Setting Up A Compay

[Rossi]

After reading a lot in this forum I have a much better view on the topic, but there are still some open points which I couldn't find an answer to.

1) If I need a work permit for myself in a private limited company the registered capital of at least 2 million baht. Thereof 20% = 400.000 baht must be payed in. If no work permit is required 1 million might be enough, that is 200.000 baht to pay in. How is the relation between the work permit and a Non-Immigrant-B-VISA? Can I get the VISA without having the work permit?

2) To who do I havo to pay the 20% of the registered capital, that is 200.000 or 400.000 baht, depending on whether a work permit is required or not? Can this money be payed back to me as an allowance or something similar, or is this money lost?

3) After staying in Thailand for nearly one year I have different ideas of doing business. Is it possible to keep flexibility in the business activities of a company, for example by defining it as an "Investment company", and to mix different business afterwards? I'm thinking about things like export-import, barbusiness, real estate,...

4) One more real estate specific question: I understood that if I want to make business in real estate, I should not own more than 39% percent of the company to avoid beeing investigated by the central land office when buying land. Is this correct? Can the company legally buy land or houses and rent them or resell them with the intention of making profit?

[~G~]

I am pretty new in that myself, trying to figure out how it all works, but I can tell you what I have learned so far:

PAYING IN means that the money enters YOUR company's bank account in Thailand. They want to see that you actually bring money into Thailand. You should evantually pay in the whole amount, while 25% of it should be paid in the first 3 months. That's in Theory. In practice, I was told that there is no way they can check if you actually paid it in or not. Anyway, its your money ans stays your money.

Regardless of that, you should pay 5,000 baht GOVERNMENT FEES for every 1,000,000 baht of registered capital. That's 10,000 baht for 2,000,000 registered capital. That's "money lost", as you put it.

[Rossi]

Thanx ~G~ for your comment. That sounds good to me. I'm not worried about the startup costs as they are not that high.

Where are all the cracks of this forum??? Hey guys, please don't let me alone...

[Backpack_thailand]

Have yu thought about opening a limited partnership...?

I don't know your circumstances but it works with a Thai 51% and you with 49%.

Don't need any capital, just a trustworthy (!!) Thai to be you partner.

It can all be done in less than a month, work permit included. Find a good lawyer and let him do all the forms and running around for you.

I've just done it with my wife (Thai), really easy!

[Sunbelt Asia]

How is the relation between the work permit and a Non-Immigrant-B-VISA? Can I get the VISA without having the work permit?

Yes. In fact you must get the Visa in order to get the Work Permit. If you get a multiple entry one year visa, you are good for 15 months. If you are caught working without a visa, you could be deported.

To who do I havo to pay the 20% of the registered capital, that is 200.000 or 400.000 baht, depending on whether a work permit is required or not? Can this money be payed back to me as an allowance or something similar, or is this money lost?

It goes into your companies bank account and can be used as working capital, even as a directors loan back to yourself. Noone checks on this 200,000 or 400,000 Baht till the audit which is May of the following year. Some people who did not invest the 25% in cash I understood were fined 1,000 Baht at that time. If you form your company Jan, you are looking at May 2006 before you are fined.

After staying in Thailand for nearly one year I have different ideas of doing business. Is it possible to keep flexibility in the business activities of a company, for example by defining it as an "Investment company", and to mix different business afterwards? I'm thinking about things like export-import, barbusiness, real estate,...

yes

One more real estate specific question: I understood that if I want to make business in real estate, I should not own more than 39% percent of the company to avoid beeing investigated by the central land office when buying land. Is this correct? Can the company legally buy land or houses and rent them or resell them with the intention of making profit?

yes and yes

Have yu thought about opening a limited partnership...?

No because I never thought about putting a gun to my head either. Sorry to say a Limited partnership is one of the worst ways to form a company. Why?...the unlimited liability you'll get if you as a minor shareholder get involve in the mgmt, no way you can control the company let alone own it unless you are under Amity. You cannot be the MD unless you are under Amity.

A limited company is MUCH better where you can be the MD, control the company by having more voting rights and have limited liability. Its the difference between night and day.

I've just done it with my wife (Thai), really easy!

