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HONG KONG
SINGAPORE
DUBAI
2024 Report

As interest in business incorporation continues to rise across Asia and the Middle East, this report takes a closer look at the business environments in Hong Kong, Singapore, and Dubai. Each of these regions offers unique benefits and faces distinct challenges, making them attractive yet different options for entrepreneurs and business owners. Hong Kong is known for its strong financial infrastructure and tax benefits, while Singapore is recognized for its efficiency and regulatory clarity. Dubai, on the other hand, offers strategic advantages through its free zones.

In this report, we not only provide a comparative analysis of the economic landscapes and regulatory frameworks of these three key jurisdictions but also include data from Statrys' survey and secondary research. Our aim is to equip entrepreneurs and business owners with valuable insights to help them make informed decisions on where to establish their operations.

Looking ahead, each of these regions is adapting to global economic shifts in unique ways:

  • Hong Kong is reinforcing its role as an international financial hub, leveraging its strong legal system and strategic position between East and West.
  • Singapore is building a robust ecosystem for startups and digital innovation, supported by government policies and world-class infrastructure.
  • Dubai is rapidly evolving into a global business and tourism hub, driven by ambitious development projects and investor-friendly policies.

However, each location faces unique challenges:

  • Hong Kong navigates political uncertainties and regional competition.
  • Singapore faces challenges related to land scarcity and the need for continuous economic innovation.
  • Dubai needs to balance its rapid urban development with resource management and economic diversification.

Future Outlook

Each jurisdiction's trajectory will be shaped by unique factors. Hong Kong's integration with the Greater Bay Area, Singapore's innovation in fintech and sustainable technologies, and Dubai's economic diversification and focus on emerging industries.

Companies should monitor these developments alongside broader economic, regulatory, and geopolitical shifts in Asia and the Middle East to make informed long-term decisions.

Understanding both the incorporation processes and regulatory compliance requirements is important when entering new markets. This section provides a comparison of the incorporation timelines, costs, and regulatory frameworks in Hong Kong, Singapore, and Dubai to help businesses make informed decisions.

Compliance is equally critical. Non-compliance can result in severe penalties and operational disruptions. Statrys' survey compares the incorporation speed and compliance time across these three jurisdictions, providing insights into the efficiency of each region.

Key Factors for Incorporation

Speed

Hong Kong and Singapore offer quick incorporation, with most businesses completing registration in just a few days. Dubai’s free zones are also efficient, typically finalising the process within a week.

Local Presence

Singapore and Dubai require a local director for mainland companies, while Hong Kong offers more flexibility in this regard.

Capital Requirements

Hong Kong and Singapore generally have minimal or no capital requirements, whereas Dubai’s requirements vary depending on the location and company type.

Incorporation Speed Comparison:
Businesses Completing Incorporation Within a Week

91%

of respondents completed incorporation within a week.

85%

of respondents completed incorporation within a week.

70%

of respondents completed incorporation within a week.

Compliance Time Comparison:
Time Spent on Monthly Compliance Tasks

0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%

Hong Kong

70% of respondents report spending minimal time on monthly compliance tasks.

Singapore

68% of respondents report spending minimal time on monthly compliance tasks.

Dubai

69% of respondents report spending minimal time on monthly compliance tasks.

Incorporation Process Breakdown: How They Compare

Average Time to Incorporate
Online Registration
Minimum Shareholders
Minimum Directors
Local Director Required
Minimum Capital
Company Secretary Required
Cost
Hong Kong
3-5 days
Yes, via e-Registry
1
1
No
No minimum

Yes

Min HKD 4,000 High HKD 20,000
Singapore
3-5 days
Yes, via BizFile+
1
1
Yes
SGD1

Yes

Min SGD 402 High SGD 4,315
Dubai
3-7 days (Free Zone), 7-14 days (Mainland)
Yes, but varies by Free Zone
1-2 (depends on company type)
1
Yes (for Mainland companies)
Varies (often zero in Free Zones)

Yes

Min AED 12,079 High AED 57,481
Statrys Expert Insight:

"Choosing the right place to incorporate depends on your business needs. Singapore offers a quick, straightforward process and a strategic location in Asia. Hong Kong is ideal for international trade, offering competitive tax benefits and access to the Chinese market. Dubai’s free zones provide 0% - 9% corporate tax and full foreign ownership but involve a more complex setup. You need to choose the right free zone and plan for a potentially longer bank account opening process."

