Company Formation Compared Internationally
Compare Hong Kong, Singapore, Dubai, USA, UK, Thailand, Philippines, Malaysia and Labuan by tax, ownership, banking, compliance and typical use, then choose the right route with Strasia.
Last updated: 10/2026
Fits if you are Asia-facing
Hong Kong and Singapore: remote formation, 100% foreign ownership, business across Asia.
Fits if you sell online
HK, SG and USA: common payment providers available; the provider decides on activation.
Fits if you plan a holding
HK, SG and Labuan are often used for holdings; tax at home depends on your residence.
Fits if you relocate
In Dubai and Singapore the company can be the basis for a residence application; the authority decides.
Fits if you serve the US market
A US LLC opens US payment rails, if the providers approve.
Fits if you work with European clients
A UK Ltd is registered online with Companies House, with no minimum capital.
Fits if you operate locally
Thailand, Philippines and Malaysia, if you hire staff or serve clients there.
| Criterion | Hong Kong | Singapore | Dubai (FZ) | USA | UK | Thailand | Philippines | Malaysia | Labuan |
|---|---|---|---|---|---|---|---|---|---|
| Corporate tax | 8.25–16.5% | 17% | 9% / 0%* | 21% (corporation); LLC: at owner level | 19–25% | 20% | 25% | 24% | 3% / 0% |
| Capital gains tax | 0% | 0% | 0% | Depends on state | 10–20% | 0%* | 0%* | 10% on unlisted shares | 0% |
| VAT / GST / SST | none | 9% GST | 5% | State Sales Tax | 20% | 7% | 12% | SST: 8% service, 5–10% sales | no SST in Labuan |
| 100% foreign ownership | Yes | Yes | Yes (FZ) | Yes | Yes | Restricted | Restricted | Yes | Yes |
| Local director / requirements | No | Yes (Resident Director) | No (FZ) | No | No | Thai majority shareholding (without BOI) | Local majority or USD 200,000 capital | No | No |
| Accounting burden | Medium (Audit) | Medium (XBRL) | Low | Low–Medium | Low–Medium | Medium–High | Medium–High | Medium | Medium (Audit) |
| Typical use | Asia trade, IP, holding | Asia HQ, SaaS, Fintech | Relocation with a change of residence | US market, e-commerce | EU credibility | Local operations | Local operations | ASEAN access | Holding, licensing |
| Good for holding | Yes | Yes | Possible | No | Possible | No | No | Possible | Yes |
| Good for relocation | Yes | Yes | Yes | Case-by-case | Case-by-case | Limited | Limited | Limited | No |
| Complexity | Low | Low | Low–Medium | Low | Low | High | High | Medium | Medium |
Data as of 15.10.2026. All information subject to change.
* Dubai: 0% only on qualifying income of a Qualifying Free Zone Person, otherwise 9% on profits above AED 375,000 (UAE Ministry of Finance). Capital gains tax 0% applies only to gains of a capital, not a trading, nature. Labuan: three percent on audited net profits from trading activity, 0% for non-trading, both only with substance on site. Your personal tax follows your residence.
Not sure which option fits?
Use the Strasia Pathfinder to get a guided first direction based on your goals, country preferences and business or residence plans.
Pathfinder StartWhich jurisdiction should you choose?
Which jurisdiction fits depends on your business model, clients, tax position, banking needs and residence plans.
Choose Hong Kong if…
…you are planning Asia trade, IP structures or a holding and need an account in Hong Kong. Hong Kong levies no capital gains tax; what applies at home depends on your residence and place of management.
Choose Singapore if…
…you are building an Asia HQ, SaaS or Fintech and need banking and payment in Singapore.
Choose Dubai if…
…you want to combine company formation and relocation: through the free zone company you can apply for a residence visa, which the authorities decide on, and under current rules the UAE levies no personal income tax. What applies to you for tax purposes depends on whether you actually move your residence.
Choose USA if…
…you serve the US market, need US payment or want an LLC for e-commerce or SaaS.
Choose UK if…
…you want a UK company for European clients, online formation and the common payment providers.
Choose Thailand if…
…you are building local operations in Thailand and are prepared to meet local participation requirements.
Choose Philippines if…
…you plan local business operations in the Philippines and meet the capital requirements.
Choose Malaysia if…
…you are looking for ASEAN access, moderate costs and 100% foreign ownership.
Choose Labuan if…
…you want to build a holding, licensing or treasury structure with a preferential tax regime and can provide the substance in Labuan.
Common mistakes when choosing a company jurisdiction
Comparing only corporate tax
Low CIT does not automatically mean low total costs. Accounting, audit, compliance and banking costs vary significantly.
Ignoring accounting burden
In some jurisdictions, annual compliance effort is significant: audit, XBRL, local tax returns.
Ignoring banking reality
Each bank runs its own checks, and requirements differ by country and business model. Before incorporating, ask the bank in writing which documents it needs for your business model.
Not checking payment processing
Stripe, PayPal and other providers are not available in every jurisdiction. Before incorporating, check the provider’s country list to see whether your company’s seat is supported.
Underestimating substance requirements
Some jurisdictions require local directors, offices or employees for tax benefits.
Not considering founder residence
Your tax residence helps decide which jurisdiction fits you.
Using one company for the wrong business model
Holding, trading, e-commerce and consulting have different requirements for jurisdiction and structure.
The Key Options
Hong Kong Incorporation
Limited company: 8.25–16.5% profits tax on Hong Kong-sourced profits, no capital gains tax, online formation with the Companies Registry.
Singapore Incorporation
Pte Ltd with 17% CIT (exemptions for new companies), 9% GST and a resident director as a requirement.
Dubai Incorporation
Free Zone LLC: 9% CIT on profits above AED 375,000, special rules for qualifying free zone income, 5% VAT, 100% foreign ownership and the option of a residence visa.
USA Incorporation
LLC, usually taxed at owner level (corporation: 21% federal tax); US payment rails if the providers approve.
UK Incorporation
Ltd with 19–25% CIT, 20% VAT and online formation with Companies House.
Labuan Incorporation
Labuan company: taxed at three percent on audited profits from Labuan trading activity, subject to substance requirements; 100% foreign ownership and a preferential regime for holding and licensing.
Hong Kong on your shortlist? Tax, annual duties, banking and the question of who the company does not suit are brought together in our guide Hong Kong company: tax, duties, banking.
More depth on two further options: what a Singapore Pte. Ltd. pays in corporate tax in 2026 and which return a foreign-owned US LLC files with the IRS every year.
Frequently Asked Questions
Which country is right for company formation?
Is the lowest corporate tax always the right choice?
Which jurisdiction fits e-commerce?
Which jurisdiction fits holding structures?
Which countries allow 100% foreign ownership?
What should I consider before choosing Hong Kong or Singapore?
Is Dubai better for relocation or company setup?
When does a US company make sense?
When does Labuan make sense?
Can Strasia compare jurisdictions before incorporation?
Can Strasia handle accounting after incorporation?
Should I use Pathfinder before choosing?
Which jurisdiction fits?
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