I wish you luck and I do mean that. Our lawyers hear nightmare stories ever day. Please guys protect yourself and then remember it comes down to we are human. What happens if the wife is in an car accident. What happens to the company then? Not a pretty situation when the relatives come out of the woodwork.

www.sunbeltasia.com

[Rossi]

OK, thanks to all you comments (especially from Sunbelt Asia and Steve from Indo-Siam via personal Email) I have a much better view on the topic now.

It seems to be better for me to stay on a 90 days Non-B multiple entry permit, because:

- I don't want to emply 4 thais

- I don't want to pay in the full 2 mio baht registration capital

- I don't need to pay tax on the minimum salary for an european, but only the minimum of 1.500 baht per month (Not really sure on that, but I think I read it somewhere)

- it allows me to work with a virtual office, as the immigration will not visit me in my office.

The only disadvantage I will face is regular visa run together with the work permit renewal. Is the work permit renewal expensive and can it be done on my own?

I always read that 25% of the 2 mio baht registered capital has to be paid in within 90 days after registration. On the other hand I also read many times that it will newer checked if this 25% are really paid in. What is the common practive regarding the payment of this 25%? What about the other 75%? Are they to be paid in later?

I'm a little bit concearned about the minimum monthly costs of such a company. What are the monthly costs of a virtual office, minimum tax for only me as a director (1.500 baht?), costs for accounting or other needed reports, I mean all the costs rising up for a non profit making company? Which part of those monthly costs can be took ower by myself by learning to do it alone and where professional advice is required?

My Non-B multiple entry visa expires in 3 days. I will make a last trip to aranya tomorrow, giving me a last 90 days entry permit based on this visa. Is this entry permit good to get a work permit even if the Non-B visa is already expired or do I have to renew the visa first? Which document of the company building process will I need to easily get a new Non-B multiple entry visa e.g. in Phnom Penh or Malaysia?

[turbo]

Although the penalty for working without a work permit is brutal (ie. don't do it), you need to ask the question about if you will be doing any physical work. Remember you can own a business in the LOL with no problems.

People that I know of that have got busted, a long haul taxi service where the farang was actually doing some of the shuttling himself. A bar owner who hung a picture by himself in his bar using a ladder, hammer and nails.

If your company owns a pizza parlor for example, and you go in to the pizza parlor and sit at the bar and read a newspaper -- everything is fine. You can't clear tables or take money from customers. You also are free to say anything you want to any of the employees, it is physical activity they are looking for.

Normally none of this stuff comes up unless there is a complaint (ie. the pizza parlor across the road). One other thing that is a no no in the case of a complaint is if you are the only director in your company with signatory power. Then at least on paper anyway you must be doing some physical work like signing checks.

If you do need a work permit it means you have to pay a minimum in salaries of about 40,000 bhat per month = about 5,000 bhat/month in taxes + lots of paperwork.

I've also heard this: Once you opt in (for a work permit) it will later be hard to opt out. They will check you extra carefully.

Can you get someone else to do your the physical work part of the duties?

On the expenses of a company, acct = 15,000 + per year for a good one if the company has some assets. I don't know about a virtual office.

One other real nasty is if you need to register for VAT tax. They hit you with this if you have turn over (on paper at least) of > 1.2 m bhat per year. It means doing returns every month and there are a lot of other incremental expenses.

Depending on your situation, if doing a minimal business here I would just recommend avoiding VAT registration and work permit if at all possible.

I know this isn't exactly what you were asking, but I wanted to give my opinion about work permits as it sounds like you are going down that road.

[Rossi]

@turbo

Do I understand you right that you mean to setup a company without applying for a work permit. Theoretically this might be possible but in that case I would not be able to do anything in the name of the company (e.g. signing contracts), right? Also I doubt that I will be granted a Non-B multiple entry visa just beeing a shareholder of a thai limited. So where would be the benefit?

[turbo]

Basically what I'm saying is that the only people I've seen go the work permit route were either big company sponsored or doing a real business, such as a gem stone cutter in Bangkok.

Not only is it possible to set up a company with no work permit, it is commonly done.

I think you may be right on the Non B visa, they are cracking down. You need to get the first Non B on the company prior to getting the work permit anyway. They need to scrutinize the company to find out if it is suitable to grant a work permit, another gray area.

The reason for people setting up companies is asset control, whether it be a house, property or small trading business. Normally these people do have a trusted Thai (eg. wife) who can act as a director.

My only recommendation is before getting a work permit, unless you have someone doing it for you, check out what is involved by talking to someone who has one (not done for him by a large company). Once you opt in, it is a hard club to get out of.

