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Company registration in Hong Kong and residence in Thailand
Company registration in Hong Kong results in the creation of a legal entity governed by the Companies Ordinance (Cap. 622), which is fully independent from the personal residence of its shareholders or directors. This means that a foreign entrepreneur may legally incorporate and operate a Hong Kong company while living in Thailand, including under the new Destination Thailand Visa (DTV). However, this legal separation between the company and the individual does not eliminate the regulatory obligations arising in the country where the management activity is physically exercised.
From a Hong Kong perspective, the company remains a Hong Kong tax resident only if its profits arise in or are derived from Hong Kong within the meaning of Section 14 of the Inland Revenue Ordinance (Cap. 112). From a Thai perspective, the entrepreneur’s physical presence in Thailand triggers immigration, labour, and tax consequences, regardless of where the company is incorporated.
This interaction means that a company registration in Hong Kong does not, by itself, authorise the director or shareholder to perform professional activities from Thailand. Under Thai law, the place where work is performed is decisive. Even when clients, invoices, and bank accounts are outside Thailand, the activity is legally considered to take place in Thailand if the individual carries it out while physically present there.
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Table of Contents
Why Hong Kong remains the preferred jurisdiction for entrepreneurs based in Thailand
Legal and tax efficiency of company registration in Hong Kong
Despite this complexity, company registration in Hong Kong remains one of the most efficient legal structures for entrepreneurs living in Thailand. Hong Kong offers a rare combination of legal stability, international recognition, and a territorial tax system that exempts profits generated outside Hong Kong when properly structured.
The case law and long-term Inland Revenue Department practice treat profits as subject to Hong Kong tax only if the activities that generate the profits take place here. As such, this would enable a Hong Kong company providing services to overseas customers on the basis of contracts negotiated, entered into, and performed outside Hong Kong to apply for offshore tax treatment. This is especially appealing for freelancers working from anywhere in Thailand to clients and customers in Europe, the US, or Asia.
Also, Hong Kong offers easy access to a strong banking system, international payments, and a stable legal framework. Unlike most offshore jurisdictions, a Hong Kong company is not considered a tax haven, which makes it much easier for incorporation companies to secure banking, payment processing, and international counterparties.
The DTV Visa and operating a Hong Kong company from Thailand
Scope of the DTV visa
The Destination Thailand Visa (DTV) is part of the new visa measures introduced by the Thai government, allowing long-term stays (up to 180 days per entry, with a multiple-entry visa valid for 5 years) for categories such as remote workers, digital nomads, and freelancers. This regime is formally included in Thailand’s official new visa scheme as published by the Ministry of Foreign Affairs, which lists “Remote Workers/Digital Nomads/Freelancers” among the eligible categories for the DTV.
DTV limitations under Thai labour law
However, the DTV is not a work permit. Under the Foreigners’ Working Management Emergency Decree B.E. 2560 (2017), any activity that produces income or economic value while physically in Thailand is considered work. This applies even when the employer or company is located abroad.
- Illustration: A foreign entrepreneur owns a Hong Kong company that serves only overseas clients. All contracts and payments are handled through Hong Kong. However, the entrepreneur lives in Bangkok under a DTV visa and manages the business, signs contracts, and communicates with clients from Thailand. Under the Foreigners’ Working Management Emergency Decree B.E. 2560 (2017), these activities qualify as “work” because they generate economic value while physically performed in Thailand, even though the company is foreign.
Company registration in Hong Kong and Thai work qualification
Why foreign companies do not bypass Thai labour law
A common mistake is to assume that because the company is foreign, Thai labour law does not apply. This is legally incorrect, under Section 8 of the Foreigners’ Working Management Emergency Decree B.E. 2560 (as amended), no foreigner shall work without a valid work permit, and engaging in work without one exposes the individual to fines, deportation, and other penalties.
If a director or consultant of a Hong Kong company performs operational or managerial functions while residing in Thailand, those activities may require a work permit unless covered by a specific visa exemption.
Rising enforcement risks
This risk is particularly high for entrepreneurs who run their Hong Kong companies actively from Thailand. Even if all invoices are issued from Hong Kong, and clients are overseas, the Thai authorities focus on where the work is physically carried out. Immigration audits increasingly target foreigners working online from Thailand under tourist or lifestyle visas.
Therefore, a properly structured company registration in Hong Kong must be accompanied by a compliant immigration and work status in Thailand, especially when using the DTV as the residence basis.
Taxation of a Hong Kong company when the director lives in Thailand
Dual Tax exposure
The interaction between Thai tax law and Hong Kong tax law is one of the most sensitive aspects of this structure. Hong Kong applies a territorial tax system, while Thailand taxes individuals who spend more than 180 days per year in the country on their worldwide income. Under Section 41 of the Thai Revenue Code, “any person staying in Thailand for a period or periods aggregating 180 days or more in any tax year shall be deemed a resident of Thailand” for tax purposes. This residency status triggers Thai personal income tax obligations, including on income earned abroad that is brought into Thailand, under the global tax residency rules.
