Corporate Taxation - Singapore Vs Hong Kong

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Which is an ideal jurisdiction for company incorporation? Singapore
and Hong Kong have been dominant players in the Asian region, vying
for the position of "the best place to do business." But the crucial
questions are, which of these jurisdictions have an edge over the
other? Is incorporating a business easier in Singapore or in Hong
Kong?

Minimum Statutory Requirements:
Singapore: a local registered address (commercial or residential but
no PO Box), a local resident director, a local resident and qualified
company secretary, a shareholder (individual or corporate), minimum
paid up capital of SGD 1.00 (no authorized capital required)
Hong Kong: a local registered address (commercial or residential but
no PO Box), a director (local or foreigner), a local resident company
secretary (individual or corporate), a shareholder (individual or
corporate), minimum paid up capital of HKD 1.00 + authorized share
capital of HKD 10,000 represented by 10,000 ordinary shares of HKD
1.00 each

Incorporation Timeline:
Singapore: 1 working day
Hong Kong: 4-7 working days

Foreign Ownership:
Singapore & Hong Kong: 100% foreign ownership allowed

Corporate Taxes:
Singapore: Current corporate income tax rate - 18%. However, corporate
income tax rate effective 2010 - 17%. Note: The effective tax rate is
much lower - below 9% for profits up to SGD 300,000 and capped at 18%
for profits above SGD 300,000
Hong Kong: Current corporate income tax rate - 16.5%

Government Fees:

Fees for company incorporation with Companies Registrar:
Singapore: SGD 315
Hong Kong : HKD 1,720 + capital fee of HKD 1.00 for every or part of
HKD 1,000 of the nominal share capital (capped at HKD 30,000)

Fees for company registration with tax department:
Singapore: Nil
Hong Kong - HKD 2,450 (1 year registration certificate) or HKD 6,550
(3 year registration certificate)

Annual Filing Requirements:

Singapore:
Annual returns along with audited annual accounts must be filed with
Companies Registrar within one month of the Annual General Meeting.
Tax returns along with audited accounts must be filed with the Inland
Revenue Authority of Singapore by 31 October each year.
Note: Dormant companies (i.e no accounting transactions for the
financial year) and exempt private companies (not more than 20
shareholders and shares are not held by another company) with an
annual turnover of less than SGD 5 million are exempt from audit
requirements for both annual returns and tax returns. These companies
can file unaudited accounts.

Hong Kong:
Annual returns must be filed with the Companies Registry once in every
calendar year (except in the year of incorporation) within 42 days
after the anniversary of the company's date of incorporation. Private
limited companies are exempt from submitting accounts along with the
annual return.
Tax returns along with audited accounts must be filed with the Inland
Revenue Department by 31 April each year. The auditor must be a member
of the Hong Kong Institute of Certified Public Accountants and must
hold a practicing certificate. Dormant companies (i.e no accounting
transactions for the financial year) and small corporations (i.e total
gross income does not exceed HKD 500,000) are exempt from audit
requirements and can file unaudited accounts.

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