[Digger]

Basically what I'm saying is that the only people I've seen go the work permit route were either big company sponsored or doing a real business, such as a gem stone cutter in Bangkok.

Not only is it possible to set up a company with no work permit, it is commonly done. 

I think you may be right on the Non B visa, they are cracking down.  You need to get the first Non B on the company prior to getting the work permit anyway.  They need to scrutinize the company to find out if it is suitable to grant a work permit, another gray area.   

The reason for people setting up companies is asset control, whether it be a house, property or small trading business.  Normally these people do have a trusted Thai (eg. wife) who can act as a director.

My only recommendation is before getting a work permit, unless you have someone doing it for you, check out what is involved by talking to someone who has one (not done for him by a large company).  Once you opt in, it is a hard club to get out of.

<{POST_SNAPBACK}>

I have set up a company here and have a work permit - sure its not as easy as being on the fringe, but for me, sleeping easy at night counts for a lot. Any type of business that involves real estate will in my opinion be investigated at some point. I have been tax audited before here and the authorities were very satisfied but the passing comment was that in Chonburi at least, the revenue department is going after farang owned businesses as they are easy targets from whom to get tax revenue's and cause less 'disruption' than going after Thai's - we are not talking about tea money here - these guys were clean and looking for companies that are not doing their accounting properly and paying correct taxes.

Now imagine a scenario where the tax authority comes up against a farang company actively trading or developing property, which would assume a turnover of at least 10,000,000 baht a year and find they are not registered for VAT nor are they declaring true income and outgoings for building materials, sales income etc or maintaining even a company bank account (which of course you cannot open without a work permit) - things start to looking very difficult and thats before the tax authorities ask why you or your wife are not paying income tax on anything. Not so easy to hide behind the wife particularly if she has not got a clue how to deal with highly educated tax inspectors with the scent of a big tax collection. For the sake of doing it properly, I have no regrets about which route I chose.

Hope this helps

[Rossi]

For me a very important point is to get a Non-B visa and also a work permit which allows me to follow up business opportunities coming up in the future without any delay. As long as the company makes profit I don't see any prolem in paying taxes, as they are still quite low compared to many other countries. If there is no profit, which is most probable at the beginning, the costs should be in a reasonable range. I would apreciate if someone (preferably Steve or Sunbelt Asia) could comment to my last questions (bold text) which are adressing this issue.

Once you opt in, it is a hard club to get out of.

Thats a good point. What is the procedure to close a company and are there unexpected costs risig up?

[turbo]

As a reply to Digger's point, from what I've seen a work permit is a good way to go if:

You really have a real office where you do business.

You really have an income from which you can pay yourself 60000 bhat a month.

You really have 4 Thai employees.

You really work in the company.

Bogusing up a work permit from what I've heard is costly and can leave you open to unexpected problems.

As far as the hard to opt out comment, I wasn't talking about costs of closing out the business, I meant you would get special scrutiny after canceling the work permit by the authorities. They would want to ensure that what you were doing before that made you require the work permit you are not longer doing.

[Backpack_thailand]

No because I never thought about putting a gun to my head either. Sorry to say a Limited partnership is one of the worst ways to form a company. Why?...the unlimited liability you'll get if you as a minor shareholder get involve in the mgmt, no way you can control the company let alone own it unless you are under Amity. You cannot be the MD unless you are under Amity.

Absolute Twoddle! My Thai wife is on the books purely for legal purposes, she has no control. Your comments about "horror stories" are for morons who think that starting a business with a bar girl is a really good idea!

A limited company is MUCH better where you can be the MD, control the company by having more voting rights and have limited liability. Its the difference between night and day

..and Sunbelt get a bigger % when "helping to set this up"??? I have FULL control of all my business decisions.My wife has absolutely no interest in my work, she is a housewife and excellent mother. She is just happy to ensure that I remain legal and avoid problems with immigration.

...when the family suddenly appear!

And do what...?? You need to check your facts Mr.Greg. The family have no rights whatsoever regarding this Limited Partnership. They are not on any paperwork and don't even know what our business does!

This would go with the email I received from you personally a few weeks ago where you claim I still need 2 million Baht if a work permit was required. Well, this week I have received my work permit and have a Grand Total of 95 Baht in my bank account until I get paid next week!

To "Rossi", check out the Subtlet Group website. Their information is correct!