Management and income risks
This layering creates two tiers of exposure. Firstly, if the management of the Hong Kong company is conducted from Thailand, the Thai Revenue Department may contend that a permanent establishment or effective management exists in Thailand. Second, the director could find himself individually liable to tax in Thailand for salaries, dividends, or management fees paid to him by his Hong Kong company.
Any Hong Kong company formation, therefore, needs to be complemented by meticulous profit modelling, management reporting, and contractual arrangements if the business is to minimise exposure to Thai tax.
- Example: A director forms a Hong Kong company that bills foreign clients. But he resides in Bangkok on a DTV visa and oversees contracts, invoicing, and commercial decisions from there. In such circumstances, the Thai Revenue Department may argue that management and profit generation will indeed take place in Thailand and that it constitutes a PE of the foreign entity, to be taxed in Thailand. On the other hand, if the director spends more than 180 days in Thailand in a year, he will become a Thai tax resident, and salary or dividends paid by a Hong Kong company may be subject to Thai tax.
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Legal risks of improper structuring in company registration in Hong Kong
Various risks are associated with doing so when a Hong Kong firm operates in Thailand without proper legal planning. These comprise Thai immigration breaches, unreported employment, the risk of a permanent establishment, and the loss of Hong Kong offshore tax status. Entrepreneurs are routinely slapped with back-tax assessments, visa cancellations, or even account freezes when banks or authorities detect discrepancies between declared structures and their actual operations.
Best practices for Hong Kong–Thailand structuring
In practice, a compliant Hong Kong–Thailand structure is built on three pillars.
First, the company registration in Hong Kong must reflect real commercial substance under the Companies Ordinance (Cap. 622), including directors, contracts, banking and accounting records that demonstrate where profits are generated for the purposes of Section 14 of the Inland Revenue Ordinance (Cap. 112).
Second, the individual’s activities in Thailand must be mapped against the scope of permitted activity under the Foreigners’ Working Management Emergency Decree B.E. 2560 (2017) and the relevant visa regime, including the DTV, so that managerial or operational tasks performed from Thailand do not create an immigration or labour law breach.
Third, income flows from the Hong Kong company must be structured in accordance with Thai tax residency rules under Section 41 of the Revenue Code to avoid unintended taxation of salaries, dividends, or management fees.
When these three elements are aligned, a company registration in Hong Kong becomes a legally stable platform for entrepreneurs living in Thailand, rather than a source of regulatory risk.
Key legal risk factors for entrepreneurs in Thailand
For entrepreneurs operating through a Hong Kong company registration while residing in Thailand, the main legal risks arise from four cumulative failures that directly trigger regulatory exposure.
First, performing management, sales, or operational activities from Thailand without proper authorisation constitutes illegal work under the Foreigners’ Working Management Emergency Decree B.E. 2560 (2017), which exposes the individual to administrative fines, visa cancellation, blacklisting, and removal from Thailand.
Second, misclassifying income received from a Hong Kong company as foreign or non-taxable while being physically present in Thailand may lead to reassessment and penalties under Section 41 of the Thai Revenue Code, since Thai tax residents are taxable on worldwide income once the 180-day threshold is exceeded.
Third, failure to properly declare Thai tax residency and offshore income exposes you to back-tax assessments, surcharges, and criminal penalties under Sections 37 and 90 of the Revenue Code. Finally, operating a Hong Kong company without real decision-making, documentation, and economic substance outside Thailand risks both the loss of offshore tax status under Section 14 of the Hong Kong Inland Revenue Ordinance (Cap. 112) and the creation of a permanent establishment or place of effective management in Thailand, allowing the Thai Revenue Department to tax the company’s profits locally. When these risks accumulate, entrepreneurs face not only financial exposure but also serious immigration and banking consequences that can destabilise the entire structure.
Immigration and Corporate Interaction
Thai immigration law focuses on where the activity is physically performed, not on where the company is incorporated. Under the Immigration Act B.E. 2522 (1979), particularly Sections 12, 37 and 38, Thai authorities may cancel or refuse a stay if a foreigner breaches the conditions of his visa, even if income is earned through a foreign company. A company registration in Hong Kong, therefore, does not override Thai visa rules.
At the same time, the Foreigners’ Working Management Emergency Decree B.E. 2560 (2017) defines work very broadly as any activity that creates economic value. A director or consultant of a Hong Kong company who manages operations, signs contracts, or provides services while physically in Thailand is legally considered to be working in Thailand, regardless of where clients or bank accounts are located.
