Top Benefits of Starting a Business in Singapore for Hong Kong Entrepreneurs

For decades, both Singapore and Hong Kong have stood as powerful financial and trade hubs in Asia. However, in recent years, Singapore has increasingly become the preferred destination for many Hong Kong entrepreneurs looking to expand, diversify, or even relocate their businesses. With its political stability, low taxes, and world-class infrastructure, Singapore offers an exceptional business environment that is both welcoming and strategic.

This article explores the top benefits of starting a business in Singapore for Hong Kong entrepreneurs, highlighting the practical, financial, and lifestyle advantages that make the Lion City a natural choice for growth-minded business owners.

1. Political Stability and Predictable Governance

One of Singapore’s greatest strengths is its political stability. The government is transparent, efficient, and consistently pro-business. There are clear regulations, minimal corruption, and a long-standing reputation for fairness in governance.

For Hong Kong entrepreneurs accustomed to the city’s once highly predictable system, Singapore offers a similar — and arguably more secure — environment. The government’s commitment to the rule of law ensures that businesses can operate with confidence, free from abrupt regulatory changes or political uncertainty.

2. Strategic Gateway to ASEAN and Beyond

Singapore’s location in the heart of Southeast Asia gives it direct access to a regional market of over 600 million consumers. From here, entrepreneurs can easily expand into fast-growing economies such as Indonesia, Vietnam, Thailand, and Malaysia.

With world-class connectivity via Changi Airport and its seaport — one of the busiest and most efficient in the world — Singapore serves as a key logistics and distribution hub for trade across Asia-Pacific.

For Hong Kong entrepreneurs, this means immediate proximity to new opportunities, while maintaining a similar level of global accessibility and sophistication that they are used to.

3. Attractive and Transparent Tax System

Singapore’s tax regime is consistently ranked among the most competitive in the world. The corporate income tax rate is capped at 17%, with partial exemptions and incentives for start-ups that can significantly reduce the effective rate.

New companies enjoy tax relief through the Start-Up Tax Exemption Scheme (SUTE), and there is no capital gains tax or dividend tax.

In addition, Singapore has signed over 90 Double Taxation Agreements (DTAs), including with Hong Kong, ensuring entrepreneurs don’t face double taxation on income.

For Hong Kong entrepreneurs familiar with low-tax systems, Singapore’s transparency, stability, and fairness in tax administration make it an equally — if not more — attractive base.

4. Ease of Company Incorporation

Singapore consistently ranks among the top three countries in the world for ease of doing business, and setting up a company is remarkably straightforward. Through the Accounting and Corporate Regulatory Authority (ACRA), incorporation can be completed online in as little as one working day.

Foreigners can own 100% of their company, and the minimum paid-up capital requirement is just SGD 1. The entire process is streamlined, digital, and requires minimal red tape — ideal for Hong Kong entrepreneurs used to fast-paced business environments.

The simplicity of the process encourages business formation, allowing entrepreneurs to focus on operations and growth rather than bureaucracy.

5. World-Class Financial Centre

Like Hong Kong, Singapore is a leading international financial hub. Over 150 global banks operate in the city-state, offering a wide range of corporate banking, investment, and trade finance services.

The Monetary Authority of Singapore (MAS) regulates the financial system with a perfect balance of prudence and innovation. Entrepreneurs can easily open multi-currency accounts, manage international transactions, and access capital markets.

For Hong Kong’s seasoned financiers and investors, Singapore provides a familiar level of sophistication, coupled with stronger regulatory stability and investor confidence.

6. Robust Legal System and Intellectual Property Protection

Singapore’s legal framework is based on English common law, ensuring predictability and transparency in commercial matters. The judiciary is independent, and the enforcement of contracts is efficient.

The Intellectual Property Office of Singapore (IPOS) offers one of the strongest IP protection regimes in Asia, ranking high in global IP indexes. For Hong Kong entrepreneurs in technology, design, or manufacturing, this provides essential protection for innovation and intellectual property assets.

Dispute resolution in Singapore is also globally recognized, with institutions such as the Singapore International Arbitration Centre (SIAC) serving as trusted venues for cross-border cases.

7. Open Economy and Global Trade Agreements

Singapore’s economy thrives on global trade. It has one of the most open economies in the world and enjoys numerous Free Trade Agreements (FTAs) with key markets.

As a member of ASEAN, RCEP (Regional Comprehensive Economic Partnership), and other global economic partnerships, Singapore offers seamless access to both developed and emerging economies.

For Hong Kong entrepreneurs seeking to diversify away from dependency on limited markets, Singapore provides direct entry into Asia’s most dynamic trade networks — all within a trusted international framework.