The fact that Sunbelt have a serious rival has "put their noses out of joint!"

The monopoly is over Sunbelt - Boo, hoo!

[cdnvic]

..and Sunbelt get a bigger % when "helping to set this up"??? I have FULL control of all my business decisions.My wife has absolutely no interest in my work, she is a housewife and excellent mother. She is just happy to ensure that I remain legal and avoid problems with immigration.

The monopoly is over Sunbelt - Boo, hoo!

Thanks for sharing your limited and reckless knowlage backpack. Most of what sunbelt said regarding limited partnerships and corporations are true in almost any country, not only Thailand.

Also, putting in print that you just got a wp without the proper qualifications isn't too smart. Your bravado could come back to haunt you if any of your other shortcuts don't first. Trust me, I've short cutted before and got bit in the ass for it.

cv

[turbo]

And do what...?? You need to check your facts Mr.Greg. The family have no rights whatsoever regarding this Limited Partnership. They are not on any paperwork and don't even know what our business does!

This would go with the email I received from you personally a few weeks ago where you claim I still need 2 million Baht if a work permit was required. Well, this week I have received my work permit and have a Grand Total of 95 Baht in my bank account until I get paid next week!

Though not an expert, as I don't see Mr. Greg around, let me comment IMHO as follows:

1.) Family. Not a question of integrity of wife. Suppose all is well and she dies in a car accident suddenly. Her 51% of the business must pass on to a person of Thai nationality. If the company has assets this is where problems could arise. In the very least, you know you won't be the one that gets her 51% ownership (being a farang and all).

2.) 2 million bhat. This doesn't refer to the amount in the bank account but the amout of registered share capital.

cheers!

[Sunbelt Asia]

Is the work permit renewal expensive and can it be done on my own?

We charge 1,600 Baht per revalidation

What is the common practive regarding the payment of this 25%?

If you don't pay it you may be fined. Up to now the fine has been around 1,000 Baht and its not till the auditor reports it the following year in May.

What about the other 75%? Are they to be paid in later?

It can be service, assets, equipment, inventory, etc

What are the monthly costs of a virtual office

2,500 Baht per month. If you need a work permit, a virtual office will not work. You need a work station which we provide for 3,900 Baht per month ( Ececutive Desk)

minimum tax for only me as a director (1.500 baht?)

Aprox 1,500 Baht

costs for accounting or other needed reports,

1,000 Baht for filing Withholding tax and Social Fund

1,500 Baht for filing VAT

I mean all the costs rising up for a non profit making company? Which part of those monthly costs can be took ower by myself by learning to do it alone and where professional advice is required

Must be done by a licensed accountant

Is this entry permit good to get a work permit even if the Non-B visa is already expired or do I have to renew the visa first?

If the visa is expired you can't get a work permit.

Which document of the company building process will I need to easily get a new Non-B multiple entry visa e.g. in Phnom Penh or Malaysia?

A Thai company sponsoring you that will hire you.

This would go with the email I received from you personally a few weeks ago where you claim I still need 2 million Baht if a work permit was required. Well, this week I have received my work permit and have a Grand Total of 95 Baht in my bank account until I get paid next week!

Sorry you have us mixed up with someone else. Go back and look at our posts for the last two months. You can see that I have said over and over again, the Labor Dept is not checking if you have 2 million Baht paid up capital in cash unless you have an Alien Business License. If you are a foreign MD of a limited partnership then you must have a Alien Business License.

http://www.thaivisa.com/forum/index.php?sh...mp;#entry199156

http://www.thaivisa.com/forum/index.php?sh...mp;#entry227022

http://www.thaivisa.com/forum/index.php?sh...mp;#entry220781

http://www.thaivisa.com/forum/index.php?sh...mp;#entry196510

http://www.thaivisa.com/forum/index.php?sh...mp;#entry188782

My Thai wife is on the books purely for legal purposes

Do you have legal voting rights for outvoting her legally?

This should give you some hesitation.. Look at Section 36

www.moj.go.th/Law/MojLaw/EngLaw/Foreign.pdf

and Sunbelt get a bigger % when "helping to set this up"???

To be frank we get less on a limited company than a limited partnership! It's 2,500 Baht on legal for a Limited Company and 4,000 on a Limited Partnership.

I have FULL control of all my business decisions

and unlimited liability.

