Best Strategy For Consultant To Receive Payments From Us Corporation?

[rylemano]

Hello,

I’m in Thailand for an amount of time that can only be determined by my ability to generate revenues.

My previous employer located in the USA (let’s call it CorpUS) wants to award me a few contracts totaling 20K U.S. dollars at first, probably more later. I would remotely execute these contracts from Thailand.

I’d like to set up an consulting firm in Asia in order to receive payments from CorpUS. I’m not sure where’s the best place to create a legal business entity: Singapore, Hong-Kong, Malaysia or simply Thailand? The idea is to minimize taxes, bring down operating cost (accounting, legal costs, etc..), pass on expenses to the firm and simplify the transfer of money to a bank account in Thailand.

If someone has been through this process before, I’d be very grateful if you could point me toward the right direction.

Thanks,

[roiethome]

I set up my own consultancy last year. Singapore offers many incentives and was best place for my requirements. If you like more details [lease EM to me.

[imjmn]

Hello,

I’m in Thailand for an amount of time that can only be determined by my ability to generate revenues.

My previous employer located in the USA (let’s call it CorpUS) wants to award me a few contracts totaling 20K U.S. dollars at first, probably more later. I would remotely execute these contracts from Thailand.

I’d like to set up an consulting firm in Asia in order to receive payments from CorpUS. I’m not sure where’s the best place to create a legal business entity: Singapore, Hong-Kong, Malaysia or simply Thailand? The idea is to minimize taxes, bring down operating cost (accounting, legal costs, etc..), pass on expenses to the firm and simplify the transfer of money to a bank account in Thailand.

If someone has been through this process before, I’d be very grateful if you could point me toward the right direction.

Thanks,

Best check out the banking requirements in Thailand. Transfer of funds into the country is easy but more difficult to transfer out. Opening an account is Thailand if you have the proper visa is easy - at other times it is a pain and at times up to the branch manager regardless of the official rules. You can check various posts here in the ThaiVisa forums for more info.

I have had very good service from HSBC Singapore and no hassle to open the account. I have made many transfers into Thailand and the USA from Singapore and no issues. In Singapore you will find that they will follow the rules set. They are much more business like and sensible than Thailand.

MJ

[tpkhk]

Certainly no expert on this - but a few points if it helps.

Setting up a company in Singapore can probably be done in a couple of days or less. Lots of Accountant/Incorporation service companies around. I have used a firm called Rikvin in Singapore.

You'll need a Company Setup with a Resident Nominee Director, if you yourself have no plans to be based out of there.

Singapore has a relatively low corp tax structure - 17% or so is the top tax rate. Pls verify.

Limited liability company will require annual filings - accounting, minutes etc, registered address in SGP so there are some maintenance charges. Several hundred $/year.

The first S$100K of profit in each of your first 3 years of incorporation are not taxed. Pls verify if this incentive is still available.

You can choose to Bill your customer via the Singapore entity in US$ and open a US$ account in Singapore - if you don't want to subject yourself to Forex impact.....

You may need to go out to Singapore once to open the bank account, otherwise, much of the above can be done without being physically present.

HKG is very similar, but could end up costing more for the maintenance of your company, even if the tax rate is lower. HKG offers some advantages if your business involves China.

Technically, going by the book - if you are physically based in Thailand and doing the work whilst here, the authority here could claim that it is a taxable event in Thailand....even if you bill via your Singapore entity.... something you'll need to figure out with the local experts.

[chiang mai]

Contact Nelson Wheeler in Hong Kong, a Big 4 subsidiary and ask to use Seamex, a legally established payments vehicle designed exactly for the purposes you require. I have no affiliation with Nelson Wheeler other than I have used them internationally for the past twenty years, without problem. Cost effective and efficent and 100% legit provided HK companies are not involved in issuing payments.

[WhiteShrek]

If you're actually doing the work in Thailand you should be paying tax in Thailand. Tax rates for personal tax and corporate tax here are relatively steep. Singapore and HK have lower rates.

What many people do is set up a company in HK with a registered address there, open a bank account, and have any payments made to that company which of course isn't strictly legal.

[Soutpeel]

If you're actually doing the work in Thailand you should be paying tax in Thailand. Tax rates for personal tax and corporate tax here are relatively steep.

And of course you would require a work permit as well for Thailand...

[Valjean]

It may not be worth your trouble but I set up a Thai and HK company (Singapore would have worked just as well). Thai company meets all of my work permit and tax requirement - and I have Thai employees so really it's a must have. HK has advantages for a number of reasons that made me not want everything to flow through Thailand. If nothing else just easier with less paperwork...

Putting aside WP, legal and tax issues HK or Singapore is a better bet - but those are huge issues to "put aside" especially if you want to stay here.