Where to create a company : comparaison and over view of Europe UAE Singapore Hong kong
- Jan 7, 2025
- 6 min read
Choosing the Right Jurisdiction for Your Business
One of the most consequential decisions when expanding internationally or looking to create a company is choosing where to incorporate. The right jurisdiction affects your tax exposure, access to banking, visa options, market credibility, and the administrative burden you carry year after year.
This guide compares four of the most popular jurisdictions for international business formation: Europe (focusing on key incorporation hubs), the UAE, Singapore, and Hong Kong. Each offers distinct advantages depending on your business model, target markets, and personal circumstances.
Europe
Europe is not a single jurisdiction, but several European countries stand out as popular incorporation destinations for international entrepreneurs and holding structures.
Key European Hubs
United Kingdom: A well-recognised common law system, fast and inexpensive incorporation, no minimum share capital. Corporate tax is 19-25% depending on profits. Banking can be challenging for non-residents.
Ireland: Common law, 12.5% corporation tax on trading income, full EU member, English-speaking. Well-established for tech and pharmaceutical holding structures. Requires a resident director.
Netherlands: Civil law, 19-25.8% corporation tax, strong double tax treaty network, widely used for European holding companies. The BV structure is the most common vehicle.
Cyprus: EU member, 12.5% corporate tax, no withholding tax on dividends in many scenarios, popular for holding intellectual property and financial assets.
Malta: EU member, effective corporate tax rate as low as 5% through the shareholder refund system, strong for gaming and financial services licensing.
Best For
Businesses targeting EU customers or requiring EU regulatory compliance, companies seeking a well-recognised Western legal framework, and holding structures for European assets or intellectual property.
United Arab Emirates
The UAE has transformed itself into one of the world's leading business hubs, offering a combination of zero personal income tax, a growing network of free zones, and improving access to international banking.
Mainland vs Free Zone
Mainland companies: Can trade directly within the UAE and with government entities. Most activities now allow 100% foreign ownership following 2021 reforms, though some sectors retain local partner requirements.
Free zone companies: 100% foreign ownership, historically zero corporate tax within the zone. Restricted from trading directly on the UAE mainland without a local distributor or agent.
Key Considerations
UAE corporate tax introduced in June 2023 at 9% on taxable profits above AED 375,000. Free zones may still benefit from a 0% rate if they meet qualifying conditions under the new regime.
Banking has improved significantly but KYC requirements are stringent, especially for non-residents
Residency visas are available for company owners and employees, making the UAE attractive for relocation
Strong international transport links and a growing professional services ecosystem
Best For
Entrepreneurs relocating to the region, businesses targeting Gulf markets, trading companies, and individuals seeking a zero personal income tax environment alongside their business registration.
Singapore
Singapore is widely regarded as Asia's premier international business hub. It combines political stability, a strong rule of law, an extensive double taxation treaty network, and a genuinely business-friendly regulatory environment.
Key Features
Corporate tax rate: 17% on chargeable income, with a partial exemption scheme that effectively reduces the rate to around 8.5% on the first SGD 200,000 of chargeable income for qualifying companies
No capital gains tax and no dividend withholding tax for most distributions
Fast incorporation in 24 to 48 hours online, with minimal share capital requirements
Requires at least one locally resident director, who must be a Singapore citizen, permanent resident, or EntrePass holder
Strong banking infrastructure with major global and regional banks represented
Entrepreneur Pass and Employment Pass allow foreign founders and employees to obtain residency
Best For
Companies targeting Southeast Asia or with Asian investors and partners, businesses that benefit from Singapore's extensive treaty network, and founders who want a credible and stable Asian base that is internationally recognised.
Hong Kong
Hong Kong remains one of the most business-friendly jurisdictions in the world, with a simple tax system, low rates, and a strategic position at the gateway to mainland China.
