Why are investors particularly interested in establishing companies in Hong Kong and Singapore?

It takes about 03 - 10 hours to fly from Vietnam to Hong Kong (depending on departure location).

Note: Vietnamese citizens need a visa to enter Hong Kong.

It takes about 02 - 04 hours to fly from Vietnam to Singapore (depending on departure location).

Note: Vietnamese citizens do not need a visa to enter Singapore.

• Hong Kong is one of the most dynamic economies in the world, known for its free trade, open markets, and business-friendly environment.
• Hong Kong International Airport (HKIA) is among the busiest in the world, with over 90 airlines flying to more than 150 destinations, including 40 cities in China.
• Hong Kong is also a major hub for maritime activities in Southern China and one of the world’s biggest ports, handling large volumes of goods and passengers with advanced facilities.

• Singapore has a free economy, very high growth rate and is known as the Asian dragon.
• Singapore is located in Asia with a very favorable geographical and commercial location. However, Singapore's territory is not large, so the main economic activities are trade and services (accounting for 40% of national income).

The legal system is transparent and clear, based on English Common Law.

With the establishment of the International Arbitration Centre in 1985, Hong Kong has become a major arbitration centre in Asia. Accordingly, dispute resolution by arbitration is now a popular method in Hong Kong.

Singapore's legal system is based on English Common Law.

Singapore's legal system is clear and well-defined. As a result, Singapore is the only Asian country in the top 10 of the World Justice Project's Rule of Law Index 2016.

When choosing to establish a company in Hong Kong, businesses can consider making appropriate decisions based on the following 04 types:

• Limited liability company.
• Private enterprise.
• Joint venture.
• Foreign company office.

In particular, the private limited company is the type chosen by most investors, because the owner's liability will be limited to the company's assets, and their personal assets will be protected from the company's obligations and responsibilities.

When businesses want to expand their business operations in Singapore, they can choose from the following 03 types of businesses:

• Limited liability company.
• Private enterprise.
• Joint venture.

Among them, establishing a subsidiary in the form of a private limited liability company (PTE. LTD.) is the type chosen by many businesses when investing in the Singapore market. This type is considered flexible, has the ability to expand in scale and make the most of the government's incentives for businesses.

Fast, simple.

Special: Your business does not need to be present in Singapore during the company establishment process.

In addition, if a foreigner can own his/her own Hong Kong company, the Singapore company needs to have 1 nominee director who is a Singapore citizen to manage the company in Singapore.

To maintain an effective foreign company, both Hong Kong and Singapore companies need to prepare financial statements - audited on a fiscal yearly basis. Refer to the following articles to know what types of reports Singapore/Hong Kong companies need to submit and how to prepare financial statements for each type of company:

• Types of annual reports Singapore companies must file
• Summary of types of reports that Hong Kong companies need to submit annually
• Accounting Standards in Hong Kong
• Singapore corporate financial reporting services
• Auditing services for Hong Kong companies

1. For companies doing business in Hong Kong 

1.1. For public companies (corporations)

• 2,000,000 HKD First profit, business pays tax 8.25%.
• From 2,000,001 HKD profit onwards, businesses pay 16,5% tax

1.2 For private companies (Unincorporated businesses)

• 2,000,000 HKD First profit, business pays tax 7.5%.
• From 2,000,001 HKD From profit onwards, the business pays 15% tax.

Special: Hong Kong does not levy capital gains tax, shareholder dividends tax and goods and services tax (VAT).

2. For companies doing business outside Hong Kong, they will enjoy a preferential tax rate of 0%.

Detailed information about the tax system in Hong Kong has been highlighted by GLA through the following articles, businesses can refer to more:

• Tax Rates and Income Tax System in Hong Kong
• Overview of the corporate tax system in Hong Kong

• 100,000 SGD First profit, business pays tax 4,25%.
• 100,000 SGD Next profit, the company pays 8,5% tax.
• From SGD 200,001 profit, business tax 17%.

The tax system in Singapore will change periodically and this requires businesses to update promptly to optimize profits. Therefore, update your tax knowledge now with outstanding contents such as:

• Corporate income tax in Singapore: A complete guide (XNUMX)

In Singapore, personal income tax is progressive, up to 22% of taxable income.

In particular: dividends distributed to shareholders (after completing corporate income tax) will not be subject to personal income tax.

Usually, common, normal, only 14 - 22 working days to own a corporate account in Hong Kong.

However, currently, opening a bank account in Hong Kong - especially for a business with foreign directors/shareholders - is not easy. Because:

Account holders need to be present in person at a Hong Kong bank to complete the account opening procedure. However, traveling from Vietnam to Hong Kong is quite difficult because Vietnamese citizens need a visa to go to Hong Kong.

Special: In case your business cannot fly to Hong Kong to open an account or the account opening is unsuccessful, GLA will advise and support your business with the following two options: 

• Open a bank account in Singapore
• Open an account online in Hong Kong (no need to fly to Hong Kong)

Opening a bank account in Singapore for a Hong Kong company is a difficult step, requiring the consultant to be experienced, have a good understanding of procedures in Singapore and have a deep understanding of business operations to ensure that the documents and certificates are provided appropriately and in compliance with regulations.

Note: The time to open a bank account in Singapore for a Hong Kong company will be longer than for a Singapore company.

Currently, GLA is committed to the success rate in open bank account in singapore for Hong Kong companies up to 98%. To do this, GLA will accompany your business, carefully review information before receiving documents and inform customers in advance about the success rate.

If a Hong Kong company cannot open a bank account in Singapore, GLA will advise on opening a reputable online payment account in Hong Kong or the US, suitable for the business and investment problems of the enterprise.

Asian financial center.

Only 14 - 22 working days to own a business account in Singapore.

Account holders must be physically present at a Singapore bank to complete the process.