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Best offshore company with Thai residency

disagree

disagree

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Aug 8, 2024
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#1
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I'm talking to many guys with residency in Thailand... and usually when I talk to these guys, they tell me their tax consultants made them incorporate a Hong Kong LTD instead of a US LLC.

There is a specific reason why getting a HK LTD is better than a US LLC with a Thai tax residency?
 
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#2
The US LLC is meant for US residents doing their family business. It creates various troubles in many countries as it can either be a transparent or intransparent vehicle.

I personally would not do it unless I have an underlying company. It really only makes sense in very limited cases, almost all of them are based on the country not enforcing PE rules. Who can recommend doing this?
 
#3
daniels27 said:
The US LLC is meant for US residents doing their family business. It creates various troubles in many countries as it can either be a transparent or intransparent vehicle.
Click to expand...
Yes, but I'm trying to understand in this exact situation why they prefer suggesting HK LTD over US LLC. As I don't see thailand vieweing the LLC as transparent... and also HK LTD having accounting requirements (= money for consultant) makes me think.
 
#4
I think it is not limited to Thai. Anybody of sound mind would recommend a Hong Kong or Singapore company over a US LLC. It simply bears much less risk.

Any to be honest, if I look at who all has such US LLC, it is only a matter of time until banking etc. becomes very reluctand to deal with those "companies" if you can even call it that.

Look at Amazon, you cannot even register your US LLC. You must then give the tax details of the underlaying vehicle including the personal address. Hence, I would never do this without a company below it. Otherwise, you can open a new Amazon account everytime you change your tax residency. Good luck!
 
#7
Amazon businesses have ECI anyway, so they always have to pay tax in the US.

I can't see how a HK or SG company would be less risk. You have the exact same PE issues.
HK and SG companies are only tax free if they are not resident where they are incorporated - but then were are they resident? It's pretty much the same issue.
 
#8
JustAnotherNomad said:
Amazon businesses have ECI anyway, so they always have to pay tax in the US.
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Why ECI? Are you paying taxes on your Amazon business?

JustAnotherNomad said:
I can't see how a HK or SG company would be less risk. You have the exact same PE issues.
HK and SG companies are only tax free if they are not resident where they are incorporated - but then were are they resident? It's pretty much the same issue.
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Then why you don't use US LLCs?
 
#10
I was just curious to understand why exactly a lot of people with residency in Thailand are getting HK LTD instead of other solutions…

I also agree with the PE issue that is not fixed having a HK or other one instead of a LLC.

I’m just curious why I can’t find a guy in Thailand with something else than a HK. If there is a specific reason
 
#11
Back in the day HK Ltd because of the following reasons.

- HK Doesn't do tax unless the business had income/revenues domestic.
- HK Didn't do reporting (pre-CRS)
- Thailand doesn't do CFC (offshore companies don't operate onshore just by you living there).
- HK Funds could be remitted to Thailand the following tax year tax free (then).

It was / is quite common in the hospitality/consulting sector (i.e in the business i was in, the GM got 150,000 THB onshore - which the company paid the taxes onshore, then additional 450,000 THB in HKD offshore in HK for consulting).

I can't really comment about now, it works out well if your business is straightforward (say consulting) but if its in other sectors you may have issues with the accounting requirements (i.e Grey Industries such as Crypto, Gambling, Pot etc)

Also factor in that Thailand has 'imprisoned' people for money laundering because their domestic laws are different to other countries and being made aware your funds are from activities which are legal elsewhere but illegal in Thailand is considered Money Laundering (Dutch / German guy i forget got sent to prison for 100 yrs for bringing his savings into Thailand from his pot business in Europe after the tax authorities enquired to ensure he paid the correct amount of taxes before coming to Thailand).

I would suggest Panama (if Crypto or derivative that involves Crypto) owned by Bahamas/HK company owned by yourself, for example, Panama does purely crypto, HK does Fiat, you get Fiat from HK Company.
 
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#12
What would be the problem if you had I.e. a Seychelles or UAE company (0% until a specific amount ) and just use it to make profits with 0% tax and just DONT get this amount in Thailand at all?

