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- US LLC vs Singapore vs Hong Kong for Bali Freelancers
US LLC, Singapore or Hong Kong for Freelancers in Bali (2026)
- Published: 11 November 2026
- 11 min read
- Foreigner's Guide, Company Registration
Ruth Dsouza
Author
Ruth Dsouza Prabhu is a content developer with a passion for turning ideas into clear, engaging narratives. Drawing on her experience in marketing communications and lifestyle writing, she simplifies complex business topics for entrepreneurs. Her work spans strategy, storytelling, and thought leadership, delivering content that is credible, practical, and impactful.
Deepti Laddha
Reviewer
Deepti Laddha is Head of Corporate Operations at Osome and an expert contributor to our content. With more than a decade of experience in corporate services, she brings deep operational knowledge and practical business insights. Deepti helps translate complex concepts into clear, actionable guidance, enabling entrepreneurs to better understand business requirements and focus on growth.
Imran Marican
Reviewer
Imran Marican, ATA SCTP member, is a Corporate Tax Assistant Manager and reviewer at Osome. With nearly a decade of experience in corporate tax, he focuses on verifying the accuracy and compliance of tax-related content. Drawing on his expertise in tax regulations and compliance requirements, Imran helps ensure readers receive reliable, practical insights that support informed business decisions.
Choosing between a United States limited liability company (US LLC), Singapore or Hong Kong is a common decision for foreign freelancers and agency owners in Bali in 2026. Many set up a US LLC because others in their coworking space have one, then find yearly US filings they did not expect. This guide compares the three on clients, banking, tax and filings so the choice fits the business.
Key Takeaways
- A foreign-owned single-member US LLC must file Form 5472 with a pro forma Form 1120 each year, and a missed filing carries a USD 25,000 penalty.
- Singapore suits freelancers with Asian clients, with a 17% headline rate, but a company managed from Bali usually qualifies only for the partial tax exemption.
- Hong Kong taxes only profits sourced in Hong Kong, at 8.25% on the first HKD 2 million, and suits work tied to Hong Kong or mainland China.
- Managing a company from Bali can raise tax questions for the business in Indonesia, depending on how and where key activities and decisions take place.
Choosing a Company Structure as a Freelancer in Bali
The right company for a freelancer in Bali is the one that matches where clients sit, works with banks reachable from Bali, and has filings the founder can keep up with remotely. Tax rates matter, but these three practical points usually decide the choice first.
Before comparing jurisdictions, it helps to answer these questions:
- Where are most clients based, and do they prefer to contract with a company in a particular country?
- Which business accounts can be opened and run online from Bali?
- Does the business plan to hire, take on partners, or raise investment?
- Who will handle annual filings, and in which time zone are the deadlines?
Banking is often the deciding factor. In Singapore, the Aspire Account Opening Integration with Osome lets founders apply for a business account during incorporation. Approval of the account is always the bank's decision. Receiving client payments into an Indonesian bank account, or in Bali, can create Indonesian tax, so keep business income in the company's own accounts.
Day-to-day admin matters as much as set-up. How global founders are running companies from their AI assistant explains how the Osome MCP lets founders invoice clients, file receipts, and check reports from Claude, or from paid plans of ChatGPT and Gemini.
US LLC Obligations for a Non-US Owner
A US LLC owned by one foreign individual is usually treated as a disregarded entity for US federal tax, and it still carries annual filing duties. If the LLC has no US trade or business, it generally owes no US federal income tax, and its profits are taxed in the owner's country of residence.
A foreign-owned single-member LLC has these yearly obligations:
- A registered agent in the state where the LLC was formed
- Form 5472 with a pro forma Form 1120, due by 15 April, or 15 October with a Form 7004 extension
- State fees and reports, such as the annual tax a Delaware LLC pays by 1 June
Form 5472 is required even without income if the owner made reportable transactions with the LLC, such as funding it or paying its costs. Missing it carries a USD 25,000 penalty per form per year, plus USD 25,000 for each additional 30 days once 90 days have passed after an Internal Revenue Service (IRS) notice. Singapore vs Delaware compares the two for founders planning to raise money.
