Both Hong Kong and Singapore will let a foreigner own 100% of a company, and neither requires you to move there. What differs is what each registry demands of the people running the company: Hong Kong needs a locally resident company secretary, Singapore needs a locally resident secretary and a locally resident director. That one rule changes the shape of the setup, the ongoing relationship with your corporate services firm, and often the bank.
This guide works through setting up in either jurisdiction as a non-resident founder. For the wider head to head on tax, banking, political stability and market reach, read Hong Kong vs Singapore compared.
Side-by-Side Overview
| Factor | Hong Kong | Singapore |
|---|---|---|
| Corporate tax rate | 8.25% on first HKD 2M; 16.5% thereafter | 17% (with partial exemptions reducing effective rate) |
| Tax system | Territorial (only HK-sourced income taxed) | Territorial with some exceptions |
| Capital gains tax | None | None |
| Dividend withholding tax | None | None |
| GST/VAT | None | 9% |
| Company type | Private Limited Company | Private Limited Company (Pte Ltd) |
| Minimum directors | 1 (any nationality) | 1 (at least 1 must be Singapore resident) |
| Secretary required | Yes (HK resident) | Yes (Singapore resident) |
| Minimum share capital | HKD 1 | SGD 1 |
| Annual audit required | Yes (for most companies) | Yes (unless qualifying for exemption) |
| Treaty network | 45+ agreements | 90+ agreements |
| Formation time | 1 to 2 weeks, or 2 to 5 working days off the shelf | 1 to 2 weeks, or 2 to 5 working days off the shelf |
Tax Comparison
Hong Kong
Hong Kong operates on a territorial tax system, meaning only income sourced from Hong Kong is subject to tax. Profits earned outside Hong Kong are generally exempt, regardless of whether the money is remitted to Hong Kong. The two-tier profits tax system offers 8.25% on the first HKD 2 million of assessable profits and 16.5% on the remainder. Hong Kong has no VAT, no sales tax, and no capital gains tax.
Singapore
Singapore also uses a territorial tax system, but with some differences. Foreign-sourced income is generally not taxed unless it is remitted to Singapore, and even then, exemptions may apply. The headline corporate tax rate is 17%, but new companies benefit from significant partial exemptions that can reduce the effective rate to well below 10% on the first SGD 200,000 of chargeable income. Singapore does levy GST at 9% on goods and services supplied in Singapore.
Banking and Financial Services
Hong Kong
Hong Kong is one of the world’s leading financial centers, with a deep and diverse banking sector. HSBC, Standard Chartered, Bank of China, and Hang Seng Bank all have major presences. Corporate banking is well-developed, with multi-currency accounts, trade finance, and treasury services widely available. However, account opening has become more selective in recent years, particularly for companies without a physical presence or local operations.
Singapore
Singapore’s banking sector is equally world-class, with DBS, OCBC, UOB, and major international banks offering comprehensive corporate services. Singapore has been investing heavily in fintech, making digital banking and payment services particularly advanced. Account opening for Singapore companies is generally straightforward, though banks still require standard KYC documentation and may request an in-person meeting.
Ease of Setup for Foreign Investors
Hong Kong
Hong Kong is generally easier for foreign investors in one important respect: there is no requirement for a local resident director. Any individual of any nationality can serve as a director without holding a Hong Kong visa or residency status. The company secretary must be a Hong Kong resident, but this can easily be provided by a local corporate services firm.
Singapore
Singapore requires at least one director who is a Singapore resident (citizen, permanent resident, or employment pass holder). For foreign investors without a Singapore-based individual, a nominee resident director is appointed through the corporate services firm. This is a standing governance arrangement rather than a one off filing: the nominee carries statutory duties, will want to understand the business before accepting the appointment, and is renewed each year alongside the secretary and registered office.
Strategic Considerations
Choose Hong Kong If:
- Your business primarily serves the Greater China market or requires close ties to mainland China.
- You want to avoid GST/VAT entirely.
- Your profits are primarily sourced outside Hong Kong, allowing you to benefit from the territorial tax exemption.
- You do not want to appoint a local resident director.
- You need a Chinese-speaking business environment for your operations.
Choose Singapore If:
- Your business targets Southeast Asian (ASEAN) markets.
- You value a broader double taxation treaty network (90+ countries vs 45+).