8. Government Support and Business Incentives

The Singapore government actively supports business formation, innovation, and overseas expansion through a wide range of incentive schemes and funding programs.

Key initiatives include:

• Enterprise Development Grant (EDG): Helps companies innovate and expand internationally.

• Market Readiness Assistance (MRA) Grant: Supports businesses exploring overseas markets.

• Productivity Solutions Grant (PSG): Co-funds the adoption of digital solutions and automation.

Hong Kong entrepreneurs setting up in Singapore can take advantage of these grants to offset costs, particularly if they’re bringing new technologies, processes, or regional expertise to the market.

9. Skilled and Multilingual Workforce

Singapore’s workforce is highly skilled, efficient, and multilingual — fluent in English, Mandarin, and several regional languages.

For Hong Kong entrepreneurs, this makes business communication seamless while providing valuable language capabilities for reaching ASEAN markets. The government’s ongoing investment in education and digital training ensures a continuous supply of qualified professionals in technology, finance, engineering, and management sectors.

The workforce’s adaptability and professionalism mirror the high standards found in Hong Kong, making it easy for business owners to maintain quality operations.

10. Thriving Innovation and Technology Ecosystem

Singapore is at the forefront of innovation in Asia. Government-backed initiatives like Smart Nation and Digital Economy Framework for Action promote widespread technology adoption.

The city-state is home to numerous innovation hubs such as JTC LaunchPad and Block71, where entrepreneurs, venture capitalists, and researchers collaborate on cutting-edge projects.

For Hong Kong start-ups and technology firms, this ecosystem offers funding opportunities, global partnerships, and access to a community of like-minded innovators. Singapore’s start-up culture rivals that of Silicon Valley — but with stronger institutional support and lower operational risks.

11. Transparent Immigration and Visa Policies

Singapore’s immigration system makes it easy for foreign entrepreneurs and professionals to relocate. The EntrePass is designed specifically for innovative foreign entrepreneurs establishing a business in Singapore.

Other relevant visa options include the Employment Pass (EP) for professionals and the Dependant Pass (DP) for family members.

These well-structured visa pathways ensure Hong Kong business owners can smoothly relocate their families and teams, ensuring continuity in leadership and management during expansion.

12. Excellent Infrastructure and Digital Connectivity

Singapore’s infrastructure is world-class — from transport to telecommunications. The Port of Singapore is a key hub for global trade, and Changi Airport consistently ranks as one of the best in the world for connectivity and efficiency.

On the digital side, Singapore offers one of the fastest internet speeds globally, extensive 5G coverage, and a fully digitalized government system.

These capabilities ensure that businesses, whether in logistics, finance, or digital services, can operate seamlessly and efficiently.

13. Quality of Life and Safety

Beyond its business appeal, Singapore provides one of the best living standards in the world. The city-state is clean, green, and safe, with low crime rates and excellent healthcare facilities.

Hong Kong entrepreneurs relocating with their families will find a comfortable transition, with access to top-tier international schools, world-class housing, and a cosmopolitan lifestyle.

Its balance of professional opportunity and quality living makes Singapore ideal for long-term residence and business leadership.

14. Focus on Sustainability and Green Growth

Singapore has positioned itself as a leader in sustainability with its Green Plan 2030, encouraging businesses to adopt eco-friendly practices and invest in renewable energy.

For Hong Kong entrepreneurs in industries such as green tech, environmental consulting, or energy efficiency, Singapore offers both funding and partnership opportunities. The government’s emphasis on green innovation aligns well with global environmental trends and corporate sustainability goals.

15. Expanding Network of International Entrepreneurs

Singapore is home to a diverse and vibrant business community. Thousands of entrepreneurs, investors, and corporations from around the world have established operations here.

Hong Kong entrepreneurs will find it easy to integrate into this global network through organizations like the Hong Kong–Singapore Business Association, Enterprise Singapore, and various chambers of commerce.

These platforms provide networking opportunities, partnerships, and valuable insights into regional business dynamics — helping entrepreneurs build relationships that drive long-term success.

Conclusion

For Hong Kong entrepreneurs, Singapore offers everything needed to build a sustainable and globally connected business — stability, simplicity, and opportunity.

Its transparent tax system, supportive government, skilled workforce, and strategic location make it a natural extension for entrepreneurs seeking to diversify operations, expand into new markets, or relocate headquarters.

Singapore combines the efficiency of Hong Kong with even greater political stability and access to ASEAN — providing the perfect environment for future growth.

Starting a business in Singapore isn’t just a relocation; it’s a strategic evolution — one that positions Hong Kong entrepreneurs for success in the new era of global business.