Hong Kong taxes corporations at 8.25% on the first HK$2 million of assessable profits and 16.5% on the rest, and only on profits arising in or derived from Hong Kong. Singapore's corporate income tax rate is 17%, with partial exemptions on the first S$200,000 of chargeable income. Hong Kong doesn't require a resident director, while Singapore needs at least one director who meets its local residency rules. Hong Kong needs a Hong Kong-based company secretary from incorporation; Singapore gives you six months to appoint one. Every Hong Kong company must be audited each year, while a Singapore company must appoint an auditor unless it's exempt.
Side-by-side comparison
| Hong Kong | Singapore | |
|---|---|---|
| Corporate tax rate | 8.25% on the first HK$2 million of assessable profits, 16.5% on the rest (two-tiered rates; one entity per group of connected entities) | 17% |
| Standing exemptions | None beyond the two-tiered rates | Partial tax exemption: 75% of the first S$10,000 and 50% of the next S$190,000 of normal chargeable income. Qualifying new start-ups can instead claim 75% of the first S$100,000 and 50% of the next S$100,000 for their first 3 years of assessment. |
| Resident director | Not required. At least one director must be an individual. | At least one director who meets the local residency rules |
| Company secretary | Required from incorporation. An individual must ordinarily reside in Hong Kong; a corporate secretary needs a Hong Kong office. | Must be appointed within six months of registration. The post can't be empty for more than six months, or the director may face a fine of up to S$1,000. |
| Registered office | A Hong Kong address | A Singapore address, open to the public for at least 3 hours on each business day |
| Government fees to set up | HK$1,545 (electronic incorporation) plus HK$2,350 business registration fee and levy for a 1-year certificate | S$15 name application plus S$300 registration |
| Processing time | Certificates normally issued within 1 hour for an electronic application | Most registrations approved soon after payment; complex applications up to 15 working days; 14 to 60 days if other authorities must approve |
| Audit | Every company must be audited each year (dormant companies excepted) | Appoint an auditor within three months of registration unless exempt |
One-off relief for the current year
- Hong Kong: profits tax for the year of assessment 2025/26 is reduced by 100%, capped at HK$3,000 per case. The legislation was gazetted on 22 May 2026.
- Singapore: for YA 2026, IRAS lists an enhanced corporate income tax rebate of 50% of tax payable. Together with the CIT Rebate Cash Grant, the total benefit is capped at S$40,000.
Tax basis and GST
- Hong Kong charges profits tax on profits arising in or derived from Hong Kong. Since 2023, specified foreign-sourced passive income received by members of multinational groups can be taxable unless an exception applies.
- Singapore requires GST registration when taxable turnover exceeds S$1 million at the end of a calendar year, or is expected to exceed S$1 million in the next 12 months.
Which suits you?
If you want to run the company from overseas without a local director, Hong Kong's rules are simpler: you can be the only director and shareholder, with a Hong Kong company secretary and registered office. Singapore needs a director who meets its local residency rules from registration. Beyond that, compare the tax on your expected profit, where your customers and bank are, and the ongoing compliance cost. The figures above come from ACRA, IRAS, the Companies Registry and the IRD. We advise on Hong Kong only.
Related service: Hong Kong Company Formation (From HK$8,000). If Hong Kong is the right fit, we can set up and run your Hong Kong company, and the first consultation is free.
Frequently asked questions
Do I need a local director in Hong Kong?
No. Hong Kong has no resident director requirement; a private company needs at least one director who is an individual. It does need a company secretary based in Hong Kong.
Do I need a local director in Singapore?
Yes. ACRA requires at least one director who meets Singapore's local residency rules at registration.
Which has the lower tax?
It depends on your profit level and where the profits arise. Hong Kong's rate is 8.25% on the first HK$2 million and 16.5% above that; Singapore's is 17% with partial exemptions on the first S$200,000 of chargeable income.
Sources (official)
- IRD: Profits Tax
- IRD FAQ: Two-tiered profits tax rates regime
- Companies Registry FAQ: Incorporation of local companies
- Companies Registry: Major fees
- IRD: Business Registration Fee and Levy Table
- Companies Registry FAQ: Accounts and audit
- IRD: 2026-27 Budget – Tax Measures
- IRAS: Corporate income tax rate, rebates and tax exemption schemes
- ACRA: Registering a local company via Bizfile
- ACRA: Choosing company directors and other key officers
- ACRA: Reserving a business name via Bizfile
- ACRA: After registering a local company
This guide is general information, not professional advice. Government fees and deadlines can change, so check the official sources linked above.