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Posted
HI folks,
 
Your helpful advises on the below questions are much appreciated:
 
I have a work permit now but going to resign soon. Now I am looking to setup a company, transfer my current work permit under my new company. 
Here are the questions I would like to ask:
 
Company setup questions:
  1. What's the price range should I expect to pay to setup a company in Thailand?
  2. What expenses should I expect from having a company? As far as I understand there are monthly taxes to pay, and a yearly accounting thing. Any other overhead needed?
 
Work permit question:
  1. I have a work permit and a blue book now, the current employer is willing to help to transfer my work permit. What do I need to do for the transfer?
  2. Some agencies said I will be a new blue book, which costs 3K. Can't I use the current one and register under a new employer? Or just an excuse to earn something?
  3. From what the agency told me, it seems whether I have a work permit now or not does not make any difference in process and cost. Is it true?
  4. How much should I expect to pay for a new work permit, or to extend my current work permit?
 
Visa question:
  1. I currently have a one year visa, which requires 90 days report without leaving the country. If I were to setup a company and give myself a work permit, can I apply for such a visa? If yes, how much does it cost officially?
  2. I am confused from my search, some say they need to leave every 90 days, some don't, just do the 90 days report. Are these actually two different kinds of visa?

 

Sorry if the above are answered previously. Much appreciated for any helpful advises, cheers.

Posted

Removed a troll post.

The single biggest problem in communication is the illusion that it has taken place. — George Bernard Shaw

 

Posted
4 hours ago, manarak said:
Company setup questions:
  1. What's the price range should I expect to pay to setup a company in Thailand?
    ==> about 30k
  2. What expenses should I expect from having a company? As far as I understand there are monthly taxes to pay, and a yearly accounting thing. Any other overhead needed?
    ==> about 10k monthly +40k yearly all in (includes personal tax on 50k salary, work permit and extension of stay and staff arrangements)
    (some people will say this is not enough, obviously YMMV)
 
Work permit question:
  1. I have a work permit and a blue book now, the current employer is willing to help to transfer my work permit. What do I need to do for the transfer?
  2. Some agencies said I will be a new blue book, which costs 3K. Can't I use the current one and register under a new employer? Or just an excuse to earn something?
    ==> sounds dodgy
  3. From what the agency told me, it seems whether I have a work permit now or not does not make any difference in process and cost. Is it true?
    ==> probably true
  4. How much should I expect to pay for a new work permit, or to extend my current work permit?
    ==> about 20k yearly
 
Visa question:
  1. I currently have a one year visa, which requires 90 days report without leaving the country. If I were to setup a company and give myself a work permit, can I apply for such a visa? If yes, how much does it cost officially?
    ==> you will still use the original visa. there is a technical difference between visa and extension of stay, the visa is just the original "entry permit", it does expire, while the extension of stay is what allows you to stay. If you leave the country while on extension, you need a re-entry permit in order for the extension to remain valid.
    the extension of stay is usually included in the whole "company + work permit arrangement"
  2. I am confused from my search, some say they need to leave every 90 days, some don't, just do the 90 days report. Are these actually two different kinds of visa?
    ==> no, you can either leave every 90 days or do the 90 day report if you are on a yearly extension of stay

 

In any case, remember Immigration will need to inspect your "office" annually. There will probably also be an initial inspection by the Labor Department. Your office needs an address, which under some circumstances can be located in a condo. An office needs several computers, binders, office furniture and a large sign on the door.
Ask your agencies for details, they usually will provide you with everything you need, including manpower.

another advice I can give is to do everything to look good for authorities, be respectful and thankful for being given the opportunity/authorization to stay under such arrangement. they look for people who won't cause trouble to them.
if everything is clear, the business will be taken care of quickly, because everybody will want to make it work.

one last thing: only accept a proper lawyer member of the Thai bar or a chartered accountant owning his practice, in both cases with running business, as your 51% Thai partner. The reason is 49% liability for up to the company's capital for anything the partner might do.

If doing 90 reports and not leaving the country that means an extension of stay, not a visa, so won't that be cancelled when you finish with the original company??

Posted
12 hours ago, Wayne Lee said:
Visa question:
  1. I currently have a one year visa, which requires 90 days report without leaving the country.

This sounds like an "extension of stay" obtained at immigration - not a visa.  The reason the difference is important, is evident in your next question.

 

12 hours ago, Wayne Lee said:
  1. I am confused from my search, some say they need to leave every 90 days, some don't, just do the 90 days report. Are these actually two different kinds of visa?

There is a "1-Year Multi-Entry VISA" which you can receive from a consulate abroad.  These are more difficult to get now, but they give you 90-days permitted-stay on entry, after which you have to leave the country and return to get another 90-days.  You can continue to do this until the "enter before" date on the visa (1-year after issuance) expires.  I suspect this is what you are hearing about regarding people having to leave ever 90-days.

