How to Move Your Company from Hong Kong to Singapore

Hong Kong loses the title as the free market of the world

If you are currently in Hong Kong, you may want to move your company to Singapore. Unfortunately, there is no point in discussing Hong Kong’s recent problems further. Apart from politics, the facts the world needs to see are clear. Hong Kong has already lost its status as the world’s freest economy. Billions of assets have been transferred to the safe haven, Singapore.

Mainland China pays little attention to Hong Kong’s economy in terms of its overall objectives. Investors and companies will consider the possibility of protecting their investments by moving away from the insecurity of Hong Kong.

Why move your company to Singapore from Hong Kong?

The obvious choice for an alternative Asian hub is of course Singapore. Singapore has just overtaken Hong Kong as the world’s freest economy. Both Singapore and Hong Kong have many inherent advantages as investment centers. To name a few – minimal bureaucracy, low oversight and, clear tax systems.

Of course, relative equality is shifting now as Hong Kong’s profitability as a safe haven for foreign investment deteriorates. This makes Singapore a safer alternative.

Transferring assets and investment from Hong Kong to Singapore may seem overwhelming. However, the process is actually very simple, even if it is becoming increasingly urgent. Let’s take a look at your choices for moving your company from Hong Kong to Singapore.

Note that in order to meet the requirements of the Singapore Accounting and Companies Regulatory Authority (ACRA), you must work with a credible Singapore Company Incorporation service provider. This is of course a good thing. The service provider can help make the process as quick and easy as possible and assist you in this process.

The first thing you can do is revisit your decision to choose the best organizational framework to move your company from Hong Kong to Singapore. Although Singapore greatly encourages incorporation into the best possible environment, there are undoubtedly positive and negative factors for everyone.

When choosing a business structure in Singapore, there are three main options.

Option 1: Establish a parent company in Singapore

This choice allows you to establish a company in Singapore. It will act as the parent company for your Hong Kong business. In due course, until the transition is complete, you will establish a second, separate company in Singapore. It will serve as the primary operating company for your business for the long term.

Firstly, your second long-term business in Singapore will be wholly owned by your original parent company in Singapore. You can transfer your interest to your Hong Kong company over time. You can then, in your spare time, encourage a transfer of assets from your Hong Kong company to your Singapore company.

The advantage of this option is that you can keep your business in Hong Kong alongside your business in Singapore. If developments are catastrophic for your Hong Kong business, the operational reins can be taken over by your companies in Singapore. All of these will provide strong legal protection during the transition period.

When all business operations have been transferred from your Hong Kong company to your Singapore company, your Hong Kong company will be closed and removed from the registry. You can then continue your business in Singapore under your original parent company in Singapore. You can also close the parent company to have an independent business.

Option 2: Establish a parent/subsidiary company in Hong Kong

This alternative is almost the opposite of the previous option. This is because the parent company is based in Hong Kong and not in Singapore. However, it is still possible to establish the operating company in Singapore. You can then gradually transfer the business from the original Hong Kong company to the new Singapore company.

When the transition is complete, both the original Hong Kong company and the Hong Kong parent company could be closed.

The main advantage of this choice is that work permits and visas for Singapore will be easier to obtain if the new company in Singapore is a subsidiary of a foreign parent company.

Option 3: Convert the existing Hong Kong company into a parent company

This choice allows your existing Hong Kong company to be the parent company of your new Singapore company. Otherwise, the mechanism is similar to the first option. Your new company in Singapore design to mimic your original Hong Kong organization for the business transfer.

This is preferable because it is much easier. If your project in Hong Kong goes wrong, you will not have so many legal remedies available.

Where to Next to Move Your Company from Hong Kong to Singapore

The urgency of your move your company from Hong Kong to Singapore is your choice. It is our responsibility to meet your needs and guide you through what will undoubtedly be a fundamental change in your operation.

Over the past decade, Singapore has always been considered the easiest place to start and run a business. According to the World Bank’s Doing Business 2020 report, Singapore ranks second out of 190 economies when it comes to business facilitation. Therefore, incorporating a company in Singapore is a brilliant idea, as it is expected to become the world’s private banking hub in the coming years.

Even if you have no concrete plans to reduce Hong Kong’s current operational risks, we invite you to explore with us your options for moving to a stable and prosperous Singapore.

In this article we have tried to provide as much free information as possible. If you have any questions about the specifics of moving your business from Hong Kong to Singapore, please do not hesitate to get in touch with HeySara.

With our large team of lawyers, bankers and human resources specialists, we have been doing this for a long time. Thus, we are sure to save you time, money and hassle.

Also read related post: How to Use Xero in 13 Easy Steps

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