Hong Kong vs Singapore in 2025: Which Is Better for Business?

Whether you are entering the region for the first time or considering moving your business, Hong Kong and Singapore offer two distinct environments for company setup, taxation, regulation, and regional access. Each has its own set of advantages and challenges, but both remain strong options for international businesses.

So, which city is the right fit?

This article offers a practical comparison of the two cities, covering everything from business infrastructure to banking and relocating to each city, to help you decide where to set up your company and what that choice means for your next move.

Hong Kong and Singapore are often compared for their roles as business hubs in Asia. As former British colonies, the two share a legal system and institutional roots but have developed into distinct city-state models of governance and commerce.

Before diving into the details, here’s a quick look at how Hong Kong and Singapore compare when it comes to setting up and running a business.

Hong Kong is more accessible for non-residents. It offers a flexible, low tax regime, low setup costs, and strong connections to mainland China. It's ideal for service-based sectors like finance, logistics, consulting, and cross-border trade. Setup is fast, tax reporting is simple, and banking access includes RMB and international currencies.

Singapore stands out for long-term planning, IP protection, and R&D incentives. While it’s more cost-effective if you have local ties, it requires a resident director and has higher overall incorporation costs for foreigners. Still, its broader income tax treaty network and policy stability make it attractive for startups, regional headquarters, and businesses targeting ASEAN, like Malaysia and Thailand. 

✅ Choose Hong Kong if your business focuses on China and operates in finance, trading, or professional services.

✅ Choose Singapore if you’re building a tech or IP-driven company and want a stable base for regional growth.

Hong Kong and Singapore are two of Asia’s strongest economies, but they offer different advantages depending on how and where you plan to grow.

• Hong Kong ranks 5th in the IMD World Competitiveness Ranking. In 2024, its GDP per capita reached USD 54,134, with further growth expected in 2025. Its strengths lie in finance, logistics, professional services, and direct access to China through CEPA and the Greater Bay Area.
• Singapore ranks 1st in competitiveness and has the highest GDP per capita in Southeast Asia in 2024 at USD 92,930. Its economy is known for long-term policy planning, with strong performance in finance, tech, manufacturing, and ICT. It serves as a base for ASEAN expansion and global R&D.

Both economies are open, trade-focused, and highly regulated. But in practice, the difference lies in orientation: Singapore supports structured, innovation-led growth, while Hong Kong offers flexibility and proximity to Chinese markets. 

For entrepreneurs deciding where to operate, the real question is how each location handles company setup, regulatory clarity, and ongoing operational support. Both Hong Kong and Singapore offer strong business environments, but they excel in different areas. Hong Kong stands out in trade facilitation and regulatory predictability, while Singapore leads in business entry and operational efficiency. The right choice depends on whether your priority is ease of starting a business or long-term trade and market access.

• Hong Kong leads in regulatory governance. Its policies are published in advance, offering transparency and predictability for long-term planning. It also ranks 1st in international trade regulations in the World Bank’s Business Ready Index, with a score of 90.77, which is a key strength for businesses involved in cross-border trade. 
• Singapore ranks 2nd for ease of business entry (score: 93.57), 1st in operational efficiency (score: 87.33), and 10th in market competition policy (score: 62.29). Its policy framework is especially supportive for startups and scale-ups in sectors like tech, science, and IP-driven innovation.

Hong Kong and Singapore both allow full foreign ownership and offer accessible online incorporation processes. Both cities use English as an official language, and company documents can be filed online in English. This ease of access appeals to regional entrepreneurs, including Singaporean founders looking to expand into Hong Kong and vice versa.

• Hong Kong does not require a local director. You only need one director of any nationality, a local company secretary, and a registered address. Applications can be submitted online via the Companies Registry’s e-services, unless there is a corporate shareholder outside Hong Kong, in which case, physical presence may be required.
• Singapore requires at least one resident director who is a citizen, permanent resident, or holds a valid work visa. A local corporate secretary and business address are also mandatory. The process is online via Bizfile, but non-residents who don't have SingPass access need to work through a registered filing agent.