 

The 90-day report issue is separate, and comes into play only if you stay in the country for 90+ days.  You can skip it if you leave the country before 90-days passes from your last entry to the country.

  • Like 1
Posted
11 hours ago, overherebc said:

If doing 90 reports and not leaving the country that means an extension of stay, not a visa, so won't that be cancelled when you finish with the original company??

I don't know about that particular matter.

Posted
8 minutes ago, manarak said:

I don't know about that particular matter.

Generally if an extension of stay is issued by Imm' based on working is tied to your WP.

If your job finishes or you leave then your WP is cancelled meaning you no longer have a reason to have that extension so it will be cancelled by Imm' and you will be given 7 days to leave Thailand.

If you are starting a company I honestly don't know how that would work out reference the extension of stay you now have being used for the new company WP.

You would need a lawyers advice on that.

 

Posted

Manarak, many many thanks, excellent answer ????

 

Some follow up questions if you don't mind:

17 hours ago, manarak said:
 
  1. What expenses should I expect from having a company? As far as I understand there are monthly taxes to pay, and a yearly accounting thing. Any other overhead needed?
    ==> about 10k monthly +40k yearly all in (includes personal tax on 50k salary, work permit and extension of stay and staff arrangements)
    (some people will say this is not enough, obviously YMMV)
     

-> all in including? I would like to ask for the breakdown because all the agencies I talked to seem to hide things.

 
 
  1. From what the agency told me, it seems whether I have a work permit now or not does not make any difference in process and cost. Is it true?
    ==> probably true
-> Did you have any experience using an agency who assist you on setting up a company? I talked to couple of them and I can say they don't sound very trustworthy. Do you have any advice on what I should be careful of before handing them my money? 
 
one last thing: only accept a proper lawyer member of the Thai bar or a chartered accountant owning his practice, in both cases with running business, as your 51% Thai partner. The reason is 49% liability for up to the company's capital for anything the partner might do.
-> Could you kindly point me to somewhere to check the bar membership and chartered accountant? Many thanks.

 

Posted
2 hours ago, Wayne Lee said:

Manarak, many many thanks, excellent answer ????

 

Some follow up questions if you don't mind:

-> all in including? I would like to ask for the breakdown because all the agencies I talked to seem to hide things.

I haven't got all the details with me now, and I won't be back in Thailand anytime soon. I think it was something like 4x900 baht social security, approx. 3000 or 4000 for accounting and the rest (approx. 2600 or 2800) social security and personal tax for myself.
The annual fee includes yearly accounting cost, yearly lawyer's fee and "processing fees" at labour department and immigration.

 

-> Did you have any experience using an agency who assist you on setting up a company? I talked to couple of them and I can say they don't sound very trustworthy. Do you have any advice on what I should be careful of before handing them my money?
I used a lawyer member of the Thai bar.

-> Could you kindly point me to somewhere to check the bar membership and chartered accountant? Many thanks.

That's actually a very good question. I have found no online resources for this, maybe something is available in Thai language. The 2 regulating associations are: The Federation of Accounting Profession and The Lawyers Council of Thailand

Posted

get a good accountant/lawyer. preferably one connected with immigration. I used a company called Plan B in pattay and they were excellent. having a company and work permit is a mine field and for most people it is simply not worth the money and headache.  expect to have visits for tea money and be prepared for ongoing problems if you have thai competition. my first piece of advice is to start a clean work permit with the correct details in it. I wish that is what I did when I moved from one company in samui to another company I started in pattaya. good luck.

Posted
2 hours ago, FritsSikkink said:

You do know that will setup a company with fake employees to get a work permit and that isn't legal?

I knew someone with a legit-business on this type of extension - guest-house + restaurant.  One day, officials showed up to verify the business was legit, and to count the employees.  They stayed (and were served coffee and snacks) until the 4th late-arriving employee showed up for work.

 

Also, be aware that if one were found to have faked something to get an extension-of-stay, immigration may regard this as a form of overstay, and pursue banning.  This happened to someone who was found to have faked the money for the company-equity (reported here, even though he had since gone to a Non-O - was deported and banned), and could presumably occur in a case of faked-employees.

 

Perhaps the OP intends to run a "real" business, in which case all of this is fine.  But, if one intends to "buy a visa," the Elite system is cleaner, and similar in cost.  I'm no fan of this, as I believe it is a contributor to corruption-based "crackdowns"on other legit forms of stay, and is insanely overpriced.  But, if one is going to blow that much money just for a permitted-stay, the Elite at least avoids potential consequences for "illegal activity."