See for instance...

http://www.phuketgazette.com/issuesanswers...ails.asp?id=614

And do what...?? You need to check your facts Mr.Greg. The family have no rights whatsoever regarding this Limited Partnership. They are not on any paperwork and don't even know what our business does!

The point is, if your wife has told her family she is the MD and has 51% of the ownership... If God forbid she dies, then the odds are high the family will be involved and you could be on the outside looking in.

www.sunbeltasia.com

[Backpack_thailand]

Also, putting in print that you just got a wp without the proper qualifications isn't too smart. Your bravado could come back to haunt you if any of your other shortcuts don't first. Trust me, I've short cutted before and got bit in the ass for it.

Nothing illegal at all, no short cuts! I have done this all through the correct channels, with my lawyer who has been to the labour office, immigration and local town hall to check exactly what was required. In truth I was quite shocked myself but it seems that this is not that common a route which foreigners no too much about.

Our partnership is registered as a 1 Million Baht Part.Ltd., I am currently having the signs made for our home/office which is compulsory, and then the Labour Officials are coming round to take photos of said signs.

Trust me guys, Ltd Partnerships are easy to set up. They offer the least security for sure, but that's the chance you take. With little or no "down" money, I feel it's a risk worth taking! Plus the fact I don't have a spare 2 mil.

As we are an online company, our only real assets are my computer equipment and several domain names. I will earn the necessary amount per month and pay my taxes and generally keep myself out of trouble.

I've been down the Regsitered Company road and got burned for a fortune, won't be doing that again!

Admittedly there are downsides to a Limited Partnership, i.e less security with no banking being allowed in my name etc. but the question of my wife dying and the family coming into the picture to claim her stake, well this is not a problem as her 51% will automatically go our son.

So there you have it chaps. I'm all documented up and ready to rock 'n' roll! Time to start giving Thaksin a % of my hard earned cash!

[Sumitr Man]

^Backpack -

you do realize, don't you, that if you actively participate in this business you'll not only have unlimited liability for your actions, but also for those of anyone else in the business?

The assets of the business have nothing to do with this, it is a personal liability - so, the house you and your wife live in, if owned by you, is on the line.

You are right about one thing, limited partnership do have their use - but, IME, only in circumstances where you'll have a silent partner, which is clearly not the case in your situation.

BTW - this is not only a financial liability, you also have potential criminal liabilities - did your lawyer make you aware of that fact?

SM

[udon]

Hi Backpack,

I have had dealings with "Mr Greg" and I've seen the advice given on this forum by him.

I have yet to see anyone refute his advice.

I would not hesitate to rcommend his services to anyone, even though we don't see eye to eye on a separate issue.

Geez.... unltd liability, for the sake of a $1000 Co. setup fee.

Sunbelt is in business to make a profit, just like you, so mentioning their % is a bit unfair.

Just my 2 baht from the shed

[Backpack_thailand]

you do realize, don't you, that if you actively participate in this business you'll not only have unlimited liability for your actions, but also for those of anyone else in the business?

The assets of the business have nothing to do with this, it is a personal liability - so, the house you and your wife live in, if owned by you, is on the line.

The house/office we have is rented, so no worries there. When we look to buy our house next year it will be in our son's name and nothing to do with the business. The liability would be for me and my wife, nobody else is involved.

You are right about one thing, limited partnership do have their use - but, IME, only in circumstances where you'll have a silent partner, which is clearly not the case in your situation.

Tee, hee! My wife has not got a clue about computers/internet or how we earn our living etc. She is as silent a partner as you could get. As I said before, she is there purely for legal reasons!

Geez.... unltd liability, for the sake of a $1000 Co. setup fee.

Yeah, just $1,000 set up fee, plus the 2 million in assets and cash required for the work permit which I don't have. If a registered company goes tits up, you honestly think I'd get all that back...?? Dream on!

If my partnership goes tits up, what do I lose...?? Sweet &lt;deleted&gt; all! Anyway, we earn 60,000 - 80,000 a month as a company, I'll pay my taxes,VAT etc. etc. and all is sweet.

Been there before, NEVER again! I've heard more horror stories from registered companies than I have with partnerships. If I have a company I have to employ 5 Thais @ 8,000 Baht a month, whether they earn it or not. That's 40,000 a month gone, plus the added risk of what they'll get up to if I'm not watching 24 hours a day....

...been there before...etc. etc. In the word of a VERY wise man...&lt;deleted&gt; THAT!

