Both locations are ideal for business, with their pro-business regulations, economic stability, attractive tax regimes, and strong legal framework. It is a tight race between Asia’s two economic powerhouses, in the economic and financial domains.
Singapore (PRWEB) February 14, 2015
For years, Singapore and Hong Kong have been going head to head in terms of attracting businesses from across the globe.
Both Singapore and Hong Kong are strong financial and wealth hubs in Asia. Moreover, both jurisdictions have efficient and business-friendly policies.
Indeed, choosing between Singapore and Hong Kong as their base of operations is not an easy decision for international investors and multinational entities.
In a recent report, Singapore Company Registration specialist Rikvin takes a closer look at the competitive advantages of these two regional neighbours.
The report provides an overview of the statistical rankings of Singapore and Hong Kong across various indicators, such as economic growth, taxation regimes, quality of workforce, and pro-business regulations, among others. The end goal is to provide a comparative analysis of these jurisdictions against the framework of starting, launching, operating, and expanding a business.
Key factors highlighted include:
EASE OF DOING BUSINESS RANKINGS
Both Singapore and Hong Kong belong in the top 5 of the World Bank’s “Doing Business Index 2015,” which ranks major economies according to their ease of doing business. A higher ranking means that the economy is more conducive to starting and operating a company. Singapore has consistently been number one in global rankings; whereas Hong Kong remains in the third highest spot.
Both countries operate a territorial tax system, which means that only domestic incomes are taxed.
Hong Kong’s headline rate of corporate tax is 16.5%, while Singapore’s is 17%. However, Singapore’s effective corporate tax rate is much lower, from 0% to 17%, when taking into account full and partial tax exemptions for qualifying companies.
Both countries do not tax capital gains, and do not distinguish foreign and local companies for tax purposes.
QUALITY OF WORKFORCE
The Global Competitive Report ranked both Singapore and Hong Kong well for labor market efficiency. Global Competitive Index ranked Singapore first while Hong Kong was ranked third. Singapore scored very well in 9 out of 10 indicators while Hong Kong scored well in 7 indicators.
Competition between Hong Kong and Singapore is intense. Each jurisdiction has qualities that supersede the latter. Ultimately, each has something unique to offer.
“Given its proximity to China, Hong Kong is placed at a strategic location for a rapidly maturing financial market. Singapore, in comparison, is situated right at the heart of Southeast Asia. It is closer to India, China and Australia, the three giant economies of the region. In terms of regional connectivity, both countries are in good stead to be the business hub of Asia,” said Mr. Satish Bakhda, COO of Rikvin.
“In a nutshell, both locations are ideal for business, with their pro-business regulations, economic stability, attractive tax regimes, and a strong legal framework. It is, indeed, a tight race between Asia’s two economic powerhouses, in the economic and financial domains,” he concluded.
Read the complete report here.
Established in 1998, Rikvin has partnered with thousands of investors, entrepreneurs and professionals who want to work or do business in Singapore. Rikvin’s areas of expertise include Singapore company registration, accounting, taxation and other related corporate services. Rikvin is also a licensed employment agency and offers a full spectrum of Singapore work visa services for professionals who wish to relocate to Singapore.
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