Opening business plus one work permit - special case

[CLW]

Sorry if this topic has been discussed to death.

 

The question is about the setup structure for a company that can provide one work permit for a foreigner.

 

The special case is that the future company is operating in the agricultural sector.

I read a lot about it from it is totally impossible because of the restrictions of Thai business and labor laws to that it is possible just depending on the definition of the company scope and duties of the working foreigner involved.

 

The capital for the setup of the future company would be 4 million Baht.

 

How should the company be registered and how to get the work permit are the questions.

 

I would like to keep lawyers outside as much as possible as I think they are greedy and useless.

 

Please NO discussion about the rentability etc...

 

Best regards

[swissie]

Glad you are aware of the "restrictions" that a Farang is subjected to when it comes to "working in Thailand". This goes especially when it involves the "agricultural-sector".

Unless you can display that your "agricultural-project" is based and sponsored by a university/a major international Agri-Company or an NGO, all of them indicating that your presence is essential within this scientific Agri-Project, your chances of receiving a work permit in this environement are practially zero.

Your available capital of only 4 mill Bht will not get you far in todays Thailand.

Should you be under the age of 50, immigration will take special interest in your "agricultural-project" on some "family-land" in connection with a work-permit. (others have tried).

Can not issue final comment, as you only disclose that you want a work permit by way of forming a "company", forgetting that without the assistance of "lawyers" you can not form a company by your own wits in Thailand.
Certainly not wanting to discourage you, but with only 4 mill Bht you are just undercapitalised, no matter what business- venture you are persuing in Thailand. Unless you have some "hidden-assets" that you do not want to disclose at this time, your chances of success in the "world of business" in Thailand are extremely slim.

For now you are not interested in "rentability". (ROI= Return on investement). Possibly, 2 years down the road it may well be the only thing that you are willing to talk about anymore.
No offence, I wish you luck.
Cheers. 

[DILLIGAD]

If it was that easy why haven’t many other ‘farangs’ done it???
Respectfully suggest you think again and broaden your search.


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[puchooay]

If it is really only the work permit that you are worried about, you only need to form a partnership with your wife and have 1 million fully paid up capital.

[CLW]

If it is really only the work permit that you are worried about, you only need to form a partnership with your wife and have 1 million fully paid up capital.

Have you done it successfully? In the agricultural sector?
I am concerned that according to the regulations of the foreign business act of Thailand any business related with agriculture must be 100% Thai owned.

Apart from that, the list of restricted occupations rules out any work of foreigners in agriculture, whatever that means...

I understand that they don't want to have any competition for doing everyday labour jobs on the farm. On the other hand you can often hear and see that first it seems hard to find Thai labour working on a farm and secondly anyway they are mostly from neighbouring countries such as Cambodia or Myanmar.

However, back to the definition of working in agriculture. What if the position of the foreigner is described as manager or consultant? Does he then still count as working in agriculture?
How is it then possible that managers of hotels can be foreigners? This sector is also on the list of restricted occupations.

[puchooay]

1 hour ago, CLW said:

Have you done it successfully? In the agricultural sector?
I am concerned that according to the regulations of the foreign business act of Thailand any business related with agriculture must be 100% Thai owned.

Apart from that, the list of restricted occupations rules out any work of foreigners in agriculture, whatever that means...

I understand that they don't want to have any competition for doing everyday labour jobs on the farm. On the other hand you can often hear and see that first it seems hard to find Thai labour working on a farm and secondly anyway they are mostly from neighbouring countries such as Cambodia or Myanmar.

However, back to the definition of working in agriculture. What if the position of the foreigner is described as manager or consultant? Does he then still count as working in agriculture?
How is it then possible that managers of hotels can be foreigners? This sector is also on the list of restricted occupations.

I don't have any experience of this involving agriculture. 

 

The definition of your job will decide whether you are issued a work permit or not. If you can somehow show that use of English is important in your work, this will help. 

[CLW]

I don't have any experience of this involving agriculture. 
 
The definition of your job will decide whether you are issued a work permit or not. If you can somehow show that use of English is important in your work, this will help. 

Not English skills but this knowledge is quite rare and unique in Thailand.
I also have degree from Thai university if that should help.

[LukKrueng]

Agriculture is a broad term and as the op didn't state what he wants to do in agriculture it is hard to give actual advice. However, some replies so far were not accurate. A business registration does not need a lawyer involved. If you can't do it yourself, most accountants can do it better and cheaper than lawyers. As for a work permit, I'd suggest going through a recommended agent. It will cost more than applying on your own, but a good agent knows what can be applied for and what cannot, therefore much better chances to define your role in the company in a way that will be approved by the labor department. There are many foreign companies operating in Thailand's agricultural sector, and many foreigners with wp working in these companies.

As for initial investment of 4m thb, how can anyone suggest is enough or not without knowing what the business is all about? For wp purposes this capital is enough for 2 wp's (and of course needs to be matched up with enough Thai employees).

As the actual question in the op was about structure/definition of the company's registration, I assume he's got the profitability all figured out, so as I wrote above- I suggest you find a good recommended wp agent and discuss with them what would be the best setup of a company for wp purposes.

good luck.

