Company Paid-up Capital

[ASIC]

I used to have a company but had to stop during the economic crisis. I would like to start again and apply for Non-B in my own company's name. Now that I don't need 7/4 Thai staff anymore, it's a lot easier.

Can someone tell me what is the minimum amount that needs to be in the company account to get me a work permit? As far as I understand the law says 2 million in registered capital, but much of this must be paid up?

ASIC

[jayrockwell]

ASIC, Our local company registration office required that 25% of share capital be paid up (within X days of incorporation (I remember 90 days?)), we needed to give them proof of the paid-in funds (i.e. bank statements).

This is of course seperate from the current requirements of the Labour Department (who issue work permits), and the Embassy (who issue visas).

But in our case the 500,000 was enough for all.

J

[ASIC]

J,

Thanks for your reply. I already brought in 3 million when I set up the company several years ago. However, a lot of the money was used for the day to day running of the company. Now that I want to re-open my business, I must bring in enough to ensure a work-permit. However, if I need to bring in ANOTHER 2 million to satisfy the labour department, it would mean a total of 5 million. In that case, I think I better go elsewhere.

ASIC

[Indo-Siam]

ASIC -

Registered capitalization level is whatever it is. Once paid-in, it is paid-in for eternity, and is sufficient to meet pay-in requiremrents for things like work permits and entry permit extensions. For a company that has been incorporated for some time, paid-in capital is typically reflected on your tax registration records.

With that said, two other considerations may come into play in your case:

1) Most recent audit - Your balance sheet, as calculated in your most recent annual audit, will be used to detrmine that your company is solvent - and to see whether your reported assets are sufficient to pay salaries that you are reporting. If you have ever allowed balance sheet to become insolvent, you will need to inject cash, to increase asset base - otherwise work permit and entry permit extensions may be denied.

2) Currency in regulatory submissions - If - while company was inactive - your company failed to make any required, monthly, semi-annual, or annual submisisons, you will need to make these up - including clearing of all fines - before you can obtain work permit and entry permit extension.

Good luck!

Steve Sykes

Managing Director

Indo-Siam Group

Bangkok

[email protected]

www.thaistartup.com

[ASIC]

Thanks, Steve,

It looks like I will be in business again soon The books have always been kept in order, and we have gone through audits anually, so that should not be a problem.

For item 1, would half a million be considered a reasonable amount of assets?

ASIC

[Indo-Siam]

Ask whomever is handling you accounting to float a proposal to the folks at Revenue office - and the follow whatever guidance they give.

In practice, there is no firm rule - they decide based on personalities and the nature of your business.

An unoffical rule is that a Thai Private Co. Ltd. is allowed to be non-profitable for its first two years - after that, it must make profit and pay taxes - something like 25,000 baht in year three, and gradual increase after that.

So - you cannot support long-term stay here with a static company - it must actually earn income.

Cheers!

Steve