This way, I've only got two people to worry about, me and the guv'nor!

I genuinely appreciate the comments and concerns, I shall keep you all informed of progress.....I guess we're all justfinding out the best ways for our own situations!

Plus, we can always "upgrade" to a full company at a later date if necessary!

[Sunbelt Asia]

Yeah, just $1,000 set up fee

A company basic registration with one million Baht of capitalization would cost 10,820 Baht (2,500 + 5,600 + 900 + 420) around $275.00. Add 3,000 Baht for a preferred share setup for voting rights. Total all in is $350.00

That is including government fees on a company set-up on a limited company.

The fees for VAT, Corp tax and Personal tax registration( total 7,500 Baht) will be the same no matter if you have a Limited company or Limited Partnership.

The fees for a work permit of 6,500 Baht would be the same, no matter if you had a limited partnership or limited company.

The filing of VAT, social fund and withholding tax every month is the same under both the limited company and limited partnership if they employ a foreigner.

plus the 2 million in assets and cash required for the work permit which I don't have.

The 2 million Baht is not required to be in cash. It can even be "Know-how"

Just like a limited partnership. the registered capital for a limited company when someone is married, is only 1 million required for a work permit. Let me repeat this, it does NOT have to be paid up in cash.

If a registered company goes tits up, you honestly think I'd get all that back...?? Dream on!

Your "Know-how?" Think it would be worth more than if you had failed :-)

If I have a company I have to employ 5 Thais @ 8,000 Baht a month, whether they earn it or not. That's 40,000 a month gone, plus the added risk of what they'll get up to if I'm not watching 24 hours a day....

Who told you that? Sorry they simply are wrong. A limited company does not need to employ one Thai. If you are seeking a work permit, your employer does not need to hire 1 Thai.

ONLY if you are applying for a extension of stay permit based on business would you need to have 4 Thais employed at least at the minimum salary ( 5,100 per month in salary)

As you are married and have a extension of stay based on marriage. The 4 Thais employed does not apply. No matter if you have a limited company or limited partnership.

Your situation has already been planned out. Nothing can really change that without stopping the limited partnership and applying for a limited company.

That simply won't happen in your case, I only write that other people understand the potential problems going down that path of limited partnerships.

The setup costs were the same but you don't have control over the bank account, you cannot bind the company in a legal sense, you have no control in a legal sense if your wife dies and you have unlimited liability.

Not saying it will happen to you but eight out of 10 times, I would read on this forum. The agony of it all, how you can't trust Thais. I've been screwed. The reason we sponsor this forum is to educate people how to protect themselves in a legal way. Not everyone perhaps has a wife like you or a Thai son who will inherit if she dies.

We charge for setting up companies but our professional fee is one of the lowest in Thailand. A number of clients feel however the advice and service is the best. We are grateful when we hear these comments.

www.sunbeltasia.com

[mussen]

Our partnership is registered as a 1 Million Baht Part.Ltd.

<{POST_SNAPBACK}>

Hi all, this has developed into an interesting thread. A question for Backpack, just wondering if you could share with us what sort of setup fees you were charged, also regarding your 1 mil capital, what portion of that was paid up (if any), thanks in advance.

[Backpack_thailand]

Hi all, this has developed into an interesting thread. A question for Backpack, just wondering if you could share with us what sort of setup fees you were charged, also regarding your 1 mil capital, what portion of that was paid up (if any), thanks in advance.

In answer to your questions:

Set Up Fees:

Done all this through a lawyer, who admittedly is a friend, and he has charged me 10,000 Baht all-in. Includes all document filing, registration, work permit application and letter for getting my non-imm 'B' from Malaysia. Nothing else to pay regards setting up legal side of things.

Got to get some printing done, a sign for the office and that's about it!

Capital:

Mmm, yes, err, what capital...??? Paid nothing at all up, have a few assets but they haven't been listed. As Greg (Sunbelt) was saying, it's probably been put through as "know-how!"

Another point re. greg, I know I've had a few digs at him on this forum (what, me, NEVER!) but the point about trusting the Thais is very valid. As he says, the fact that my son will inherit his mother's shares if, God forbid, anything were to happen to her, is a huge plus-point. I too have been stung before, BIG style!

The loophole in the system is that although I am a foreigner, as his natural father, I have legal power of attourney for my son until he is 16...

...there's always something crazy in these Thai laws!