Comprehensive company incorporation
Incorporate your company and get an Osome corporate secretary to ensure you comply with laws and regulations from the get-go.
Singapore for Freelancers with Asian Clients
Singapore fits freelancers and agencies whose clients are in Asia, or who plan to hire or raise money in the region. The headline corporate tax rate is 17%, and in its first three years, a qualifying company pays an effective rate of about 6.4% on its first SGD 200,000 of chargeable income under the Start-Up Tax Exemption (SUTE).
A Singapore company needs at least one director who is ordinarily resident in Singapore, a company secretary, and a local registered address. Each year, it holds an annual general meeting (AGM) within six months of its financial year-end and files an annual return with the Accounting and Corporate Regulatory Authority (ACRA) within seven months. It also files Estimated Chargeable Income (ECI), unless waived, and a corporate tax return by 30 November.
SUTE only applies while the company is tax resident in Singapore, which depends on its board taking strategic decisions there. A company controlled and managed from Bali will usually qualify only for the Partial Tax Exemption (PTE), which exempts 75% of the first SGD 10,000 and 50% of the next SGD 190,000. For worked figures, see how much tax you can save by incorporating in Singapore.
For a freelancer whose clients are in Asia, Singapore removes the yearly guesswork. The filings are predictable. A company controlled and managed from Bali is unlikely to be a Singapore tax resident, though, so it will usually qualify only for the partial tax exemption.
Corporate Tax Assistant Manager
A foreign founder can incorporate in Singapore without moving there. Osome's nominee director service provides the locally resident director a Singapore company needs, and the packages for foreigners include a registered address and company secretary.
Hong Kong for Freelancers with China-Facing Work
Hong Kong fits freelancers and agencies whose clients, suppliers or partners are in Hong Kong or mainland China. Profits tax is charged at 8.25% on the first HKD 2 million of assessable profits and 16.5% above that, and only profits sourced in Hong Kong are taxed.
Profits earned from work carried out outside Hong Kong can be treated as offshore, but this is not automatic. The company must claim it and show the Inland Revenue Department (IRD) where its profit-generating work takes place. For a founder working from Bali, that evidence points to Indonesia, which can raise tax questions for the company there, depending on how and where key activities and decisions take place.
A Hong Kong company can have a foreign director, but its company secretary must live in Hong Kong or be a Hong Kong-based firm. It files an annual return within 42 days of each incorporation anniversary and has its accounts audited every year by a Hong Kong certified public accountant, which adds cost compared with Singapore.
US LLC vs Singapore vs Hong Kong Comparison
The three options differ most in tax on early profits, the local officers they need, and the work involved each year. The table sets out the main points for a foreign freelancer in Bali in 2026.
Point | US LLC (single-member, foreign owner) | Singapore private limited company | Hong Kong private limited company |
|---|---|---|---|
| Tax on company profits | Usually no US federal tax without a US business; taxed in the owner's country | 17%; about 6.4% on the first SGD 200,000 for three years under SUTE if managed from Singapore, otherwise PTE | 8.25% on the first HKD 2 million, 16.5% above; offshore profits can be exempt |
| Local officer needed | Registered agent | Resident director and company secretary | Hong Kong company secretary |
| Main yearly filings | Form 5472 and pro forma Form 1120; state report or tax | AGM, ACRA annual return, ECI unless waived, corporate tax return | Profits tax return, annual return |
| Audit | Not required | Exempt for small companies | Required every year |
| Osome set-up package, from | Not offered | SGD 3,772 for the most basic fully compliant package, including a nominee director for 1 year and accounting; running costs from around SGD 3,800 a year | HKD 8,950 with a registered address (HKD 4,650 without), excluding accounting; audit is a separate service from HKD 6,488 a year |
Osome prices are as at November 2026 and exclude optional add-ons. At USD 1 = SGD 1.2795 (26 October 2026) and USD 1 = HKD 7.8445 (29 October 2026), the packages start from about USD 2,948 in Singapore and about USD 1,141 in Hong Kong with a registered address. The Real Cost of Running a Singapore Company breaks down the yearly fees after incorporation.