Statrys team
Nestor Garcia

Head of Incorporation Services, Statrys

2

Banking and
Financial Services

Access to efficient banking and financial services is key to maintaining smooth business operations in any jurisdiction. This section explores the banking landscapes in Hong Kong, Singapore, and Dubai, comparing traditional and alternative banking options, account opening processes, and international banking services.

The quality of these services plays a pivotal role in financial management and business growth. Statrys' survey shows varying satisfaction levels with banking services in these regions, highlighting their influence on operational efficiency.

Key Insights into Regional Banking Services

Traditional and Alternative Banking

Hong Kong, Singapore and Dubai offer robust international banking services. However, Hong Kong and Singapore lead in digital banking, providing faster account openings and more user-friendly interfaces. Dubai is making progress but still lacks a comprehensive range of digital-only options.

Account Opening Process and Speed

Hong Kong and Singapore’s banks and alternatives have significantly reduced the time needed to open a business account. Both jurisdictions offer extensive remote financial services. Dubai’s account opening process is slower, particularly for remote operations, as digital banking options are still expanding.

Currency Flexibility

Hong Kong and Singapore offer greater flexibility in currency transactions compared to Dubai. Dubai has some restrictions, particularly on AED (Dirham) transactions, while the other two jurisdictions offer more liberal currency exchange and transaction policies.

Banking Services Satisfaction Comparison:
Satisfaction Levels By Jurisdiction

88%

of respondents are highly satisfied with the banking services available.

85%

of respondents are highly satisfied with the banking services available.

70%

of respondents are moderately satisfied with the banking services available.

Regional Breakdown:
What Drives Satisfaction in Banking Services?

Fast Account Opening
Service Quality (e.g., Payment Cards, Loans)
Customer Support
Digital Capabilities
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%

Hong Kong

Satisfaction is primarily driven by the service quality and digital capabilities, followed by fast account opening. Customer support is considered less important, though still valued to some extent.

Singapore

Satisfaction is evenly distributed across all factors, with fast account opening, service quality, customer support, and digital capabilities. This balance suggests that businesses in Singapore value a well-rounded banking experience.

Dubai

Customer support and service quality are the most significant drivers of satisfaction. Fast account opening and digital capabilities are important but have a lesser impact.

Banking and Financial Services Breakdown: How They Compare

Factor
Traditional banks
Alternative to banks
Ease of Opening Business Account
Average Time to Open Account
Remote Account Opening
International Banking Services
Currency Restrictions
Hong Kong
Well-established
Multiple options: Virtual banks and fintech
Moderate
1-12 weeks
Available

Excellent

Minimal
Singapore
Well-established
Multiple options: Digital banks and fintech
Moderate
1-8 weeks
Available

Excellent

Minimal
Dubai
Established
Emerging
Challenging
4-8 weeks
Limited

Good

Some
Statrys Expert Insight:

The banking landscape in Singapore, Hong Kong, and Dubai is rapidly evolving, driven by digital transformation. Singapore and Hong Kong lead in digital banking innovation, with Dubai catching up quickly.

This shift is improving services but also creating challenges:

Account opening remains complex, especially for complex businesses.
Cross-border transactions still face hurdles in speed and cost, and transparency fees
Integration of banking with other financial services is becoming crucial.

Fintech solutions like Statrys are addressing these challenges by offering:

Faster, simpler account opening processes.
More efficient multi-currency management and international transfers.
Integration of banking with other business financial needs.

We expect to see more seamless cross-border financial operations as regulations evolve to accommodate new banking models. Businesses should seek financial partners that offer innovative solutions and can navigate the regulatory landscape across multiple jurisdictions.

Statrys team
Bertrand Theaud
Founder, Statrys
3

Taxation

The taxation landscape significantly influences business decisions, shaping both incorporation choices and long-term financial strategies. Tax rates and overall fiscal policies can have a major impact on a company's profitability and competitiveness.