Key Features
Profits tax: 8.25% on the first HKD 2 million of assessable profits, 16.5% above that
No VAT, no capital gains tax, no dividend withholding tax, no estate duty
Territorial tax system: offshore income not sourced from Hong Kong is generally not taxable
Fast and inexpensive incorporation, no minimum share capital requirement
No requirement for a local director, non-residents can hold all director positions
World-class banking infrastructure, though account opening for non-residents has become more selective in recent years
Unique access to mainland China through its status as a Special Administrative Region
Best For
Businesses with operations in or trade with mainland China, holding companies for Asia-Pacific assets, companies seeking a low-tax territorial system with no VAT burden, and entrepreneurs who want maximum flexibility with minimal local presence requirements.
Side-by-Side Comparison
Corporate Tax Rate
Hong Kong leads with 8.25-16.5%, followed by Singapore at an effective 8.5-17% for most companies, Ireland and Cyprus at 12.5%, and the UAE at 0-9% depending on the structure. UK rates are 19-25%, with other European jurisdictions ranging more broadly depending on the entity type.
VAT and Indirect Tax
Hong Kong has no VAT or GST. The UAE applies 5% VAT on mainland businesses, with many free zone activities still exempt. Singapore applies GST at 9%. EU countries apply VAT typically between 20-25%, and the UK applies 20% VAT.
Local Director Requirement
Singapore and Ireland require at least one locally resident director. Hong Kong, the UAE free zones, and most other European jurisdictions do not impose this requirement for foreign-owned companies.
Ease of Banking
Singapore and Hong Kong offer the strongest international banking infrastructure, though both have tightened KYC requirements significantly. The UAE has improved considerably. European banking varies widely by country and institution.
Access to China
Hong Kong is uniquely positioned with direct regulatory and trade links to mainland China through the CEPA framework, the Greater Bay Area initiative, and cross-border banking arrangements. No other jurisdiction in this comparison offers comparable China access.
How to Decide Whether to Create a Company
The right jurisdiction depends on your specific situation. Consider the following questions:
Where are your customers and suppliers? Choose a jurisdiction that facilitates those commercial relationships without unnecessary friction.
Do you need residency or a visa? The UAE and Singapore offer clearer paths to residency for business owners.
Is mainland China central to your operations? Hong Kong is the natural choice.
Do you need EU market access or EU regulatory approval? A European entity will likely be necessary.
What is your personal tax situation? If you are relocating, the UAE's zero personal income tax may be a compelling factor.
Many international businesses use a combination of jurisdictions, for example a Hong Kong operating company with a Singapore or Irish holding structure, to optimise across multiple criteria simultaneously.
Frequently Asked Questions, Choosing a Jurisdiction for Company Formation
Can I incorporate in one country and live in another?
Yes. In most cases there is no requirement to live in the country where your company is incorporated. However, some jurisdictions require a locally resident director, and tax authorities in your country of residence may apply local tax rules to your company if they determine it is effectively managed and controlled from there.
Is it legal to use an offshore company structure to reduce taxes?
Yes, provided the structure is genuine and not purely artificial. International tax planning is legal and widely practised. However, tax authorities increasingly apply substance requirements, meaning companies must have real economic activity in the jurisdiction where they claim tax residency.
How do I open a bank account for a foreign-incorporated company?
This varies by jurisdiction and bank. Singapore and Hong Kong have the broadest range of banking options for non-resident businesses, though KYC requirements are stringent. The UAE has improved. European banks are generally more restrictive for non-EU-resident clients. Working with a specialist corporate banking advisor can significantly improve the success rate of account applications.
Do I need to visit the country to incorporate?
For most jurisdictions, incorporation can be completed remotely using a local agent or company secretarial firm. Some banks, however, require in-person account opening, particularly in Hong Kong and Singapore.
What is the difference between a holding company and an operating company?
A holding company owns assets such as shares, intellectual property, or property, but does not actively conduct business itself. An operating company carries out commercial activities. Many international structures use a holding company in a low-tax jurisdiction to own shares in one or more operating companies in other countries.
Not sure which jurisdiction is right for your business? ASC Consulting advises on international company formation across Europe, the UAE, Singapore, and Hong Kong.