Startup Offshore Company in Hong Kong or Singapore?
- Thread starter reddior
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Easiest is almost always where you live. As soon as you go offshore, you're adding complications (tax residence, double tax payments/tax credits, regulations, bank account opening, hiring/access to talent).
Where are you based and why are you considering an offshore company? What does your company do?
If you plan to raise money from external investors (such as VC, seed, or angel investors), you should consider jurisdictions which are familiar and popular with such investors.
Where are you based and why are you considering an offshore company? What does your company do?
If you plan to raise money from external investors (such as VC, seed, or angel investors), you should consider jurisdictions which are familiar and popular with such investors.
Hello Sols,
Thank you for your feedback. I live in Philippines and my company do import and export. The reason why I plan to open an offshore company is to attract investors from the Philippines and other country in Asia. I am thinking to incorporate in Hong Kong or Singapore since it is the nearest country from us.
Thank you for your feedback. I live in Philippines and my company do import and export. The reason why I plan to open an offshore company is to attract investors from the Philippines and other country in Asia. I am thinking to incorporate in Hong Kong or Singapore since it is the nearest country from us.
In that case and considering the political climate in China/Hong Kong, Singapore is probably going to be the best option of the two. It's stable and has a bright future ahead of it, whereas Hong Kong is full of uncertainty at this point. Banking is difficult but as long as you do business in the region, you'll probably be all right.
Make sure you discuss the tax aspects of your business with a tax adviser or lawyer (both locally and in Singapore, to be safe). If you have significant presence in The Philippines, the company may still be considered Philippine for tax purposes.
Make sure you discuss the tax aspects of your business with a tax adviser or lawyer (both locally and in Singapore, to be safe). If you have significant presence in The Philippines, the company may still be considered Philippine for tax purposes.
I disagree. Singapore makes no sense If he is not willing to︁ do any business or move to Singapore, he will just add extra costs with none︂ of the benefits of HK. the only two points that I'm willing to give to︃ Singapore is the tax treaties that they have with other countries and their strong baking︄ system. But for his specific case, most manufactures/businesses have strong presence in HK, so it︅ will be easier for him to operate his business from HK than Singapore.
Those are absolutely valid points regarding manufacturing (especially if China is involved).
In the grand scheme of things, the costs of HK vs Singapore are negligible once a business is turning over a few hundred thousand. But if costs are a key consideration and budget is very tight, HK is the cheaper option.
But from a VC/fund raising and corporate reputability perspective, Singapore is far better today. Investors are spooked by what's going on in HK, whereas Singapore is thriving.
Depending on the exact details, a Singapore parent/holding with a HK trading company could also work out nicely.
In the grand scheme of things, the costs of HK vs Singapore are negligible once a business is turning over a few hundred thousand. But if costs are a key consideration and budget is very tight, HK is the cheaper option.
But from a VC/fund raising and corporate reputability perspective, Singapore is far better today. Investors are spooked by what's going on in HK, whereas Singapore is thriving.
Depending on the exact details, a Singapore parent/holding with a HK trading company could also work out nicely.
Yeah, but budget aside, HK is really really important if he wants to funnel his money from china to his country of residence. I said it in another thread that HK is china's capitalist bridge to the west.
Yep, for raising funds,︁ Singapore makes more sense, since VCs in both Singapore and the rest of the world︂ (mainly silicon valley) are very comfortable with Singapore companies.
I agree, and he can make use of great tax incentives like Singapore︄ Headquarter scheme.
"tax exemption OR concessionary tax rates of 5% or 10% on income︅ from headquarter activities for companies that commit to anchor substantive headquarter activities in Singapore to︆ manage, coordinate and control regional business operations. " source.
Yep, for raising funds,︁ Singapore makes more sense, since VCs in both Singapore and the rest of the world︂ (mainly silicon valley) are very comfortable with Singapore companies.
I agree, and he can make use of great tax incentives like Singapore︄ Headquarter scheme.
"tax exemption OR concessionary tax rates of 5% or 10% on income︅ from headquarter activities for companies that commit to anchor substantive headquarter activities in Singapore to︆ manage, coordinate and control regional business operations. " source.
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