Singapore vs Hong Kong for a New Company in 2026: Set-Up Cost, Tax, Banking and Annual Compliance Compared

Short answer: Singapore needs a locally resident director, taxes profits at 17% with large exemptions for new companies, and lets small companies skip the audit. Hong Kong allows foreign-only directors and taxes the first HK$2 million of profits at 8.25%, but non-dormant companies file audited accounts every year. The better choice follows where the business actually operates.

Founders comparing Singapore vs Hong Kong for a new operating company usually start with the headline tax rate, then find the bigger differences lie in board rules, audit, yearly filings and banking. This guide compares both for a new private company limited by shares in 2026, using figures from ACRA (Singapore’s Accounting and Corporate Regulatory Authority), IRAS (the Inland Revenue Authority of Singapore), the Hong Kong Companies Registry and the Hong Kong Inland Revenue Department (IRD).

Raffles Corporate Services works with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice. This article is general information only and is not legal advice.

Singapore vs Hong Kong: how do the set-up rules compare?

Both places let you incorporate a private company online with a single shareholder, but Singapore insists on a locally resident director while Hong Kong does not. Hong Kong instead requires a company secretary who lives in Hong Kong, or a corporate secretary based there.

In Singapore the process runs in this order:

1. Reserve the company name on Bizfile (S$15, non-refundable).
2. Prepare the constitution, director consents and shareholder details, and complete the corporate service provider’s customer due diligence checks.
3. Register the company on Bizfile (S$300).
4. Appoint a company secretary within six months, open a bank account and set up the statutory registers.

If no founder lives in Singapore, see our guide to registering a Singapore company as a foreigner, which covers options including a nominee director service.

What does it cost to set up and run each company in the first year?

Government fees are modest in both places, but Hong Kong adds a renewable business registration charge and a yearly audit, while a small Singapore company can skip the audit. Hong Kong figures are from the Companies Registry fee schedule.

For a Singapore company, our published prices are S$450 for the Incorporation of Company Package, S$600 a year for the Annual Corporate Package (which includes the S$60 ACRA annual return fee and a named secretary) and S$200 a year for the Registered Office Package. Nominee director services start from S$2,000 a year with a S$3,000 refundable deposit. Compliance check fees of S$80 to S$400 apply in some cases. Full details are on our packages page, and the free tools page helps you estimate running costs.

Which has the lower corporate tax for a new company?

On modest profits, Singapore often costs less in the first three years once the start-up exemption is applied, even though its headline rate of 17% is higher. Hong Kong’s two-tiered system taxes the first HK$2 million of assessable profits at 8.25% and the rest at 16.5%.

A worked example shows how the Singapore start-up exemption works. A qualifying new company with chargeable income of S$200,000 in one of its first three YAs has S$125,000 exempted (S$75,000 plus S$50,000). Tax on the remaining S$75,000 at 17% is S$12,750, an effective rate of about 6.4% on S$200,000. Our start-up tax exemption guide explains which companies qualify. In Hong Kong, assessable profits of HK$2,000,000 bear tax of HK$165,000 at 8.25%.

Timing matters for the Singapore rebate you may have read about. IRAS has enhanced the YA 2026 Corporate Income Tax (CIT) Rebate to 50% of tax payable, with a S$2,000 cash grant for eligible companies and total benefits capped at S$40,000. Singapore taxes on a preceding year basis, so YA 2026 covers income of the financial year ending in 2025. A company incorporated in 2026 will usually have its first YA in 2027 or later, so do not budget on the YA 2026 rebate. Sources: the IRAS corporate tax rates page and the IRD profits tax page.

How is foreign income taxed in Singapore and Hong Kong?

Hong Kong taxes only profits arising in or derived from Hong Kong, so foreign-sourced trading profits are generally outside the charge. Singapore generally taxes foreign income when it is received in Singapore, but exempts specified foreign income under section 13(8) of the Income Tax Act 1947 if conditions are met.