I love you really Greg!

[Dakhar]

Hi all, this has developed into an interesting thread. A question for Backpack, just wondering if you could share with us what sort of setup fees you were charged, also regarding your 1 mil capital, what portion of that was paid up (if any), thanks in advance.

In answer to your questions:

Set Up Fees:

Done all this through a lawyer, who admittedly is a friend, and he has charged me 10,000 Baht all-in. Includes all document filing, registration, work permit application and letter for getting my non-imm 'B' from Malaysia. Nothing else to pay regards setting up legal side of things.

Got to get some printing done, a sign for the office and that's about it!

Capital:

Mmm, yes, err, what capital...??? Paid nothing at all up, have a few assets but they haven't been listed. As Greg (Sunbelt) was saying, it's probably been put through as "know-how!"

Another point re. greg, I know I've had a few digs at him on this forum (what, me, NEVER!) but the point about trusting the Thais is very valid. As he says, the fact that my son will inherit his mother's shares if, God forbid, anything were to happen to her, is a huge plus-point. I too have been stung before, BIG style!

The loophole in the system is that although I am a foreigner, as his natural father, I have legal power of attourney for my son until he is 16...

...there's always something crazy in these Thai laws!

I love you really Greg!

<{POST_SNAPBACK}>

Actaully, great posts by the both of yall... BackPack and Sundbelt. They are both informative.

I for one am going to go with Greg, this is his forte. See ya soon Greg....

BackkPacks lawyer, no doubt had to "pull out the books" and blow the dust off on the books in this area. I would rather have some one that does this day in a day out, and is not phased by our situations.

[mussen]

Hi all, this has developed into an interesting thread. A question for Backpack, just wondering if you could share with us what sort of setup fees you were charged, also regarding your 1 mil capital, what portion of that was paid up (if any), thanks in advance.

In answer to your questions:

Set Up Fees:

Done all this through a lawyer, who admittedly is a friend, and he has charged me 10,000 Baht all-in. Includes all document filing, registration, work permit application and letter for getting my non-imm 'B' from Malaysia. Nothing else to pay regards setting up legal side of things.

Got to get some printing done, a sign for the office and that's about it!

Capital:

Mmm, yes, err, what capital...??? Paid nothing at all up, have a few assets but they haven't been listed. As Greg (Sunbelt) was saying, it's probably been put through as "know-how!"

Another point re. greg, I know I've had a few digs at him on this forum (what, me, NEVER!) but the point about trusting the Thais is very valid. As he says, the fact that my son will inherit his mother's shares if, God forbid, anything were to happen to her, is a huge plus-point. I too have been stung before, BIG style!

The loophole in the system is that although I am a foreigner, as his natural father, I have legal power of attourney for my son until he is 16...

...there's always something crazy in these Thai laws!

I love you really Greg!

<{POST_SNAPBACK}>

Actaully, great posts by the both of yall... BackPack and Sundbelt. They are both informative.

I for one am going to go with Greg, this is his forte. See ya soon Greg....

BackkPacks lawyer, no doubt had to "pull out the books" and blow the dust off on the books in this area. I would rather have some one that does this day in a day out, and is not phased by our situations.

<{POST_SNAPBACK}>

A question to Greg at Sunbelt, although you do not suggest a limited partnership, could, and would you set up a business/work permit etc. for someone the way Backpacker's lawyer has done? From what I see, Backpacker has done everything legally, and for a company which has limited tangeable assetts, seems like the best way to go. Also what are the accounting requirements for a limited partnership?

[jingjingna]

I find all this so confusing....I'm now under the assumption that I can set up a limited partnership/company without having any capital whatsoever...I too am interested in what Sunbelt have to say.

[Backpack_thailand]

BackkPacks lawyer, no doubt had to "pull out the books" and blow the dust off on the books in this area. I would rather have some one that does this day in a day out, and is not phased by our situations.

Yes, I have to admit, this is not my lawyers "speciality" but he is a very well respected local guy, which as most of you will know goes a long way in LOS. Also, his law firm is the largest in the province so he's always got someone he can turn to for advice on the finer points.

This is one of the truest places for the old saying of "it's not WHAT you know, it's WHO you know!"

What a standard lawyer's fees would be I'm not sure. I've heard prices quoted to friends around the country between 15,000-45,000 Baht!

This is indeed an interesting thread. I guess it's hard to know what's best in the long run...