In practice, immigration increasingly cross-checks visa status with banking and corporate data under the Anti-Money Laundering Act B.E. 2542 (1999) and KYC obligations. When income linked to a company registration in Hong Kong appears inconsistent with a person’s visa status, authorities may cancel the stay, deny extensions, or order departure, making immigration compliance a central part of any Hong Kong–Thailand structure.
- E.g: A French entrepreneur holds a Destination Thailand Visa (DTV) and owns a company registered in Hong Kong. All invoices are issued by the Hong Kong company, and all clients are in Europe. From Bangkok, he negotiates contracts by email, signs agreements, and manages staff through video calls. During a visa extension, Thai immigration requests his bank statements under the Immigration Act B.E. 2522 (1979) and KYC rules. They see regular payments from a Hong Kong company. Because he is actively managing and operating the business while physically in Thailand, this is legally classified as work under the Foreigners’ Working Management Emergency Decree B.E. 2560 (2017). Since the DTV is not a work permit, his stay may be cancelled, and he can be required to leave Thailand, even though the company itself is fully compliant in Hong Kong.
Why legal planning is essential for company registration in Hong Kong
A Hong Kong-registered comA Hong Kong-registered company is only advantageous if it is set up from the outset in accordance with Thai tax, labour and immigration law.ng, profits are calculated by reference to the provisions under Section 14 of the Inland Revenue Ordinance (Cap. 112) and Thailand, the place in which the person is present (both geographically and economically) according to the Revenue Code and Immigration Act B.E. 2522 (1979). These two lines of development must be synchronised to prevent inadvertent exposure.
Without proper structure, the entrepreneur could face Thai tax obligations and work permit requirements under the Foreigners’ Working Management Emergency Decree B.E. 2560 (2017), with potential implications for his offshore status in Hong Kong. By virtue of this legal planning, the Hong Kong company, the visa , and the income flows constitute a single compliant structure rather than separate factors.
Conclusion
Living in Thailand under a DTV while operating a Hong Kong company is not only legally possible but can also be highly efficient and commercially powerful when structured correctly. The combination of Thailand’s flexible residence options and Hong Kong’s internationally respected corporate and tax framework gives entrepreneurs access to global banking, stable company law, and a territorial tax system that remains one of the most attractive in Asia.
The key is not to avoid the law, but to use it properly. When corporate governance, tax residency, profit sourcing, and immigration status are aligned from the outset, a company registration in Hong Kong allows entrepreneurs based in Thailand to operate internationally with legal certainty, financial predictability, and long-term sustainability. What may appear complex at first is in reality a strategic opportunity for those who structure it with foresight and legal discipline.
FAQ
Yes. The Companies Ordinance (Cap. 622) imposes no nationality or residency restrictions on shareholders or directors. A Hong Kong company may be fully owned and managed by foreigners, even if they reside in Thailand. Thai residence does not affect the legal ownership of a Hong Kong company.
No. A company registration in Hong Kong remains governed exclusively by Hong Kong law. However, if the company is effectively managed from Thailand, Thai tax and regulatory authorities may treat part of the activity as occurring in Thailand, thereby creating additional compliance obligations.
The DTV allows a long-term stay in Thailand but does not automatically authorise work. Under the Foreigners’ Working Management Emergency Decree B.E. 2560 (2017), performing business activities for a Hong Kong company while physically in Thailand may constitute work and require authorisation. Therefore, it should be aligned with Thai immigration law.
The company remains subject to Hong Kong profits tax under Section 14 of the Inland Revenue Ordinance (Cap. 112). However, if management and decision-making take place in Thailand, Thai authorities may assert that part of the profits is connected to Thailand. This risk must be managed through proper corporate structuring and documentation.
Yes, but only if the profit-generating activities are genuinely conducted outside Hong Kong. The place where you live does not determine taxation. What matters is where contracts are negotiated, where services are performed, and where commercial decisions are made.
Under Cap. 622, every Hong Kong company must have a registered office in Hong Kong. A physical business office is not legally required unless commercial operations are conducted there. However, economic substance and management location are relevant for tax and compliance purposes.
Thai authorities cannot regulate the Hong Kong company itself, but they can review the activities of its directors or consultants in Thailand. Immigration, tax, and labour law enforcement increasingly rely on cross-border financial and corporate data.
If you stay more than 180 days per year in Thailand, you may become a Thai tax resident and may be taxable on worldwide income, including salaries or dividends received from your Hong Kong company.
Yes. Banks in Hong Kong assess the real place of management and compliance risks. If the structure appears inconsistent with Thai immigration or tax compliance requirements, accounts may be restricted or closed.
Yes, when properly structured. A Hong Kong company provides international credibility, banking access, and tax efficiency. However, it must be combined with a compliant Thai residence and work framework to remain legally sustainable.