Do you need to get the profits / earned amount inside Thailand or not? That’s the first important question.

What type is your business? What type of consulting, if consulting?
 
#13
wellington said:
Back in the day HK Ltd because of the following reasons.

- HK Doesn't do tax unless the business had income/revenues domestic.
- HK Didn't do reporting (pre-CRS)
- Thailand doesn't do CFC (offshore companies don't operate onshore just by you living there).
- HK Funds could be remitted to Thailand the following tax year tax free (then).

It was / is quite common in the hospitality/consulting sector (i.e in the business i was in, the GM got 150,000 THB onshore - which the company paid the taxes onshore, then additional 450,000 THB in HKD offshore in HK for consulting).

I can't really comment about now, it works out well if your business is straightforward (say consulting) but if its in other sectors you may have issues with the accounting requirements (i.e Grey Industries such as Crypto, Gambling, Pot etc)

Also factor in that Thailand has 'imprisoned' people for money laundering because their domestic laws are different to other countries and being made aware your funds are from activities which are legal elsewhere but illegal in Thailand is considered Money Laundering (Dutch / German guy i forget got sent to prison for 100 yrs for bringing his savings into Thailand from his pot business in Europe after the tax authorities enquired to ensure he paid the correct amount of taxes before coming to Thailand).

I would suggest Panama (if Crypto or derivative that involves Crypto) owned by Bahamas/HK company owned by yourself, for example, Panama does purely crypto, HK does Fiat, you get Fiat from HK Company.
Click to expand...
Can confirm Panama. You now have to hand in some accounting docs to your agent, but overall the big pressure applied to Panama did not kill the company sector.
 
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#14
JackieTsan said:
What would be the problem if you had I.e. a Seychelles or UAE company (0% until a specific amount ) and just use it to make profits with 0% tax and just DONT get this amount in Thailand at all?

Do you need to get the profits / earned amount inside Thailand or not? That’s the first important question.

What type is your business? What type of consulting, if consulting?
Click to expand...
you best live like a typical beerbelly'd seggspat on his pension. Stay low. It highly looks like if they smell big (aka a few millis and up) cash, they will make up stuff to take it away from you.
It does not look good indeed.
 
#15
JackAlabama said:
you best live like a typical beerbelly'd seggspat on his pension. Stay low. It highly looks like if they smell big (aka a few millis and up) cash, they will make up stuff to take it away from you.
It does not look good indeed.
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Can you clarify please? I lost you in translation
Where would be the problem to have one (or more totally individual) companies and invoice directly the customer, and then just take the dividends to your name from this offshore company to your account offshore, and never remit the amounts in Thailand?
And live with your pension or other income in Thailand. What would be the problem?
I’m not talking about crypto or any illegal business, normal consulting business).
Would that create problem for Thailand having just one company (or more) in the structure : customer -> paying the company in Seychelles or UAE -> shareholder (you) getting the dividends to an account in HK or anywhere outside Thailand, and NEVER remit these money in Thailand? Thank you
 
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#16
JackieTsan said:
Can you clarify please? I lost you in translation
Where would be the problem to have one (or more totally individual) companies and invoice directly the customer, and then just take the dividends to your name from this offshore company to your account offshore, and never remit the amounts in Thailand?
And live with your pension or other income in Thailand. What would be the problem?
I’m not talking about crypto or any illegal business, normal consulting business).
Would that create problem for Thailand having just one company (or more) in the structure : customer -> paying the company in Seychelles or UAE -> shareholder (you) getting the dividends to an account in HK or anywhere outside Thailand, and NEVER remit these money in Thailand? Thank you
Click to expand...
it needs another residency that way.
 
#18
#20
JackieTsan said:
clear thank you so much! What if CRS still have previous country / countries? but some banks have the new one.. mixed..
Click to expand...
Then each country gets a bit. No big issue. Many banks also complimentary send CRS to your citizenship country. If you have no tax obligations there, they ignore it.
 
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