This section compares corporate tax rates and indirect taxation across Hong Kong, Singapore, and Dubai. It includes insights from a survey indicating that tax benefits are a key factor in business location decisions.

Tax Considerations for Business Location Decisions

Corporate Tax Rates

Hong Kong offers a competitive rate at 16.5%, while Singapore maintains a stable rate of 17%. Dubai's initial 0% rate is a significant incentive; however, Dubai now imposes a 9% corporate tax beyond certain thresholds.

Tax Incentives and Deductions

Hong Kong, Singapore and Dubai provide opportunities to reduce tax liabilities, but specific offerings vary. Hong Kong offers R&D tax deductions, while Singapore provides extensive tax holidays for certain industries.

Indirect Taxation

Hong Kong's absence of GST/VAT contrasts with Singapore's impending increase. Dubai currently has a 5% VAT.

Business Location Preferences:
The Role of Tax Benefits

70%

of the respondents chose Hong Kong for its tax benefits (low corporate tax rate, simple tax system)

75%

of the respondents chose Singapore for its tax benefits (low corporate tax rate, attractive tax incentives)

86%

of the respondents chose Dubai for its tax benefits (zero corporate tax rate, no personal income tax)

Tax Filing Across Jurisdictions:
How Easy Is It?

Hong Kong

77% say tax filing is straightforward

Singapore

80% say it's very easy to file taxes

Dubai

No corporate tax filing is required due to the 0 corporate tax rate

Taxation Landscape Breakdown: How They Compare

Factor
Currency
Tax Authority
Website
Tax Year
Tax Return Due Date
Tax Return Extensions
Corporate Tax Rate
Tax on Foreign-Sourced Income
Dividend Tax
Capital Gains Tax
GST/VAT
Hong Kong
HKD
Hong Kong Dollar
Hong Kong tax Authority

Inland Revenue Department (IRD)

1 April to 31 March
Within 1 month of the date of issue
Possible, depending on accounting dates for sole proprietors of unincorporated businesses
8.25% on the first HK$2M 16.5%
Territorial basis. Foreign-sourced income is generally exempt, even if remitted.
0%
0%
No GST/VAT
Singapore
SGD
Singapore Dollar
Singapore tax Authority

Inland Revenue Authority of Singapore (IRAS)

1 January to 31 December
30 November
Not possible
17%
Territorial basis. Foreign-sourced income taxed only if received in Singapore and not exempt.
0%
0%
Dubai
د.إ
Dirham (AED)
Dubai tax Authority

Ministry of Finance

From 1 June 2023
Corporate tax will be implemented starting from the financial year beginning on or after 1 June, 2023.
Possible. The request must be made no later than 6 months after the end of the original tax period.
0% on first AED 375,000, 9% above
No tax on foreign income
0%
0%
5% VAT
Statrys Expert Insight:

Tax optimization opportunities vary across these jurisdictions. Hong Kong offers a plethora of tax exemptions and deductions, especially for trading and financial services; Singapore offers generous tax incentives for research and development activities and is a hub for innovation-based businesses; Dubai tries to attract as much foreign capital as possible, and offers tax holidays and exemptions for specific industries.

Any individual business will find one jurisdiction more advantageous than the other two, depending on its activities, income sources and ambition.

KH

Kevin Huffman

Owner, Kriminil Trading

4

Workforce
Considerations

Access to talent and the broader labour environment significantly impact business operations when expanding into new markets. The availability of skilled workers, labour laws, and employment costs can significantly impact a company's operational efficiency and growth potential.

This section compares key workforce factors in Hong Kong, Singapore, and Dubai, focusing on talent availability, labour laws, and employment costs. According to Statrys' survey, Singapore leads in the ease of finding and retaining talent, followed by Dubai and Hong Kong.

Workforce Dynamics in Global Hubs

Local vs. Expatriate Workforce Balance

Hong Kong and Singapore maintain a balanced workforce. In contrast, Dubai relies heavily on expatriate workers offering access to a diverse international talent pool but potentially increasing dependency on expatriate labour.

Employment Protections and Benefits

Hong Kong and Singapore provide strong employment protections and mandatory benefits. Dubai, however, offers moderate protections and relies on end-of-service gratuity rather than a provident fund system, which may offer more flexibility but less security for employees.

