A Comparative Look at Singapore and Hong Kong Holding Companies presented by Fabian Knopf

Multimedia

Presenter(s):


  • Title: A Comparative Look at Singapore and Hong Kong Holding Companies presented by Fabian Knopf
  • Date: June 6th, 2013

Fabian Knopf provides a comparative look at the use of Hong Kong and Singapore holding companies for investment into Asia. He will look at the tax advantages for these two locations and detail the reasons for setting up a holding company in these cities.

Transcript:


Hong Kong and Singapore Holding Companies:

The Benefits of Holding Companies for Foreign Direct Investment (FDI)

Investment Environment
• Hong Kong and Singapore as Asia‘s future international banking and trading centers
• Top two places of the World Bank‘s Ease of Doing Business rankings

Financial and Tax Benefits
• Additional layer of distance between Chinese subsidiary and parent company
• Relatively stable banking and legal systems
• No value-added tax
• Dividends are generally not taxed

The Question of Genuine Business
• Sourcing rules in Hong Kong
• Sourcing rules in Singapore
• Residency rules in Hong Kong
• Residency rules in Singapore

Hong Kong Company Set Up and Annual Compliance

Requirements for Incorporation
• At least one director and one secretary
• At least one registered shareholder
• If limited by shares, at least one founder member should hold one share
• Registered office situated in Hong Kong

Incorporation Process
1. Choose company name
2. Complete Company Incorporation and Business Registration
3. Receive certificates

Annual Compliance Requirements
• Annual general meeting
• Annual return filed
• Double Taxation Agreement (DTA)
• China-Hong Kong DTA entered into force on 8 December 2006
• Concept of Residence and “Permanent Establishment“ in DTA
• Main revenues covered by the DTA

Singapore Company Set Up and Annual Compliance

Requirements for Incorporation
• At least one shareholder
• At least one director that is a Singapore resident
• Company secretary who is a Singapore resident
• Paid-up capital
• Registered address

Incorporation Process
1. Company Name Approval
2. Company Registration

Annual Compliance Requirements
• Annual general meeting
• Filing of annual return

Double Taxation Agreement
• China-Singapore DTA entered into force on 18, September 2007
• Concept of Residence and “Permanent Establishment“ in DTA
• Main revenues covered by the DTA


< BACK TO LIBRARY

Recent Resources