[seancbk]

22 hours ago, CLW said:

Not English skills but this knowledge is quite rare and unique in Thailand.
I also have degree from Thai university if that should help.

 

There are a number of Agriculture and Agricultural Product areas that the Board of Investment in Thailand want Foreigners to invest in. 

Here is a list - http://www.boi.go.th/upload/section1_en_wt_link.pdf

Suggest you approach the BOI and see if they can help you 

http://www.boi.go.th/un/eligible_activities

 

 

[khunPer]

On 7/8/2018 at 7:36 PM, CLW said:

How should the company be registered and how to get the work permit are the questions.

To my knowledge – I've opened a Thai co. ltd. myself – you will be best off using a lawyer to establish the company for you, alternatively an accountant company that probably charge the same as an experienced business lawyer. It's not that expensive, ranges from about 35k baht to maybe up to 60-70k baht today, including registration fee for a capital of 4 million baht; i.e. small money for a properly done job compared to the shareholder capital.

 

You will among other need both "Articles of Association" and "Particulars of the objective" written in Thai (and English for your own understanding), items that business lawyers have on the shelf, ready for minor modifications to fit your company structure. It's important that all paperwork are done correctly from the beginning, and it can be a lot cheaper to pay an experienced lawyer, or business and tax accountant, which you anyway will need, than trying to do it yourself; also for any future operation in the company – can you for example write a meeting report in Thai language, you'll find you need "meting report", and up-to-date officially stamped copy of your company registration, every time you wish to do something little special, like opening a bank account, or buying and registering a car, or...

 

You need minimum three shareholders, and 51 percent of the shares shall be held by Thais – however if you are US citizen, there are special rules for ownership in the "US-Thailand Treaty of Amity" – and you cannot use proxy shareholders; i.e. your Thai shareholders need to show legal access to funds used to invest in shares.

 

You need minimum 2 million baht shareholder capital for one alien Work Permit, and furthermore four Thai employees. There are exceptions for certain kind of business, but to my knowledge not farming, which is a restricted work area for Thai nationals. You can find more information here at BOT.

 

In general some good, and easy understandable, information about a business set-up can be read here at Samui-for-sale.

 

Wish you good luck with your project...?

[CLW]

Agriculture is a broad term and as the op didn't state what he wants to do in agriculture it is hard to give actual advice. However, some replies so far were not accurate. A business registration does not need a lawyer involved. If you can't do it yourself, most accountants can do it better and cheaper than lawyers. As for a work permit, I'd suggest going through a recommended agent. It will cost more than applying on your own, but a good agent knows what can be applied for and what cannot, therefore much better chances to define your role in the company in a way that will be approved by the labor department. There are many foreign companies operating in Thailand's agricultural sector, and many foreigners with wp working in these companies.
As for initial investment of 4m thb, how can anyone suggest is enough or not without knowing what the business is all about? For wp purposes this capital is enough for 2 wp's (and of course needs to be matched up with enough Thai employees).
As the actual question in the op was about structure/definition of the company's registration, I assume he's got the profitability all figured out, so as I wrote above- I suggest you find a good recommended wp agent and discuss with them what would be the best setup of a company for wp purposes.
good luck.

Thanks for the advice with an agent. The business is related with organic or at least certified quality farming.
Profitability is figured out by western and Thai business consultants already.
I'm not trying to get rich or expecting a fortune as salary.

[khunPer]

On 7/9/2018 at 5:36 AM, CLW said:

Apart from that, the list of restricted occupations rules out any work of foreigners in agriculture, whatever that means...

There are other kind of partnerships in agricultural business – I know for example of two Danish projects in milk production and pig farming – you should try to check these. Toy can probably be shareholder, i.e. minimum 51% shall always always owned by Thai nationals.

 

Foreign workers from neighboring countries – i.e. Cambodia, and Lao, and Myanmar – are not within the alien Work Permit limitation with shareholder capital and number of Thai national employees, but the company still need a permission. Workers from neighboring countries will be issued two-year long Work Permits.

[CLW]

 
There are a number of Agriculture and Agricultural Product areas that the Board of Investment in Thailand want Foreigners to invest in. 

Here is a list - http://www.boi.go.th/upload/section1_en_wt_link.pdf

Suggest you approach the BOI and see if they can help you 

http://www.boi.go.th/un/eligible_activities
 
 

I've seen their promotion before.
That's why I was wondering if it would be possible to establish a company and get a work permit for agricultural sector.
I found out there is a one stop service center at Chamchurri square.
Anyone ever used their services?

[LukKrueng]

4 hours ago, CLW said:

 

 

Thanks for the advice with an agent. The business is related with organic or at least certified quality farming.
Profitability is figured out by western and Thai business consultants already.
I'm not trying to get rich or expecting a fortune as salary.

 

If you mean you want to become an organic certifying organization - there are few local organizations already, and there are reps from EU, US and Canadian organizations already operating here

[CLW]

If you mean you want to become an organic certifying organization - there are few local organizations already, and there are reps from EU, US and Canadian organizations already operating here

Thanks for the reply.

Scope of the business is production of agricultural goods.