GuideMeSingapore

Singapore has topped the list of 183 economies as the world’s easiest place to do business, for the fourth year in a row, as per the World Bank’s “Doing Business Report 2010“. The survey ranks economies based on 10 indicators ranging from ease of starting a business, getting credit, employing workers, paying taxes, trading across borders and paying taxes to closing a business.

It is interesting to note that Singapore’s closest competitor Hong Kong’s rank has consistently fallen a step or two behind that of Singapore’s in the past four years. Given Hong Kong’s status as a matured financial centre and its popularity as an offshore jurisdiction, one would naturally assume that it would out beat Singapore. But clearly, Hong Kong has lost its edge and no longer has what it takes to be the best place in the world for doing business.

While the World Bank has its own set of parameters against which both the countries have been scored, we have also done our own analysis of Singapore Vs Hong Kong. Here are some interesting footnotes:

• Company registration in Singapore takes less than a day whereas it can take 4-7 days in Hong Kong.
• Singapore’s corporate income tax rate of 17% is almost the same as Hong Kong’s 16.5%. However, Singapore has very generous tax exemption for annual profits of first S$300,000 which is taxed at a reduced tax rate of approximately 8.5%.
• Singapore has more than 70 bilateral tax treaties while Hong Kong has a DTA network of about 37 treaties

Clearly, there is a very thin line that sets both the countries apart. In order to retain top rating, a country has to consistently reform and reinvent itself. It’s all about staying ahead by that one extra step to race to the top. At present, Singapore leads the pack.

Interested in doing business in Singapore? Find out how to setup a Singapore company.