How may incorporation in Hong Kong affect a web startup? Incorporation in Hong Kong vs. Singapore?
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Is it safe to incorporate there, considering that Hong Kong was returned to China in 1997? The reason we are considering Hong Kong is because it's cheaper to incorporate there than in Singapore, which also seems to be more international, tech startups-friendly.
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Answer:
Yes, it's save. If Beijing wanted to do something bad, it would have done it already. The incorporation fees are pretty small, and I don't think that it should be a major concern as to where to incorporate.
Joseph Wang at Quora Visit the source
Other answers
I am based in SG now. There are more help from Government in SG in terms of seed funding. And plenty of connection with the Valley, that might help. If you are targeting Southeast Asia, SG is probably a better launch base.
Alan Lam
I'm not sure if you have the right criteria in mind. Things to cover should be: Tax impacts on investors Availability of lawyers skilled with VC funding (in the jurisdiction) Regulatory and tax compliance effort required in the country Probably a few other things I haven't thought about For example you may have to pay tax on all employees of a Hong Kong company even if they don't work in Hong Kong. You will also need a company secretary to file certain things every year. Also any capital gains tax difference between HK and Singapore could make a big difference to investors. Main question is probably where you intend to actually do business. Check out the local startups and find out what the issues are, that should help you decide. The China thing isn't a big deal, I have been involved in a big investment (US$200M) and that kind of political risk was rated pretty low.
Anonymous
It is entirely safe. So,there is no point of getting afraid about such political issue anymore. Both Hong Kong and Singapore topped the list when you think of company incorporation.However registering a company is Hong Kong requires quite a bit of paperwork. In short, the process is relatively daunting and complicated when you compare with http://www.sbsgroup.com.sg/. Additionally, government's support towards start-up is more prominent in the latter jurisdiction. Given the myriad benefits SG has to offer, I suggest you go for incorporation in Singapore.
Michael Smith
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