• Hong Kong’s territorial basis. The IRD makes no distinction between residents and non-residents, so an offshore claim needs evidence of where the profits were earned.
• Hong Kong’s FSIE regime. Under the foreign-sourced income exemption (FSIE) regime, specified foreign-sourced income (interest, dividends, IP income and disposal gains) received in Hong Kong by a member of a multinational enterprise (MNE) group is taxable unless an exception, such as economic substance, is met. Only MNE entities are in scope.
• Singapore’s remittance basis. Foreign income is taxable on accrual where it arises from a trade or business carried on in Singapore.
• Singapore’s s 13(8) exemption. Foreign-sourced dividends, foreign branch profits and foreign-sourced service income received by a Singapore tax resident company are exempt if the income was subject to tax abroad, the foreign jurisdiction’s highest corporate tax rate is at least 15% when the income is received, and the Comptroller is satisfied the exemption benefits the company.

Does a new company need an audit in Singapore or Hong Kong?

A new Singapore private company that qualifies as a small company does not need an audit. A Hong Kong company, other than a dormant one, must submit audited financial statements with its Profits Tax Return.

Under ACRA’s small company concept, a private company is exempt from audit if it meets at least two of three criteria for the immediate past two consecutive financial years: total annual revenue of S$10 million or less, total assets of S$10 million or less, and 50 full-time employees or fewer. A company less than two years old qualifies if it meets the criteria in the current financial year.

The IRD’s return guidance says corporations submit audited financial statements in all cases except dormant companies and two categories that do not apply to a Hong Kong-incorporated trading company. Budget for an auditor from the first year.

What are the annual filing deadlines in each place?

Singapore’s deadlines run from the financial year end, while Hong Kong’s annual return runs from the anniversary of incorporation. Both require a yearly company filing and a yearly tax return.

Singapore’s annual return changed on 20 October 2026, when the second phase of the Corporate and Accounting Laws (Amendment) Act 2025 commenced. Filers now confirm that the officer and member particulars ACRA holds are accurate, and say whether anyone performs the CEO role. Our note on annual returns filed from 20 October 2026 sets out the check.

Is it easier to open a corporate bank account in Singapore or Hong Kong?

Neither place guarantees an account; each bank’s customer due diligence decides. In our experience, applications move fastest when the company shows a real reason to bank there: customers, suppliers, staff or management in that location.

Applications stall when the ownership chain is complex, the business has no local footprint, or expected transactions do not match the stated activity. Our guide to opening a corporate bank account in Singapore sets out what Singapore banks check.

Singapore or Hong Kong in 2026: which suits your business?

Choose the place where the business will actually be run, sell and hire, because tax residence, source of profits and bank approval follow real activity. These scenarios are a starting point, not tax advice.

• A start-up building a team in Southeast Asia. Singapore usually fits: the start-up tax exemption and audit exemption keep early costs low, and a founder who relocates can fill the resident director seat.
• A trading business selling into mainland China, run by founders based in Hong Kong. Hong Kong often fits: no resident director is needed, and the 8.25% rate applies to the first HK$2 million of assessable profits. Budget for the yearly audit.
• A family office. The question is different; see our comparison of Singapore, Hong Kong, Dubai (DIFC) and Switzerland for family offices.

Frequently asked questions

Can a foreigner be the only director of a Singapore company?

No. Section 145(1) of the Companies Act 1967 requires at least one director who is ordinarily resident in Singapore. A foreign founder can serve alongside a resident director.

Can a foreigner be the only director of a Hong Kong company?

Yes. The Companies Registry confirms that a non-Hong Kong resident can be a director, and section 457(2) of the Companies Ordinance only requires at least one director to be a natural person. The company secretary must still be resident in, or based in, Hong Kong, and a sole director cannot also act as secretary.

Is Hong Kong’s 8.25% rate available on all profits?

No. The 8.25% rate applies only to the first HK$2,000,000 of assessable profits of a corporation, and profits above that are taxed at 16.5%. Where companies are connected, only one of them can elect the two-tiered rates.

Will a company set up in 2026 get the Singapore YA 2026 CIT Rebate?

Usually not. YA 2026 taxes income of the financial year ending in 2025, so a company incorporated in 2026 normally starts at YA 2027 or later. IRAS describes the 50% rebate and S$2,000 cash grant as YA 2026 measures.

Last reviewed: 23 October 2026. The Editorial Team, Raffles Corporate Services.