Company Choice by Industry for Bali Freelancers
The type of work often points to one option, because clients and payment platforms in each industry expect different things. The table gives a starting point by business type, to be checked against the founder's own clients and plans.
Business type | Usual fit | Main reason |
|---|---|---|
| Creative or marketing agency with clients in Asia | Singapore | Regional clients and staff contracts sit naturally with a Singapore company |
| Software as a service (SaaS) selling mainly to US customers | US LLC, or Singapore if raising in Asia | US customers and payment platforms are used to US entities; Asian investors prefer Singapore |
| Ecommerce sourcing from mainland China | Hong Kong | Supplier payments and trade links run through Hong Kong |
| Consulting for clients in several regions | Singapore | Predictable filings and a wide tax treaty network |
| Business type | Usual fit | Main reason |
| Creative or marketing agency with clients in Asia | Singapore | Regional clients and staff contracts sit naturally with a Singapore company |
| Software as a service (SaaS) selling mainly to US customers | US LLC, or Singapore if raising in Asia | US customers and payment platforms are used to US entities; Asian investors prefer Singapore |
| Ecommerce sourcing from mainland China | Hong Kong | Supplier payments and trade links run through Hong Kong |
| Consulting for clients in several regions | Singapore | Predictable filings and a wide tax treaty network |
This is general guidance. A founder's own client contracts, plans to raise money, and personal tax position in Indonesia should decide the final choice.
Comprehensive company incorporation
Incorporate your company and get an Osome corporate secretary to ensure you comply with laws and regulations from the get-go.
The Process of Moving from a US LLC to Singapore or Hong Kong
Moving from a US LLC to a Singapore or Hong Kong company means setting up the new company first and closing the LLC only once clients and payments have moved. Running both for a short overlap avoids gaps in invoicing.
The usual sequence is:
- Incorporate the new company and appoint its director and company secretary
- Open a business account and connect payment platforms to it
- Sign new contracts with clients in the new company's name and invoice from it
- Move domains, software subscriptions, and other business assets to the new company
- File the LLC's final Form 5472 and pro forma Form 1120 for its last tax year
- Dissolve the LLC with its state and close its registered agent service
If the LLC holds valuable assets or intellectual property, take tax advice before moving them, since a transfer can be taxable in more than one country.
The first year of a new company sets the pattern for every filing after it. Osome's accounting services keep the books from day one and prepare the ECI, corporate tax return, and annual return, so the switch from a US LLC does not create new missed deadlines.
How Osome Can Help
Freelancers and agency owners in Bali often pick a company structure quickly and only learn its yearly obligations later, from a penalty notice or a bank request. Osome sets up Singapore companies for foreign founders online, with a nominee director, registered address, and company secretary included in its packages for foreigners.
Osome's accountants then handle bookkeeping, ECI, the corporate tax return, and the ACRA annual return, and claim the start-up exemption where the company qualifies. Founders moving from a US LLC get one team for the new company's set-up and compliance, so they can focus on clients instead of deadlines in another time zone.
Summary
Start from where clients and investors are, then check which option the founder can run properly from Bali. A US LLC can work for US-facing businesses if its filings are kept up. Singapore suits Asia-facing freelancers and agencies with growth plans, and Hong Kong suits work tied to mainland China.
Whichever option is chosen, keep evidence of where decisions are made and keep personal tax in Indonesia under review, since a company does not change where the founder is resident. Personal tax treatment depends on the law, controlled foreign company rules, and treaties of the country where the founder lives, so get tax advice for that country.
Ruth Dsouza Prabhu is a content developer with a passion for turning ideas into clear, engaging narratives. Drawing on her experience in marketing communications and lifestyle writing, she simplifies complex business topics for entrepreneurs. Her work spans strategy, storytelling, and thought leadership, delivering content that is credible, practical, and impactful.