..."Ours is not to reason why......"

[Rossi]

Lets bring this old but very interesting thread up one more time...

...the registered capital for a limited company when someone is married, is only 1 million required for a work permit. Let me repeat this, it does NOT have to be paid up in cash.

So a limited company would really only need a registered capital of 1 million baht to get a work permit for one farang who is married to a thai national? That means that only 250.000 baht would have to be paid in until may of the following year of the registration. Paid in means this money has to be paid into the companies account during this period, but could be already used to buy assets, pay the salary of the MD,... right?

Who told you that? Sorry they simply are wrong. A limited company does not need to employ one Thai. If you are seeking a work permit, your employer does not need to hire 1 Thai.

ONLY if you are applying for a extension of stay permit based on business would you need to have 4 Thais employed at least at the minimum salary ( 5,100 per month in salary)

As you are married and have a extension of stay based on marriage. The 4 Thais employed does not apply. No matter if you have a limited company or limited partnership.

So if I am married, I can easily get a Type-"O"-NI-VISA based on the marriage to a thai national and therefor don't need the entry permit extension? I will just report to the immigration office every 90 days and thats it, right?

Regarding the work permit, I will still need to have a valid Type-"B"-NI-VISA to get the work permit the first time, right? If I stay within Thailand based on Type-"O"-NI-VISA afterwards, what does this mean for the work permit? For how long is the work permit valid? What happens, if I leave the country for a holiday and come back - is the work permit still valid? Do I need a Type-"B"-NI-VISA again to renew the work permit after expiry?

@Backpack_Thailand

How is your partnership going? No problems with registered capital or some other authorities?

[Sunbelt Asia]

...the registered capital for a limited company when someone is married, is only 1 million required for a work permit. Let me repeat this, it does NOT have to be paid up in cash.

So a limited company would really only need a registered capital of 1 million baht to get a work permit for one farang who is married to a thai national?

Yes as long as it’s not a foreign company, then even though you are married, it must be two million Baht if it is an alien company.

That means that only 250.000 baht would have to be paid in until may of the following year of the registration. Paid in means this money has to be paid into the companies account during this period, but could be already used to buy assets, pay the salary of the MD,... right?

If it is cash, it can be used as needed, even if its before May.

Who told you that? Sorry they simply are wrong. A limited company does not need to employ one Thai. If you are seeking a work permit, your employer does not need to hire 1 Thai.

ONLY if you are applying for a extension of stay permit based on business would you need to have 4 Thais employed at least at the minimum salary ( 5,100 per month in salary)

As you are married and have a extension of stay based on marriage. The 4 Thais employed does not apply. No matter if you have a limited company or limited partnership.

So if I am married, I can easily get a Type-"O"-NI-VISA based on the marriage to a thai national and therefor don't need the entry permit extension? I will just report to the immigration office every 90 days and thats it, right?

With a work permit and salary of 40K per month, yes you can get a extension of stay based on support of a Thai national. You then do not need to revalidate your work permit every 90 days.

Regarding the work permit, I will still need to have a valid Type-"B"-NI-VISA to get the work permit the first time, right?

You need a non immigrant visa.

If I stay within Thailand based on Type-"O"-NI-VISA afterwards, what does this mean for the work permit?

Under the new laws, you will need a work permit (or one of the following : letter of guarantee from a foreign employer or letter from a Embassy stating you have a pension of 40,000 ) or your Thai wife and you must be getting 40,000 Baht per month in Thailand.

Before Oct 1st, it had no impact having a work permit or not having one. You could just show 400,000 Baht , now this no longer allowed. This however is still the case if you have been "grandfather" before Oct 1st (A provision exempting persons already engaged in an activity from rules or legislation affecting that activity.)

For how long is the work permit valid?

It is valid for one year

What happens, if I leave the country for a holiday and come back - is the work permit still valid?

yes

Do I need a Type-"B"-NI-VISA again to renew the work permit after expiry?

Yes or any other type of non immigrant visa.

www.sunbeltasiagroup.com

[Backpack_thailand]

@Backpack_Thailand

How is your partnership going? No problems with registered capital or some other authorities?

No worries at all. Got my 1 year stamp, 1 year work permit and have been plodding along paying my taxes every month like a good citizen.

My local immigration have been first-class all the way through, same with the permit office. The benefits of living in "the sticks" a little further out of the major farang populated areas.