Setting up a business in Hong Kong and Singapore

Offshore Business Q&ACategory: Hong Kong CompanySetting up a business in Hong Kong and Singapore
Valery PiterezValery Piterez asked 2 years ago

Does anyone can help me with a business registration and bank account opening in Hong Kong and Singapore?

Please provide your offers with prices so I can choose the suitable one.

Thanks!

3 Answers
Best Answer
1NterCorp1NterCorp answered 2 years ago

Dear Valery, Please consider our offers by going through the information below.

HK Company

The best offer we can make without compromising the quality of our services is 1250 USD for a readymade HK company (including bank introduction, address and secretarial services for one year).

Packages:

We are glad to offer you 3 different packages to match your business needs.

First steps:

1). Choose the company name: either suggest the one you have in mind for the Corporate Registry availability check or you can pick the HK shelf company from the list of “ready-made” names on our website.

2). Send us an e-mail with scanned copies of the following documents of shareholder, director and bank account user (they may be represented by the same person):

  • passport (page with the photo and details);
  • the proof of address – driving license, recent utilities bill or bank statement (last two should not be older than 3 months.

3). Please indicate whether you need the nominee service. Information about the owners and directors of Hong Kong companies is available to the public. To preserve the confidentiality of the data we offer the nominee shareholder and director service, which comprises the name of our company instead of the director and shareholder names in the Corporate Registry.

Time:

It takes 5-7 working days (from the date of filing to the CR) to register a company. If the company does not use the nominee service, the prepared documents are sent to you by e-mail for signature of the company owner. After that signed documents are delivered to our Hong Kong office by the courier mail. When registering a new company with a nominee service all corporate documents are signed by us here in Hong Kong.When you purchase a shelf company with no nominee service procedure for re-registration, the process takes 1 week (from the date of the filing to government departments in Hong Kong). In case you would like to purchase a shelf company with nominee service, it shall take 3-4 days.

The visit to Hong Kong is only necessary to open a bank account.

Company maintenance:

Hong Kong is one of jurisdictions that require the secretary service maintenance for every incorporated company. We are providing the one stop solution by offering you the secretarial service in addition basic company formation.

In a year time the company shall incur the following expenses:

  • Secretarial service – 700 USВ;
  • Legal address provision – 300 USD;
  • Business registration renewal fee – 350 USD;
  • In case you use nominee service – 700 USD.

In 18 months after company formation we will receive the request from the Tax Department to prepare a report on the profit tax. We shall offer you a choice of auditing companies, and ask to provide the bank statements and supporting documents for every incoming and outgoing payment (invoices or contracts), so as to handle the report from your behalf.

  • Accounting report – from 400 USD;
  • Audit – from 700 USD.

Profit tax and offshore status:

There is only one tax that companies should consider in Hong Kong – profit tax of 16.5% applied to the difference between revenue and expenditures. If the company does not conduct activities in Hong Kong and runs its operations abroad – it is possible to obtain exemption from profit tax. In order to do so, some condition should be fulfilled:

  • do not have an office and staff in Hong Kong;
  • do not sign any the contracts in Hong Kong;
  • do not to make settlements with residents of Hong Kong;
  • seek off-shore status together with filing the audited statement of profit tax;
  • in order to ensure the success of application we advise to provide the shipping invoices, shipment insurances and etc together with the contracts and invoices for each incoming and outgoing transactions. This is not a onetime procedure. But in the case of a successful application the next request may come from the Tax Department only in 3 years.
1NterCorp1NterCorp answered 2 years ago

Bank account

In order to open an account in one of the major Hong Kong banks a personal meeting is required. For this case the following set of documents should be prepared:

  1. Valid business card of the beneficiary;
  2. Confirmation of beneficiary’s residential address – a driver license, recent utility bill or bank statement (no older than 3 months). If the document is not in English, you need to prepare a translation into English verified by notary;
  3. Copies of contracts and invoices of any company, signed by the beneficiary, in order to confirm the fact that the account holder is not trying to start a career as a businessman from Hong Kong. Language of documents should be clear to bank officer in Hong Kong (English or Chinese). Two contracts and matching invoices are sufficient. There is no need to certify copies of documents with the company stamp. Documents should not be older than 6 months. The type of activity mentioned in contracts should match the company’s business plans in Hong Kong. It is also necessary to enclose the purchase and sale contracts.According to Hong Kong banks requirements in respect of bank account opening the companies have to have the business links with South-East Asia. In particular you have to provide with the existing contracts with your business partners from this region (Hong Kong, China, Singapore, Japan, Taiwan);
  4. Extract from the registry of any company where the beneficiary performed the duties of the director (as mentioned in contracts) – should be in English;
  5. Business Plan.
1NterCorp1NterCorp answered 2 years ago

Singapore company:

A. Procedures
  1. Suggest a company name – there are no “ready-made” companies in Singapore).
  2. After you have a chosen company name, you will need to provide us the following documents of All Directors and All shareholders:
    a. passport (page with the photo and details) and the proof of address

    b. proof of address – driving license, recent utilities bill or bank statement (last two should be issued within the recent 3 months)

    c. bank reference letter issued by the bank where you have personal account

B. Price

Company incorporation service – USD700Registered address – USD300;

Company Secretarial services – USD650

Resident Director services – USD2,000

Deposit refundable at the company closure for the Resident Director Services – USD 2,000

Resident Director is a compulsory. The Director has not only administrative, but also criminal liability. Minimum requirement – one director.

Company registration takes 2-4 days from the date of filing the application.

Rate on taxable income – 4.5% on income up to SGD10,000, 8,5% of income from SGD10,000 to SGD300,000 per year, 17% of the income in excess of SGD300,000. USD1 = SGD1.37.

There is a tax exemption on the first SGD100,000 for newly registered companies in the first three years after the registration. To meet the requirements to a newly established company the company has to meet the following conditions:

  • The company is incorporated in Singapore;
  • The company is a tax resident of Singapore in the year for which the tax is being calculated (ie the company’s business and operations management is carried out in Singapore);
  • The number of shareholders is not exceeding 20;
  • A minimum of one shareholder is entitled to 10% of shares, all shareholders are individuals owning shares under their own names.Non-residents are required to pay income derived from the sources in Singapore (10-17%).

    Please note: individuals and entities in Singapore have to act as tax agents and withhold tax when paying income of the following nature:

  • Commission to the foreign agents;
  • Directors’ remuneration to the non-resident directors (17%);
  • Remuneration of the accountants;
  • Royalties;
  • From transactions in real estate, etc.

Good and Services Tax (GST) is equal to 7% of the value of goods or services produced in Singapore as well as the goods imported into Singapore. If the company is registered in the form of “Limited Exempt Private Company”, it shall be exempt from filing audited financial reports. But its annual turnover should not exceed SGD5 mln, the number of the shareholders should not exceed 20 and all shareholders should be individuals.

Accounting charges – from USD150 per month. Rates vary depending on the volume and number of transactions.

Avatar

About the Author:

Join Our Newsletter Feed