While government fees in Singapore are slightly lower, total incorporation costs are often higher due to the need to appoint a local or nominee director. For entrepreneurs foreign to both places, Hong Kong is a more flexible and affordable option for entrepreneurs setting up remotely.

Tax policy plays a significant role in long-term planning, especially for international businesses. While both Hong Kong and Singapore offer competitive rates and offshore income exemptions, there are differences in how tax is applied, what exemptions are available, and the broader treaty coverage.

• Hong Kong applies a two-tiered corporate tax system: 8.25% on the first HKD 2 million in profits and 16.5% beyond that. Companies that generate income exclusively outside of Hong Kong can apply for offshore tax exemption, resulting in a 0% rate on qualifying profits. There is no capital gains tax, no dividend tax, and no GST. General imports are exempt from tariffs. While its Double Taxation Avoidance Agreement (DTA) network is smaller than Singapore's, it still covers over 50 jurisdictions, offering relief in many key markets.
• Singapore charges a flat corporate tax rate of 17% but offers targeted incentives that significantly reduce the effective rate for new companies. Qualifying startups can access exemptions on the first SGD 200,000 in profits, and businesses involved in R&D may benefit from further deductions. Singapore also imposes a 9% Goods and Services Tax (GST), which applies to most goods and services. It maintains DTAs with over 100 countries, offering stronger global coverage for businesses with cross-border income streams.

Singapore’s flat income tax rate is offset by various startup exemptions. Meanwhile, Hong Kong’s low tax regime, particularly for offshore income, remains one of its strongest competitive advantages.

Overall, Hong Kong provides more straightforward tax treatment and lower rates for established companies with offshore income. Singapore offers more in the way of structured tax incentives and international tax coordination, which can benefit startups or R&D-focused businesses in their early stages.

Money is at the core of the business, and the ability to manage it effectively within a given jurisdiction is beneficial. A strong banking system supports daily operations, FX, and long-term growth. Hong Kong and Singapore are both top global financial hubs, but the banking experience differs in how businesses access and use accounts.

• Hong Kong ranks 3rd globally as a financial centre. It has over 100 banks, including 8 digital-only institutions. Business accounts often support HKD, RMB, and USD. While financial institutions offer strong cross-border support, most traditional providers still require an in-person visit to open an account, especially for foreign directors. Some remote options exist, but availability is limited.
• Singapore ranks 4th, with over 100 banks and a strong focus on digitisation, including 5 licensed digital banks. Multi-currency accounts are widely available, and some banks offer partial online setup. However, most non-residents will still need to complete part of the process in person. Initial deposit requirements may also be higher.

In both locations, alternatives to traditional banks are seeing increased interest from SMEs. Licensed fintech firms and payment service providers offer online business accounts with multi-currency support and integrated FX tools. These accounts are easier to open remotely but are not classified as bank accounts.

In short, Hong Kong is a strong choice for businesses with cross-border operations in Greater China. Singapore offers smoother processes for regional growth across ASEAN, particularly if you need institutional banking or financing tools.

Hiring decisions depend not just on costs but on the availability of qualified talent in your industry. Both Hong Kong and Singapore are known for international workforces, but they focus on different strengths.

• Hong Kong ranks 9th in IMD’s World Talent Ranking, with a labour pool concentrated in finance, trade, logistics, and professional services. The city also ranks 19th in the World Bank’s labour regulation category, reflecting a business environment with relatively predictable employment rules. Hong Kong’s current statutory minimum wage is HKD 42.10 per hour, effective May 2025. This applies broadly, with few exceptions.
• Singapore ranks 2nd globally in the World Talent Ranking. With consistent government investment in STEM education, the local workforce has a strong foundation in science and technology. Singapore ranks 23rd in the World Bank’s labour regulation category, indicating a flexible but slightly more structured framework. There is no universal minimum wage, but sector-specific minimums apply under the Progressive Wage Model. The Local Qualifying Salary, used for foreign labour eligibility, is set at SGD 1,600 per month.

