Solutions · Trading & Investment

Trading & Investment: Structure by residence and strategy

Stocks, ETFs, digital assets and precious metals can be held in one company in Hong Kong, Singapore or Labuan. Hong Kong and Singapore levy no general capital gains tax; but anyone who trades regularly can make trading gains that are taxable there. The IRD and IRAS decide case by case, and what applies at home depends on your residence and place of management.

Pathfinder

Trading & Investment:
Structure by residence and strategy

TaxesBy residence & activity

JurisdictionsHK · SG · Labuan

RegulationStrictly regulated

Asset ClassesStocks · ETFs · crypto · metals

Last updated: 10/2026

Overview

When an investment company abroad makes sense for traders and investors

Whether you trade short-term, invest long-term or combine both: the company structure affects how your gains are taxed, which brokers accept you and how you separate risks.

A Hong Kong or Singapore company can hold stocks, bonds, ETFs, digital assets, precious metals and real estate, including several asset classes in one company. Hong Kong and Singapore levy no general capital gains tax. For active traders, however, the distinction matters: gains from regular trading can count as trading gains and then be subject to profits tax in Hong Kong or corporate income tax in Singapore. Whether a gain is capital or trading in nature is decided by the IRD and IRAS on the facts of each case, such as the intention at the time of purchase. How much tax is ultimately due also depends on residence, place of management and documentation.

The platforms and brokers at these locations are regulated: licensed financial service providers supervised by the local authorities. That lowers the risk of dubious providers, but it does not protect against market losses.

For larger wealth we support account opening with private banks in Singapore, Liechtenstein and Switzerland; the bank decides whether to take you on. Through Labuan a holding or trading company is also possible: Labuan trading activity is taxed at three percent on audited profits, provided the Labuan substance requirements are met.

Typical Profiles & Situations

Active trader (stocks, futures)

Trades daily or weekly and needs a structure in which it is clear up front whether the gains are taxed as trading gains, plus access to professional brokers.

Digital asset investor

Holds and trades digital assets and needs a company structure with access to regulated platforms and a clear view of whether gains count as capital or trading gains.

Long-term investor with diversified portfolio

Invests in stocks, ETFs, bonds and precious metals and needs a consolidated structure that fits the investor's residence.

Real estate investor

Holds real estate through company structures and needs a holding that manages the property ownership cleanly.

Entrepreneur with investment portfolio

Runs an operating business, invests in parallel and needs a structure that cleanly separates operations and investment.

Wealthy individual needing private banking

Has larger wealth and is looking for a private bank in Singapore, Liechtenstein or Switzerland.

Capital, trading and investment activity should be reviewed before problems appear

Trading and investment activity can create tax, reporting, banking and documentation consequences depending on residence, asset type, holding structure and transaction flow. Generic online advice is often too simple for serious capital or cross-border trading activity. Strasia helps review the situation privately and identify suitable, compliant structuring options before decisions become difficult to unwind.

Common Risks & Hidden Complexity

Capital or trading gain: the classification is missing

Anyone who trades frequently can make taxable trading gains in Hong Kong or Singapore, even though there is no general capital gains tax there. The circumstances decide, such as the intention at the time of purchase (the so-called badges of trade). If this is not clarified up front, questions from the IRD or IRAS follow later.

Restricted broker access

Many professional brokers and exchanges do not accept retail clients from certain countries. A company can make access to professional platforms easier; each broker reviews the application itself.

Regulation and platform security

Those who trade on unregulated platforms risk their capital. We work exclusively with regulated brokers and platforms in Hong Kong, Singapore and other recognized financial centers.

No separation of operating and investment assets

Mixing operations and investments in one company risks investment assets if operational problems arise. The right structure separates both cleanly.

Popular Structures & Setups

Hong Kong Investment Company

No capital gains tax in Hong Kong; gains from regular trading can, however, be subject to profits tax as trading gains, which the IRD reviews case by case. Access to regulated brokers and exchanges after their own review. What applies at home depends on residence and place of management.

Singapore Investment Pte. Ltd.

No general capital gains tax; whether a gain is capital or trading in nature is decided by IRAS case by case. Access to regulated platforms after their own review. A director ordinarily resident in Singapore is mandatory. What applies at home depends on your residence.

Labuan Investment Company

Labuan trading activity is taxed at three percent on audited profits, provided the Labuan substance requirements are met; pure non-trading activity such as holding investments is treated separately under Labuan tax law. Licensed forex and crypto broking runs under the LFSA. Fits holding and investment companies with an international focus.

