limited Liability Partnership (LLP)
- Company Limited by Guarantee
Naturally, a private limited company is the most common business structure opted by foreigners when setting up a company in Singapore.
Our advice to you would be to answer these few questions before determining the type of business structure you want:
- Is it easy to end the business entity?
- How much capital investment is required?
- What are the pros and cons of all the business structures?
- Will I be okay to be personally liable?
- How many owners will be a part of the business?
- What is the tax policy under different entities?
3. How long does the registration process take?
If all the required documents are ready, then the application process will take at most one day for processing.
4. Do I need to be physically present in Singapore to start a company?
No, you do not need to be physically present in Singapore. You can be anywhere in the world and run your business from there as well.
5. If I start a business in Singapore, can I move there?
Yes! All you need to do is, pay yourself a salary, and then apply for an Employment Pass (EP). Your salary must be above SGD 3,900 or if you are planning to bring your family, it must be at least SGD 6,000- SGD 8,000. They will need Dependant Passes (DP). For an Employment Pass, it will take around 6 months for an outcome.
6. What is the tax policy in Singapore? And do I still need to pay any taxes in Hong Kong?
In Singapore, a company is taxed on its preceding year’s income. The current corporate tax rate is 17%, regardless of the company being local or foreign.
Additionally, income that is obtained in Singapore, and received from outside the country are taxable. However, take note that you do not need to pay taxes in Hong Kong for the income gained in Singapore. All income gained in Hong Kong will be taxed by the Hong Kong government. While all income gained in Singapore will be taxed by the Singapore government.
7. What is needed to start a company in Singapore from Hong Kong?
A private limited company is the most popular entity choice by both foreigners and locals when starting a company.
In order to *start a private limited company in Singapore you will need:
- Minimum of 1 shareholder
- Minimum of SGD 1 paid-up capital
- Minimum of 1 Resident Director
- Local corporate secretary
- A registered Singapore address
Upon successful registration, you will receive an Incorporation Email from the ACRA, which will serve as the Incorporation Certificate.
A company name is also essential when starting a company. Conduct a Singapore Company Name Check to see if your desired company name is available.
*Please note that you will not be able to register your company on your own. You will need an authorised filing agent or professional corporate service provider to help you set up your company in Singapore.
How can Rikvin help?
As the leading corporate service provider in Singapore, Rikvin has helped set up thousands of companies around the globe and can help you expand or incorporate your Hong Kong company in Singapore seamlessly.
FAQ
- A fee to ACRA of SGD 315 ( Company name registration fee of SGD 15 and company registration fee of SGD 300) is required when incorporating a company.
- Anyone can set up a company in Singapore, as long as you are above the age of 18. You are also eligible to have 100% ownership of the company.*As foreigners, take note that you will need to engage a professional corporate service provider to help you set up your company in Singapore.
- Yes, being ranked as the 2nd best country in the world for ease of doing business, it is relevantly easy to start a company in Singapore. In fact, you can set up a company in Singapore within just 1 hour if all the required documents are in place.
- A private limited company is the most common business entity chosen by foreigners. The requirements for a private limited company are:
- A company name
- Minimum of 1 shareholder
- Minimum of SGD 1 paid-up capital
- Minimum of 1 Resident Director
- Local corporate secretary
- A registered Singapore address
Get your company registered in 1 hour today.
We have helped many Hong Kong companies incorporate in Singapore swiftly.
Rikvin’s content team includes in-house and freelance writers across the globe who contribute informative and trending articles to guide aspiring entrepreneurs in taking their business to the next level in Asia.
