Hong Kong vs Singapore company setup (2026): tax, costs and banking compared

Founders & Company Structures
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Hong Kong is simpler to run if you live elsewhere: no local director is needed, profits tax is 8.25% on the first HK$2 million and 16.5% above, and profits sourced outside Hong Kong can be untaxed. The trade-off is a compulsory annual audit for every company. Singapore is cheaper at the registry (S$315) but needs a director who is ordinarily resident in Singapore, which for most foreigners means paying a nominee. Its 17% headline rate falls sharply for small and new companies. Both are hard places for a non-resident to open a bank account.

Last checked: October 2026

In short:

  • Hong Kong: HK$1,545 to incorporate online plus HK$2,350 for a 1-year business registration certificate; one director (any nationality) and a Hong Kong-resident company secretary; audit is compulsory.
  • Singapore: S$15 name plus S$300 incorporation through ACRA; at least one locally resident director; small companies are usually audit-exempt; new companies get 75% off tax on the first S$100,000 for three years if they are Singapore tax resident.
  • Neither is a tax-free home for a nomad business. Hong Kong taxes profits from operations in Hong Kong, Singapore taxes companies on income from Singapore or remitted there, and both share bank data with your home country under CRS.

Side-by-side comparison

Hong Kong private limited Singapore Pte Ltd
Government setup fee HK$1,545 online (HK$1,720 paper) S$15 name + S$300 incorporation = S$315
Business registration HK$2,200 fee + HK$150 levy = HK$2,350 (1 year, from 1 April 2026) Included
Annual return fee HK$105 if filed within 42 days S$60
Local person required Company secretary; an individual secretary must ordinarily reside in HK At least one director ordinarily resident in Singapore
Headline corporate tax 8.25% on first HK$2m, 16.5% above 17%
Small-company relief Two-tier rate (one entity per connected group) Partial exemption; start-up exemption for first 3 years
Foreign income Territorial: offshore profits not taxed, subject to FSIE rules for MNE groups Taxed when received in Singapore, with some exemptions
Dividend withholding tax None None
Audit Compulsory for all except dormant companies Exempt if “small” (2 of 3 tests)
Sales tax None (no VAT or GST) GST 9%, registration above S$1m turnover

Hong Kong: forming the company

Registry and timing. The Companies Registry charges HK$1,545 to incorporate a company limited by shares electronically, or HK$1,720 on paper. Electronic applications are normally approved within 1 hour, paper ones within 4 working days. The business registration application goes in with the incorporation, but the fee and levy are separate.

Business registration. IRD’s fee table for certificates starting from 1 April 2026 lists:

Certificate Fee Levy Total
1 year HK$2,200 HK$150 HK$2,350
3 years HK$5,720 HK$450 HK$6,170

The 1-year levy was waived from 1 April 2024 to 31 March 2026, so older guides quote HK$2,200.

Officers. A private company needs at least one director who is a natural person, with no residency rule. It must also have a company secretary. If the secretary is an individual, they must ordinarily reside in Hong Kong. A sole director can’t also be the company secretary.

Audit. The Companies Registry is explicit: “Audit of financial statements is required for all companies, including companies falling within the reporting exemption, except dormant companies.”

Hong Kong tax: territorial, with limits

Two-tier profits tax. Since the 2018/19 year of assessment, corporations pay 8.25% on the first HK$2 million of assessable profits and 16.5% on the rest (IRD). Only one entity in a group of connected entities can claim the lower tier each year (PwC).

Territorial basis. IRD’s brief guide states that a resident “may therefore derive profits from abroad without being charged to tax”. The source test in IRD’s practice note DIPN 21 is: “One looks to see what the taxpayer has done to earn the profit in question and where he has done it.”

That is the basis for offshore claims: if the profit-earning work happens outside Hong Kong, the profit may be untaxed. The claim has to be made and supported with evidence. IRD can question it, and offshore status in Hong Kong does not stop the country you live in from taxing the profit.

FSIE regime. Since 1 January 2023, foreign-sourced interest, dividends, IP income and equity disposal gains received in Hong Kong by members of multinational enterprise (MNE) groups are taxable, unless an exception applies. From 1 January 2024 this was widened to disposal gains on other assets. The exceptions are economic substance in Hong Kong, the nexus rule for IP income, and a participation exemption for holdings of at least 5% held for at least 12 months, subject to tax conditions (IRD). IRD says a standalone company that is not part of an MNE group falls outside FSIE. Once you hold subsidiaries abroad, it starts to matter.

Dividends. Hong Kong has no withholding tax on dividends or interest (PwC).

Singapore: forming the company

Registry fees. ACRA charges S$15 for a name application and S$300 to register the company, S$315 in total. Annual returns cost S$60 (ACRA fee page, updated 29 January 2026). Most registrations are approved shortly after payment. Complex ones can take up to 15 working days, and referrals to other agencies 14 to 60 days.

The local director rule. Foreigners must register through a corporate service provider (CSP). At least one director must be ordinarily resident in Singapore. ACRA accepts citizens, permanent residents, and holders of an Employment Pass, Personalised Employment Pass or ONE Pass. An EntrePass is an option for venture-backed or innovative founders. Pass holders need a Letter of Consent from the Ministry of Manpower before taking on the role.

The nominee director issue. If you don’t relocate, you pay someone to be your resident director. Since 9 June 2025, under the Corporate Service Providers Act 2024, anyone acting as a nominee director by way of business must be arranged through a registered CSP that has assessed them as fit and proper (ACRA). Nominee arrangements must be disclosed at incorporation. ACRA says directors can’t be “sleeping”, so a nominee carries real liability and prices that in.