Labuan

Private Bank Access (SG, CH, LI)

For larger wealth: support with account opening at private banks in Singapore, Switzerland and Liechtenstein with professional wealth management; the bank decides whether to take you on.

SGCHLI

Digital Asset Structure

Corporate account at regulated platforms through an HK or SG company. Digital assets held long-term fall under no capital gains tax in HK and SG; anyone trading them can make taxable trading gains (IRD, DIPN 39; IRAS, e-Tax Guide on digital tokens). What applies at home depends on your residence.

HKSG

Hybrid: Operations + Investment

Holding structure that cleanly separates operations and investment. Hong Kong and Singapore levy no withholding tax on dividends paid to the holding; how distributions to you are taxed at home depends on your residence.

HKSG

A trading or investment company in Hong Kong is still a limited company with an annual audit, tax return, company secretary and local registered office. How these fit together is explained in our guide: the Hong Kong company, from tax to bank account.

Our Trading & Investment Package

Company formation in HK, SG or Labuan for investment companies

Support with opening broker accounts at regulated platforms (Interactive Brokers, Saxo, etc.)

Access to digital asset platforms through regulated providers

Support with account opening at commercial and private banks

Introductions to providers of precious metal storage and Lombard loans

Tax classification (capital or trading gain) and compliance

Ongoing bookkeeping and tax returns

Structure advisory: cleanly separate operations vs. investment

Our Process

Initial Consultation & Strategy Analysis

60 Min.

We analyze your investment strategy, asset classes and residence. Short-term, long-term or hybrid? Operations and investment? This determines the right structure.

Company Formation

Depends on country

Formation of your investment company in the right jurisdiction, including all registrations and compliance. The authority sets the timeline; we tell you the current state in the call.

Broker & Banking Setup

Guided

Support with account opening at brokers, exchanges and banks; they decide on acceptance themselves. For larger wealth also private banks in SG, CH or LI.

Ongoing Support

Ongoing

Bookkeeping, tax returns and regular structure review, so it keeps fitting your strategy and residence.

Frequently Asked Questions

Are the brokers and exchanges regulated?

Yes, we work exclusively with regulated platforms in Hong Kong, Singapore and other recognized financial centers. That lowers the risk of dubious providers; it does not protect against market losses.

Can I combine multiple asset classes in one company?

Yes, a Hong Kong or Singapore company can hold stocks, digital assets, precious metals, real estate and other assets simultaneously.

From what wealth level do I get access to private banks?

Each private bank sets its own minimum, and it changes. We tell you the current thresholds of the banks that are relevant to you in the call.

What is a Labuan structure?

Labuan is a separate international business and financial centre with its own tax law for Labuan companies. Labuan trading activity is taxed at three percent on audited profits, provided the Labuan substance requirements are met; pure non-trading activity such as holding investments is treated separately. If the company is managed from Germany, Austria or Switzerland, it may be taxable there.

How are digital asset gains taxed?

It depends on whether you hold or trade. Hong Kong and Singapore levy no general capital gains tax, so gains from digital assets held long-term are generally not taxable there. Anyone trading them can make trading gains that are subject to profits tax in Hong Kong and corporate income tax in Singapore. The IRD (DIPN 39) and IRAS (e-Tax Guide on digital tokens) decide on the circumstances, such as the intention at the time of purchase. What applies in your country of residence is a separate question.

Can I also hold real estate through the company?

Yes, a Hong Kong or Singapore company can hold real estate in different countries. Tax implications depend on the property location, but the holding structure offers additional protection and flexibility.

What is the difference between short-term and long-term investment setup?

For active traders, fast broker access, low transaction costs and the question of whether gains are taxed as trading gains matter most. For long-term investors, the focus is on classification as a capital investment, private banks and separating operating and investment assets. Hybrid forms are possible.

Check your investment structure in a call

Free initial consultation: 60 minutes, no obligation.

Wealth Protection HK Incorporation SG Incorporation E-Commerce Labuan company formation

Our Office

Contact our Hong Kong Team

Tell us what it is about: company formation, accounting and tax, or a visa. You will hear from us within one business day.

Strasia Group · Hong Kong

Office

Unit 1005, 10/F, Boss Commercial Centre
28 Ferry Street, Yau Ma Tei
Kowloon, Hong Kong

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