  • Like 2
Posted

"Work permit question:

  1. I have a work permit and a blue book now, the current employer is willing to help to transfer my work permit. What do I need to do for the transfer?"

I wonder if you or your current employer are fully aware of the several complex processes involved in 'transfer of work permits'?

 

Being 'willing to transfer' is a nice start but I'm aware that the process is complex and time consuming and requires both parties to provide guarantees to each other and to the revenue authorities (tax), and in reality when employers see / understand these documents they would probably not want to get involved.

 

On the other hand if your company is new would it even be possible to transfer the WP to the new company?

 

An on the other hand, it's very easy / simple to cancel the old WP and instantly apply for a new one under the new company name - the initial point is to ensure the company is set-up so that the WP is possible.

 

At many labour offices WPs are approved / issued within 4 working days (not same at every office of course).  

 

Perhaps even possible with a little planning to get the new one then cancel the old one, or once the new application is looking good then cancel the old one. 

 

 

 

Posted
57 minutes ago, scorecard said:

"Work permit question:

  1. I have a work permit and a blue book now, the current employer is willing to help to transfer my work permit. What do I need to do for the transfer?"

I wonder if you or your current employer are fully aware of the several complex processes involved in 'transfer of work permits'?

 

Being 'willing to transfer' is a nice start but I'm aware that the process is complex and time consuming and requires both parties to provide guarantees to each other and to the revenue authorities (tax), and in reality when employers see / understand these documents they would probably not want to get involved.

 

On the other hand if your company is new would it even be possible to transfer the WP to the new company?

 

An on the other hand, it's very easy / simple to cancel the old WP and instantly apply for a new one under the new company name - the initial point is to ensure the company is set-up so that the WP is possible.

 

At many labour offices WPs are approved / issued within 4 working days (not same at every office of course).  

 

Perhaps even possible with a little planning to get the new one then cancel the old one, or once the new application is looking good then cancel the old one. 

 

 

 

 Further, the application documents for the initial issue of a WP are actually quite simple, don't let anybody try to convince you that the forms are complex and don't let anybody tell you they can only be submitted by a certified lawyer etc. Not true. 

 

Local accountants can and often do set up companies for their clients. And the actual registration fee is quite minimal.

 

Also, a few years back a buddy of mine was seriously scammed  by a law firm (mixed Thai and farang owners) who scammed the newbie for over 100,000Baht to set up the company, claiming that 95% of the fees were government fees. Not true. When queried they claimed that the original documents had to be sent by urgent very expensive courier to their parent office in the USA and returned the same way. A search proved that there was no parent office anywhere outside of LOS and proved that the farang partner of the law firm set up here in Thailand had been disbarred in whatever US state.  

 

The same law firm also insisted that the annual company report to the Thai Companies office had to be prepared and submitted by the same lawyer, nobody else. And the lawyer also insisted that by law the same lawyer had to engage and supervise the accountant and engage the auditor. Same law firm insisted that they had to hold in safe keeping all the original documents, certificates and registrations etc., in their law office.

 

All bullshxx.

Posted
On 10/10/2018 at 5:05 PM, Wayne Lee said:
Company setup questions:
  1. What's the price range should I expect to pay to setup a company in Thailand?
  2. What expenses should I expect from having a company? As far as I understand there are monthly taxes to pay, and a yearly accounting thing. Any other overhead needed?
  1. From around 35,000 baht to 60,000 baht to set up a Thai company limited, including registration fees.
  2. About a few thousand baht a month in accounting, depending of workload, and 15,000 to 20,000 baht in annual auditor fee. Expect little company tax to be paid, even you are not making a profit. In total expect yealy from around 40,000 baht and up.
    For a running company you'll have normal expenses for staff, social security, rent of business location, withholding tax etc.

Are you familiar with the requirements for shareholder capital needed for one foreign work permit, number of Thai workers, and if not from USA (see: US Treaty of Amity) the 49% foreign ownership limit..?

 

On 10/10/2018 at 5:05 PM, Wayne Lee said:
Visa question:
  1. I currently have a one year visa, which requires 90 days report without leaving the country. If I were to setup a company and give myself a work permit, can I apply for such a visa? If yes, how much does it cost officially?
  2. I am confused from my search, some say they need to leave every 90 days, some don't, just do the 90 days report. Are these actually two different kinds of visa?
  1. You likely have an extension of stay for one year based on Work Permit. You can extend that with a new Work Permit, if the one you already have cannot be transferred. If your existing Work Permit terminates, before you have a new, you might need to leave the Kingdom within 7 days after termination, and apply for a new Non-Immigrant B visa for re-entry (check/search forums, look for answer from "ubonjoe"). 
    Application for extension of stay in the Kingdom costs 1,900 baht. If you for any reason travel outside, you'll need a re-entry permission, which cost you 1,000 baht for a single re-entry; if you're leaving often you can consider an annual multi re-entry permission for 3,800 baht. If you leave without a re-entry permission, you terminate your permission for extended stay.
  2. The 90-day rule for yearly extension of stay is an address reporting every 90 days. It's little different from province-to-province, if you can do it by Internet, or has to do it in person at an Immigration Office; you don't need to leave the Kingdom, when having an annual extension of stay based on Work Permit (or other reason).