Specialisations and Talent Pool

Hong Kong specialises in finance, trade, and professional services with a highly skilled, finance-focused talent pool. Singapore has a tech-savvy workforce excelling in tech, finance, and biotech. Dubai’s diverse talent pool is growing in hospitality, finance, and oil & gas.

Overall Satisfaction With Local Labour Market

80%

of respondents are satisfied with the local labour market.

85%

of respondents are satisfied with the local labour market.

70%

of respondents are satisfied with the local labour market.

Regional Breakdown:
What Drives Satisfaction in the Workforce Considerations

Labor Law Compliance
Ease to Find and Retain Talent
Labor Cost
0%
0%
0%
0%
0%
0%
0%
0%
0%

Hong Kong

Satisfaction is driven equally by the ease of navigating labor laws and the manageable labor costs, with a slight edge in the ease of finding and retaining talent.

Singapore

The ability to find and retain talent is a strong point, matched by satisfaction with labor costs and navigating labor laws.

Dubai

Labor cost is a more significant factor in driving satisfaction, followed closely by ease of finding and retaining talent. Navigating labor laws is seen as slightly more challenging compared to the other regions.

Workforce Factors Breakdown: How They Compare

Factor
Minimum Wage
Annual Leave
Standard Work Week
Foreign Talent Hiring
Employee Protections
Local vs. Expat Ratio in Workforce
Mandatory Benefits
Local Talent Pool
Education Level
Language Skills
Specializations
Hong Kong
No statutory minimum wage, but the Progressive Wage Model is in place for certain sectors.
7-14 days (based on service)
44 hours
Employment Visa system

Excellent

50% local50% foreign

Mandatory Provident Fund (MPF)
Highly skilled, finance-oriented
High (strong tertiary education)
Mainly Cantonese, English, and Mandarin
Finance, Trade, Professional Services
Singapore
There is no statutory minimum wage, but the Progressive Wage Model applies to specific industries.
7-14 days (based on service)
44 hours
Employment Pass system

Excellent

60% local40% foreign

Central Provident Fund (CPF) contributions
Highly skilled, tech-savvy
High (world-class universities)
Multilingual (English, Mandarin, Malay, Tamil)
Tech, Finance, Biotech
Dubai
No minimum wage
30 calendar days
48 hours
Work Permit and Visa system

Excellent

20% local80% foreign

End-of-service gratuity
Growing, diverse
Improving (focus on international education)
Mainly Arabic and English
Hospitality, Finance, Oil & Gas
Statrys Expert Insight:

Hong Kong has a strong labor market with skilled professionals in finance, technology, and logistics. The workforce is multilingual and well-supported. Singapore's market focuses on technology, finance, and healthcare, and benefits from government-led education initiatives. In Dubai, there is a cosmopolitan workforce excelling in construction, tourism, and finance, but it relies more on expatriates.

Employment regulations vary: Hong Kong's laws are simpler, Singapore's more regulated, and Dubai's regulations differ between mainland and free zones. Remote work is popular in Hong Kong and Singapore but less so in Dubai. In terms of cost, Hong Kong is the most expensive, followed by Singapore, while Dubai offers flexibility but may come with potential expatriate-related expenses.

LB

Lucas Botzen
Global HR Insights Asia
5

Expat Living and
Quality of Life

Quality of life and expat living conditions are vital for entrepreneurs and employees as they influence overall satisfaction, productivity, and the ability to thrive in a new environment. These factors ultimately affect decisions on where to relocate or establish a business.

Key considerations such as housing, healthcare, education, and cultural integration play a significant role in shaping these outcomes. This section compares living conditions in Hong Kong, Singapore, and Dubai, focusing on the elements that contribute an appealing environment for living and working.

Quality of Life Factors for Expats in Global Cities

Living Environment:

Singapore offers a high quality of life and top-tier infrastructure, but it is the most expensive city in Asia. Hong Kong follows as the second most costly, boasting a dynamic business environment. Dubai, however, is more affordable, particularly in housing and daily expenses, making it a more cost-effective choice.

Economic and Lifestyle Factors

Singapore leads in GDP and average salary, making it ideal for financial stability. Dubai, with a lower cost of living and higher safety, is appealing for those prioritizing affordability. Hong Kong remains a key financial hub with strong FDI and efficient transport.

