At Encor, we help companies navigate these jurisdictions with tailored structuring and compliance solutions, ensuring that your business is not only set up correctly but positioned for sustainable international growth.
Wherever your next venture takes you—Dubai, Hong Kong, Singapore, or all three—the opportunities for global expansion have never been greater.
Expanding a business internationally is not just about reaching new customers—it’s about choosing the right hub that offers stability, opportunity, and a favorable operating environment. Dubai, Hong Kong, and Singapore consistently rank as top destinations for entrepreneurs and investors. Each has its own advantages, from tax benefits to strategic location. But which one should host your next venture? Let’s compare these three global business hubs across tax policies, company formation, and economic climate.
Dubai: The Middle East’s Gateway
Dubai has established itself as the region’s commercial capital, bridging Asia, Africa, and Europe. The city offers world-class infrastructure, investor-friendly regulations, and a multicultural business environment.
- Corporate Tax: The UAE applies corporate tax at 9% on taxable profits above AED 375,000, with income below that threshold taxed at 0%. Qualifying free zone entities may continue to benefit from a 0% corporate tax rate, provided they meet specific conditions under the Free Zone Person regime. Large multinationals may also be subject to minimum top-up taxes under international rules.
- Other Taxes: There is no personal income tax, no capital gains tax, and a VAT of 5% on most goods and services.
- Company Formation: Entrepreneurs can choose between mainland and free zone setups. Free zones allow 100% foreign ownership, simplified processes, and sector-specific benefits. Mainland companies, on the other hand, offer wider access to the UAE market.
- Strategic Value: Dubai’s position between East and West, combined with advanced logistics and a pro-investment climate, makes it especially attractive for businesses targeting international expansion.
Ideal for: Companies seeking tax-efficient structures, global connectivity, and access to the Middle East and Africa.
Hong Kong: The Financial Powerhouse
Hong Kong remains one of the world’s most prominent financial centers, renowned for its simple tax system and open economy.
- Corporate Tax: Hong Kong levies a profits tax of 16.5% for corporations. Under the two-tier system, the first HKD 2 million of profits is taxed at a reduced rate of 8.25%, making it appealing for small to medium enterprises.
- Other Taxes: Hong Kong does not impose VAT, capital gains tax, or withholding tax on dividends and interest. Only certain royalties and payments to non-residents are subject to limited withholding.
- Company Formation: Businesses are incorporated through the Hong Kong Companies Registry, with an efficient online system that allows foreign entrepreneurs to establish companies remotely.
- Strategic Value: Despite recent shifts in its geopolitical landscape, Hong Kong continues to be a vital link to mainland China, offering access to Chinese markets while retaining an internationally recognized legal and financial framework.
Ideal for: Businesses focused on finance, trading, and leveraging proximity to China.
Singapore: Asia’s Innovation Hub
Singapore has consistently ranked among the world’s easiest places to do business, offering political stability, strong rule of law, and a pro-innovation environment.
- Corporate Tax: The standard corporate income tax rate is 17%, though various exemptions and incentive schemes reduce the effective tax rate for many companies. Start-ups may qualify for a tax exemption scheme on a portion of their profits during the first three years.
- Other Taxes: Singapore’s Goods and Services Tax (GST) is currently 9%, effective since January 2024. There is no capital gains tax.
- Company Formation: Company incorporation is managed digitally through the Accounting and Corporate Regulatory Authority (ACRA). The process is efficient, transparent, and designed to facilitate international participation.
- Strategic Value: Positioned at the heart of Southeast Asia, Singapore has a strong focus on technology, finance, and innovation. Its numerous double taxation treaties further support businesses engaged in international trade.
Ideal for: Tech-driven start-ups, innovation-focused firms, and companies seeking a strong base in Southeast Asia.
Comparing the Three
When deciding between Dubai, Hong Kong, and Singapore, entrepreneurs should weigh several factors:
- Tax Systems:
- Dubai: 0% up to AED 375,000; 9% beyond. Free zone entities may remain at 0% under conditions.
- Hong Kong: 8.25% on first HKD 2M profits, 16.5% thereafter.
- Singapore: 17% headline rate, with exemptions and start-up relief.
- Ease of Company Formation:
- Dubai offers free zones and mainland setups.
- Hong Kong and Singapore both offer efficient digital incorporation systems.
- Strategic Positioning:
- Dubai bridges East and West, ideal for global trade.
- Hong Kong links directly to mainland China.
- Singapore anchors Southeast Asia and fosters innovation.
Final Thoughts
Dubai, Hong Kong, and Singapore each present strong cases for entrepreneurs and investors. The decision ultimately depends on your business goals: whether it’s tapping into emerging markets via Dubai, accessing China through Hong Kong, or building in a high-tech ecosystem like Singapore. With their distinct advantages, these hubs remain at the forefront of global business expansion.