- You want to benefit from Singapore’s startup tax exemptions.
- You plan to apply for personal residency through your business.
- You prefer a more neutral geopolitical environment for your corporate structure.
What Drives the Cost of a Hong Kong or Singapore Company
Incorporation itself is the smallest part of what either jurisdiction costs over a few years. The running structure is what matters, and it is made of the same handful of items in both places.
| Cost driver | Hong Kong | Singapore |
|---|---|---|
| Company secretary | Required, must be ordinarily resident in Hong Kong | Required, must be ordinarily resident in Singapore |
| Registered office | Required, must be a Hong Kong address | Required, must be a Singapore address |
| Resident director | Not required | Required, so a nominee is needed if you have nobody local |
| Annual audit | Required for most companies, by a practising accountant | Required unless the company qualifies for the small company exemption |
| Annual renewal filings | Annual return plus business registration renewal | Annual return plus the annual general meeting cycle |
| Consumption tax compliance | None, Hong Kong has no GST or VAT | GST registration and quarterly filing once turnover passes the statutory threshold |
| Banking | Onboarding effort has risen for companies with no local presence | Onboarding is generally smoother, and the resident director helps |
Two conclusions follow. Singapore carries one structural item Hong Kong does not, the resident director, and Hong Kong carries one Singapore does not, a mandatory audit for nearly every company with no small company exemption to fall back on. Where a quote for either jurisdiction looks unusually light, check which of the rows above it actually includes before comparing it with anything else.
Setting Up in Hong Kong or Singapore as a Foreigner: What You Can Do Remotely
Incorporation is remote in both jurisdictions. Both registries file electronically, both accept documents signed abroad, and neither asks a foreign shareholder or director to appear in person to register the company. What you supply is identification and proof of address for every officer and beneficial owner, a description of the intended activity, the share structure, and the registered office and secretary appointments, which your corporate services firm provides locally.
The bank account is the part that is not reliably remote. Several Hong Kong and Singapore banks still want a director to attend a branch, and some will decline an application from a company with no operating footprint in the region regardless of the paperwork. The digital banks and licensed payment institutions in both markets onboard remotely and are frequently the practical first account. Decide the banking route before you decide the registry, because it is the constraint that most often forces the choice.
The full step by step process and document list for each jurisdiction sits on the country pages: company formation in Hong Kong, company formation in Singapore, bank accounts for Hong Kong companies and bank accounts for Singapore companies. Where the entity has to exist before the process finishes, both registries can be served from stock: ready made Hong Kong companies and ready made Singapore companies.
Frequently Asked Questions
Can a foreigner open a company in Hong Kong?
Yes. A non-resident of any nationality can own all the shares and be the sole director of a Hong Kong Limited, with no visa or residency status required. The one local requirement is a company secretary who is ordinarily resident in Hong Kong, together with a Hong Kong registered office, and both are supplied by your corporate services firm. Incorporation does not require you to travel.
Can a foreigner open a company in Singapore?
Yes, with one condition. A non-resident can own all the shares of a Singapore Pte Ltd, but at least one director must be ordinarily resident in Singapore, meaning a citizen, a permanent resident or an employment pass holder. Founders without someone local appoint a nominee resident director through their corporate services firm. A Singapore resident company secretary and registered office are also required.
Do I need to travel to Hong Kong or Singapore to register a company?
No. Both registries file electronically and accept documents executed abroad, so the company itself can be registered without you leaving home. Banking is the exception. Some traditional banks in both jurisdictions still require a director to attend in person, while digital banks and licensed payment institutions generally onboard remotely. Settle the banking route before you commit to a jurisdiction.
Which is easier to set up as a non-resident, Hong Kong or Singapore?
Hong Kong is simpler on paper because no resident director is needed, so the officer structure is just you plus a local secretary. Singapore adds a nominee resident director, which is more to arrange and an ongoing governance relationship. Singapore is usually easier at the bank, however, and for many founders that outweighs the extra appointment.
For a non-resident founder the choice usually comes down to one trade off: Hong Kong asks less of you at the registry, Singapore asks less of you at the bank. Explore our Hong Kong company options and Singapore company options, read the full Hong Kong vs Singapore comparison if you are weighing the two jurisdictions on tax and market reach, or contact ShelfCompanies24 to work through the setup for your own structure.