Education and Healthcare

Singapore’s top healthcare and education systems, along with a low language barrier, make it a top choice for expatriates. Dubai offers a safer environment and favourable climate, while Hong Kong provides a strong academic environment but faces higher pollution and income inequality.

Overall Satisfaction Comparison with Expat Life
Satisfaction Levels By Jurisdiction

75%

of respondents are satisfied with their expat life.

85%

of respondents report satisfaction.

80%

of respondents are satisfied with their expat experience.

Regional Breakdown:
What Drives Satisfaction in the Expat Life?

Cost of Living
Lifestyle and Culture
Education
Healthcare system
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%

Hong Kong

Satisfaction is largely driven by lifestyle and culture, with cost of living and education also playing key roles. The healthcare system has a slightly lesser impact.

Singapore

Satisfaction is balanced across lifestyle, cost of living, education, and healthcare, indicating a well-rounded living environment.

Dubai

Lifestyle and cost of living are the top drivers, while education and healthcare contribute but with less emphasis.

Expat Life and Quality of Life Factors Breakdown: How They Compare

Factor
GDP
Foreign Direct Investment
Average Salary
Big Mac Index
Cost of Living Index
Quality of Life Index
Safety Index
Healthcare Index
Pollution Index
Language Barrier
Number of Universities
Transportation
Average Cost for a Ticket
Hong Kong
USD 382.05 billion
USD 216,962 million
USD 50,000
HKD 25.00 (USD 3)
70.8
134.5
78.4
66
67
Moderate
22
Comprehensive
HKD 15 (USD 1.92)
Singapore
USD 501.43 billion
USD 222,667 million
USD 70,000
SGD 6.65 (USD 4.94)
76.7
162.3
77
71.9
32.5
Low
34
Comprehensive
SGD 1.50 (USD 1.12)
Dubai
USD 504.17 billion (UAE)
USD 53,016 million
USD 50,000
AED 18 (USD 4.90)
55.8
177.5
84.4
70.4
48.2
Moderate
31
Comprehensive
AED 4 (USD 1.09)

Expat Life and Quality of Life Experiences

Singapore's multicultural environment and competitive education system are significant draw factors for expatriate business owners. Matthew Murray, Managing Director of Sales Higher, relocated his business from Tokyo to Singapore over a decade ago, citing the quality of the environment for raising his daughter as a primary factor.

MatthewIcon
Matthew Murray
Managing Director, Sales Higher

Olga, an entrepreneur who has lived in Dubai for 4.5 years, noted: 'In a world with so much economic and political instability, the UAE government has a bold vision and is doing everything it can to make the UAE the most attractive country to live and work. Not only is this working, it's creating incredible business opportunities.

olga
Olga Jasicka
Founder, Ombrello.ae

Conclusion

Hong Kong stands out as a top choice for most companies due to its robust financial infrastructure, strategic position for international trade, and the ability to incorporate a business rapidly. With company registration often completed within just a few days, Hong Kong offers an exceptionally efficient and business-friendly environment. Its competitive tax rates, combined with a strong legal framework, make it an ideal location for businesses looking to establish a presence in Asia, particularly with access to the Chinese market. However, challenges such as political uncertainties and high living costs could impact long-term stability and talent retention, particularly for industries outside the finance sector.

Singapore is another prime destination, particularly for startups and tech companies. Known for its clear regulatory framework and robust support for innovation, Singapore provides a tech-savvy workforce and a balanced living environment with top-notch healthcare and education. While the country’s high cost of compliance and labour might challenge smaller businesses, its strong business culture and quality of life make it an attractive choice for expatriates and entrepreneurs alike.

Dubai presents a compelling option for companies seeking a tax-free environment and access to the Middle Eastern market. Dubai’s diverse and growing talent pool, especially in hospitality, finance, and oil & gas, is a significant draw. However, businesses must be prepared for Dubai’s evolving regulatory landscape and slower banking processes. The city excels in affordability and safety, making it an appealing choice for those prioritizing a cost-effective living environment. Yet, navigating cultural differences and the local legal system can be challenging for expatriates.

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