by Nestor Garcia, Head of Global Company Creation at Statrys
When expanding internationally, one of the first steps for small business owners is deciding where to incorporate. Hong Kong, Singapore, and Dubai are popular options, each with its own strengths and challenges. This article will help you understand the differences between these three business hubs, focusing on factors like ease of incorporation, regulations, and taxation.
By comparing these regions, you’ll gain a clearer idea of which location suits your business goals best.
Incorporation: What to Expect in Each City
The process of setting up a business varies across these three locations. Hong Kong allows for quick incorporation (3–5 days) with no capital requirements, making it ideal for companies wanting to start swiftly. It also has flexible foreign ownership laws, making it a straightforward choice for international businesses.
Singapore offers a seamless online registration system, requiring a local director and minimal capital. It’s known for efficiency, with most businesses set up within a day. Singapore’s clear and transparent procedures support businesses focused on tech and innovation.
In Dubai, incorporation timelines differ depending on whether you’re setting up in the mainland or a free zone. Free zones offer the most advantages, such as 100% foreign ownership and full profit repatriation, although mainland setups may require a local sponsor. While Dubai’s process can take a bit longer (3–14 days), it provides strategic access to the Middle Eastern market.
Takeaway: If you need fast, easy incorporation, Hong Kong or Singapore might be better fits. If complete ownership and tax-free operations are more important, Dubai’s free zones are worth considering.
Navigating Regulations and Taxes
Regulatory landscapes can shape your decision. Hong Kong and Singapore are recognized for their transparent regulations, which make compliance straightforward. Hong Kong’s regulations are particularly appealing for financial services, while Singapore’s regulatory environment supports tech startups and R&D.
When it comes to taxation, Hong Kong offers low rates (8.25% on the first HK$2M) with a simple territorial tax system, meaning only income earned locally is taxed. Singapore has a flat 17% corporate tax, but generous incentives are available, especially for R&D activities. In Dubai, the 0% tax in free zones makes it an attractive option for maximizing profitability, though the process for opening bank accounts can be slower.
Takeaway: Hong Kong and Singapore offer a balanced blend of clear regulations and reasonable taxes, making them suitable for businesses seeking transparency. Dubai, however, offers unbeatable tax benefits, especially for companies aiming to enter the Middle East.
Balancing Cost of Living and Business Needs
Cost of living and lifestyle factors also matter. Hong Kong is known for its vibrant business culture but it comes with a higher cost of living. Singapore offers a high quality of life, excellent healthcare, and a strong educational system, making it ideal for expats with families. Dubai combines affordability with safety, offering a tax-free salary and a diverse expat community, though cultural differences may require some adaptation.
Takeaway: While Hong Kong offers unbeatable access to Asian markets, it’s one of the priciest cities. Singapore’s quality of life makes it a great choice for long-term business settlement. Dubai, with its lower living costs and safety, appeals to those looking to balance business goals with a cost-effective lifestyle.
Conclusion & Practical Insights
Each of these cities has strengths that cater to different business needs. Hong Kong works well for fast-paced, trade-focused businesses, Singapore is ideal for tech-savvy ventures, and Dubai suits businesses looking for tax efficiency and regional expansion.
Takeaway: Define your business’s short-term needs and long-term strategy, then match them with the location that aligns best. Whether it’s speed, tax advantages, or access to specific markets, let your business priorities guide your decision.
For a more detailed comparison of incorporation in these regions, you can read the full Statrys report.
Nestor Garcia is Head of Global Company Creation at Statrys. With a diverse background encompassing hospitality, product development, marketing, and fintech, he possesses a solid foundation in operations, proficiency in project management and agile methodologies (particularly Scrum), and a demonstrated ability to foster enduring client relationships. Nestor assists SMEs in establishing a global presence by creating compliant and well-structured companies in Hong Kong and Singapore, providing access to the extensive financial, industrial, and safety benefits that both cities has to offer.