Other requirements. You need a company secretary within 6 months, and a registered office open to the public at least 3 hours each business day.

Singapore tax: 17% that rarely means 17%

Partial tax exemption on the 17% rate (IRAS, PwC): 75% of the first S$10,000 and 50% of the next S$190,000 of chargeable income are exempt, up to S$102,500 of income exempt.

Start-up tax exemption for the first three years of assessment (IRAS Form C-S notes, YA 2026): 75% of the first S$100,000 and 50% of the next S$100,000 are exempt. The company must be incorporated in Singapore and tax resident there. It must have no more than 20 shareholders, all individuals or at least one individual holding 10% or more. Investment holding and property development companies are excluded.

Residence is the catch. A company is Singapore tax resident where its “central management and control” is exercised, usually where the directors meet and decide (PwC). If the real decisions are made by you elsewhere, the company may not be tax resident, and may lose the start-up exemption.

YA 2026 rebate. A 50% corporate tax rebate, with a minimum S$2,000 cash grant for active companies that meet a local employee condition. The rebate and grant together are capped at S$40,000 (IRAS).

Worked example, new resident company, S$200,000 chargeable income, YA 2026: the exempt amount is S$75,000 + S$50,000 = S$125,000. Tax is 17% of S$75,000, or S$12,750. Half of that is rebated, leaving about S$6,375, or roughly 3.2% of profit.

Foreign income. Foreign income is taxed when it is received in Singapore. Foreign dividends, branch profits and service fees can be exempt if conditions are met (PwC).

Dividends. Singapore uses a one-tier system: dividends from a Singapore-resident company are tax-exempt for shareholders. There is no withholding tax on dividends (PwC).

GST. Registration is required if taxable supplies exceed S$1 million in 12 months. The rate is 9% (PwC).

Audit. A private company is audit-exempt if it meets at least two of three tests: revenue of S$10 million or less, total assets of S$10 million or less, and 50 or fewer employees (ACRA).

Banking: hard in both

Banks in both cities want to know where you live, who your clients are and why the company is there. A non-resident with no local staff, office or clients is the hardest profile, and rejections without explanation are common in member reports (not an official statistic). See Offshore bank account (2026): what’s legal, costs, where to open for back-up options.

Many non-resident founders start with a payment platform. None of these is a bank, by their own description:

Provider Licence (own disclosure) Notes
Airwallex Partners with licensed institutions; operates in 20+ markets including HK and Singapore Multi-currency business account
Aspire Multi-currency accounts provided by AFT HK Limited, a Hong Kong Money Service Operator Serves Singapore and Hong Kong businesses, among others
Statrys Hong Kong Money Service Operator; Singapore Major Payment Institution licensed by MAS Focus on HK and Singapore companies

Platforms close accounts too, so keep a second one elsewhere.

Substance and CRS

Hong Kong began its first exchanges under the Common Reporting Standard by the end of 2018. Singapore’s CRS rules took effect on 1 January 2017. Financial institutions report accounts of reportable residents and, for passive companies, their controlling persons (IRD). Your home country will see the account.

Neither company protects you from tax where you live. If you’re tax resident in a country with CFC rules or a place-of-management test, that country can tax the company’s profit whether it is “offshore” in Hong Kong or partly exempt in Singapore. For the residency side see Tax residency explained: why the 183-day rule is a myth for most countries, and for territorial systems more broadly see Territorial tax countries compared: where foreign income isn’t taxed.

Which one?

Hong Kong suits founders who will not live in either place, want low fixed government fees and no local director, and can document that their operations are genuinely outside Hong Kong. Accept the yearly audit.

Singapore suits founders who will relocate on an Employment Pass or EntrePass, or who need the credibility of a Singapore company with investors and clients in Southeast Asia. Start-up exemptions make the effective rate low if the company is genuinely run from Singapore.

Neither suits a nomad wanting zero tax with no presence. See Where to incorporate as a digital nomad: US LLC, UK, Estonia, UAE and Holding company for founders (2026): how it works and where to set one up.

Related guides: Where to incorporate as a digital nomad: US LLC, UK, Estonia, UAE · Holding company for founders (2026): how it works and where to set one up · Territorial tax countries compared: where foreign income isn’t taxed · Offshore bank account (2026): what’s legal, costs, where to open · Tax residency explained: why the 183-day rule is a myth for most countries

Quick answers

Q: Is it cheaper to set up a company in Hong Kong or Singapore?
At the registry, Singapore is cheaper: S$315 versus HK$1,545 plus HK$2,350 for business registration in Hong Kong. Running costs reverse that. Hong Kong needs an audit every year, and Singapore needs a resident director, which for non-residents means paying a nominee through a registered corporate service provider.

Q: Can a foreigner own 100% of a Hong Kong or Singapore company?
Yes, in both. Hong Kong needs one director of any nationality plus a company secretary, who must ordinarily live in Hong Kong if an individual. Singapore needs at least one director ordinarily resident there, such as a citizen, permanent resident or Employment Pass holder, and foreigners must register through a corporate service provider.

Q: Is Hong Kong offshore income really tax-free?
Only if the profit is genuinely sourced outside Hong Kong, judged by what you did to earn it and where. You must claim and support it, and IRD may challenge it. Members of multinational groups face FSIE rules on foreign dividends, interest, IP income and disposal gains. Your country of residence may still tax it.

Sources

This is general information from the Nomad Forums team, not legal, tax or financial advice. Rules change; check the official source or a qualified adviser before acting.

Over to you: If you run a Hong Kong or Singapore company from abroad, what do you pay each year for the audit, secretary or nominee director? And which bank or platform actually opened your account?

Best country to incorporate as a digital nomad (2026): 15 options compared