Thai/farang Limited Partnership

[phuketnick]

Hi all,

Just a few questions regarding setup of a Thai/Farang Limited Partnership and hope someone can clarify these points for me.....

_{Do I only need one person for a Thai / Farang Thai Limited Partnership company??}

_{If so can be just anyone or not? I have been told If I was married to a Thai I could setup such a company between us easily??}

_{I am not married to a Thai so do Farang’s who are not married normally have to setup a company with 3 nominee’s ??}

_{I am not certain about what options might be open to me.}

I've been told so many different things by different people and just want to know what the rules are...

Any help or advice much appreciated

[MonPengCarabao]

You only need one Thai, it needs to be someone you trust as with a LP as opposed to a Co Ltd the Foreigner cannot be a designated signatory.

The split has to be 70/30 for the shares, you only need 1 million baht capitalisation if you are married to the partner to obtain a workpermit with a LP.

More here

http://www.integrity-legal.com/company-tha...artnership.html

Edited September 15, 2009 by MonPengCarabao

[phuketnick]

Ok thanks for the info butwhat if I'm not married to the partner do the same rules apply??

[MonPengCarabao]

If not married 2 million baht capitalisation required for work permit

[simon43]

POhuketnick - note my reply in your other thread. Phuket Labour Office will not issue a WP to a 'farang' in a LP. They insist that the business be a ltd company.

Simon

[CWMcMurray]

Good Point Simon....

Even though "The Law" allows for a WP to be issued for an LP, please be sure to check with your local Labor office and be sure to get their confirmation prior to forming the Partnership. Otherwise you may be in for a very rude awakening if they will not issue a WP.

Just like every other government agency, each local office may have their own rules or interpretation of the rules that may vary from the actual law as it is written.

[phuketnick]

Good Point Simon....

Even though "The Law" allows for a WP to be issued for an LP, please be sure to check with your local Labor office and be sure to get their confirmation prior to forming the Partnership. Otherwise you may be in for a very rude awakening if they will not issue a WP.

Just like every other government agency, each local office may have their own rules or interpretation of the rules that may vary from the actual law as it is written.

Thanks again for the advice guys

Have just checked with the Phuket Labour Office and the guy there said I can apply for WP with either LP or Co,.Ltd so it seems they must change the rules as and when they feel like it....do you think I should I get written confirmation from the Labour Office about this just as a safe guard?

[simon43]

Maybe he just took a dislike to me

Simon

[tombkk]

Good Point Simon....

Even though "The Law" allows for a WP to be issued for an LP, please be sure to check with your local Labor office and be sure to get their confirmation prior to forming the Partnership. Otherwise you may be in for a very rude awakening if they will not issue a WP.

Just like every other government agency, each local office may have their own rules or interpretation of the rules that may vary from the actual law as it is written.

Thanks again for the advice guys

Have just checked with the Phuket Labour Office and the guy there said I can apply for WP with either LP or Co,.Ltd so it seems they must change the rules as and when they feel like it....do you think I should I get written confirmation from the Labour Office about this just as a safe guard?

You don't need a written confirmation, as it's written in the law. Just apply for the WP. If they reject it based on the company being an LP rather than a Co., Ltd., ask them to check with Bangkok.That's faster and more efficient than showing them the law and discussing with them locally. It's not up to the Labour Department in Phuket, it's up to the national regulations. Phuket has no freedom to decide, they have to follow the law. Don't pay any tea money. Be sure to be present when they call to Bangkok and if you don't understand enough Thai, have your Thai business partner with you.

[Sunbelt Asia]

Dear Nick,

A disadvantage of setting up a limited partnership are that the Director must be Thai, meaning that as a foreigner you will not be able to open a business bank account. The other complication relates to the Non-Immigrant business visa and work permit. The labour office may opt to issue only a 90 day work permit as opposed to a one year. In this instance your Non-Immigrant business visa would follow suit and need to be renewed every 90 days. A Thai limited company is an option that you may wish to consider as you will be able to obtain a work permit and can be a Director in the company.

For more information on the company set up process, please contact Sunbelt Asia for a free consultation at your convenience on 02-642-0213.

Best regards,

Legal Advisor

Sunbelt Asia Co. Ltd

www.sunbeltasia.com

[email protected]