In summary, Hong Kong is well-suited for roles in finance, corporate services, and cross-border trade. Singapore is stronger for businesses in technology, research, and innovation-heavy sectors. Both jurisdictions offer access to international talent, but Singapore has a more formalised approach to wage structures and employment policies.

Relocating a business is not only about company registration, but also about living conditions, residency pathways, and quality of life. Hong Kong provides a more straightforward residency pathway, while Singapore offers higher lifestyle scores and a more structured environment for global headquarters.

• Hong Kong offers permanent residency after 7 years of continuous stay, with eligibility tied to economic contribution. The process is clearly defined through work or investment visa options. While office rents are high, key business districts like Central and Tsim Sha Tsui remain well-connected and commercially active. Quality of life ranks slightly lower than Singapore, but expat satisfaction is supported by cultural vibrancy, efficient transport, and broad English usage alongside Cantonese.
• Singapore does not set a fixed duration for permanent residency eligibility, though most applicants apply after six months to two years. The Global Investor Programme and EntrePass offer structured paths for entrepreneurs, and the city ranks 4th for business location and 2nd for utility services. Office rents are similarly high, especially in the CBD and Marina Bay. Singapore ranks higher for quality of life, with expats citing strengths across healthcare, education, and public infrastructure. English is the main business language, used alongside Mandarin, Malay, and Tamil.

Singapore’s focus on green space, urban planning, and tech-forward initiatives has helped it become a world-class destination for regional headquarters. Hong Kong, while denser, maintains proximity to manufacturing bases in countries like China, Malaysia, and Thailand, making it well-suited for logistics and sourcing operations.

Aside from business infrastructure, many founders consider factors like public transport, healthcare, and education. Singapore’s MRT system and Hong Kong’s MTR are both highly efficient, clean, and reliable. Daily life in each city includes strong digital services, fast connectivity, and access to both urban convenience and outdoor green space.

Singapore offers more access to attractions like Sentosa and beaches for year-round recreation, while Hong Kong offers hiking trails and harbour views. Both cities maintain high standards of cleanliness, infrastructure, and international schools, and both are equally viewed as expensive cities in Asia due to their high cost of living.

For entrepreneurs planning long-term investments, understanding where each city is heading is just as important as evaluating where they stand today. Hong Kong and Singapore continue to evolve in response to shifting regional dynamics, global regulation, and business needs, but different priorities shape their trajectories.

• Hong Kong is expected to strengthen its role as a key connector between mainland China and international markets. With increasing integration into the Greater Bay Area and strong government support for fintech, logistics, and professional services, it remains a critical entry point to the Chinese market. Ongoing efforts to modernise regulation and attract foreign investment show promise, particularly for businesses focused on trade and capital markets.
• Singapore is leaning into its reputation as a global innovation hub. Continued investments in technology, sustainability, and digital infrastructure support its long-term goal of attracting high-growth startups and multinational headquarters. Its policy stability and strong intellectual property (IP) protection also make it a strategic base for businesses targeting ASEAN and global markets.

To put it simply, Hong Kong is well-positioned for China-facing growth, while Singapore is focused on strengthening its global competitiveness through innovation and regional leadership. Both remain compelling choices, depending on where your business is heading.

If you’ve weighed the pros and cons of setting up in Hong Kong or Singapore and are ready to move forward, Statrys can help you put your plans into action.

We offer all-in-one incorporation packages for both Hong Kong and Singapore. The package includes everything you need to get started: a registered business address, a dedicated company secretary, a nominee director in Singapore, and expert guidance on local compliance from day one.

Once your company is up and running, we can also support your operations with a multi-currency business account (subject to approval), prepaid payment cards, and accounting and bookkeeping services, so you spend less time managing admin and more time growing your business.

Got questions? Contact us to get the answers.