????

 

Posted
On 10/11/2018 at 7:59 PM, overherebc said:

If your job finishes or you leave then your WP is cancelled meaning you no longer have a reason to have that extension so it will be cancelled by Imm' and you will be given 7 days to leave Thailand.

You are not given 7 days.  You have to apply and pay 1900 baht for an extension.  Only then will you get the 7 days to leave.

Posted
14 hours ago, JackThompson said:

I knew someone with a legit-business on this type of extension - guest-house + restaurant.  One day, officials showed up to verify the business was legit, and to count the employees.  They stayed (and were served coffee and snacks) until the 4th late-arriving employee showed up for work.

 

Also, be aware that if one were found to have faked something to get an extension-of-stay, immigration may regard this as a form of overstay, and pursue banning.  This happened to someone who was found to have faked the money for the company-equity (reported here, even though he had since gone to a Non-O - was deported and banned), and could presumably occur in a case of faked-employees.

 

there are indeed yearly inspections where the number of employees is verified. please read between the lines.

Posted
18 hours ago, JackThompson said:

They stayed (and were served coffee and snacks) until the 4th late-arriving employee showed up for work.

 

It says you must have a 4 to 1 ratio, nowhere does it say they all need to be at work at the same time.

Posted
1 hour ago, certacito said:

It says you must have a 4 to 1 ratio, nowhere does it say they all need to be at work at the same time.

Just reporting what happened, as told to me by someone who was there.  The business had exactly 4 Thai employees, and the officials wanted to see all 4 on the premises, working, at that time. 

 

4 hours ago, manarak said:

there are indeed yearly inspections where the number of employees is verified. please read between the lines.

Yes - and it probably could have been avoided with an envelope - but they were running a legit-business, and the 4 hired actually worked every day.  In this case, the inspection appeared to go OK.  If they had to do anything beyond legit, it was not known to the person who relayed the story.

 

If it were me, I would "do the right thing" and operate legitimately, to cover my backside from the law-and-order angle.  Unfortunately, it is reported that it is also necessary to supply envelopes in some cases, to stay safe from those who don't care whether you are legit or not. 

 

Sadly, due to the crackdown on "too frequent" tourists, their business declined sharply, and they had to let all but one employee go the following year.  If they could have kept more of their regular frequent-tourist customers, three Thais could have kept their good-paying jobs (all were paid well above min-wage).  

 

That "one guy" who comes in for coffee and a pastry 200 days/yr is critical to these smaller businesses.  When told at the airport he should "go home" (yeah, right) because he has "been in Thailand too much," he switches his destination to Cambodia or Vietnam, and it's Thais who pay the price for that IO's decision.

Posted

OP appears to want to know all about setting up a company, getting a work permit etc, what I dont follow is "WHY". OP doesn't actually mention any business, working in a business, making an income etc, starting a business etc, its just a company/WP for the sake of having one. Maybe the OP has the next great business idea, already has a money making business etc. It all seems to be theoretical, not a means to being able to work in his own business.

Otherwise why go to all the expense/setup etc, just to get a WP ?

Posted
3 hours ago, JackThompson said:

Just reporting what happened, as told to me by someone who was there.  The business had exactly 4 Thai employees, and the officials wanted to see all 4 on the premises, working, at that time. 

 

Yes - and it probably could have been avoided with an envelope - but they were running a legit-business, and the 4 hired actually worked every day.  In this case, the inspection appeared to go OK.  If they had to do anything beyond legit, it was not known to the person who relayed the story.

 

If it were me, I would "do the right thing" and operate legitimately, to cover my backside from the law-and-order angle.  Unfortunately, it is reported that it is also necessary to supply envelopes in some cases, to stay safe from those who don't care whether you are legit or not. 

 

Sadly, due to the crackdown on "too frequent" tourists, their business declined sharply, and they had to let all but one employee go the following year.  If they could have kept more of their regular frequent-tourist customers, three Thais could have kept their good-paying jobs (all were paid well above min-wage).  

 

That "one guy" who comes in for coffee and a pastry 200 days/yr is critical to these smaller businesses.  When told at the airport he should "go home" (yeah, right) because he has "been in Thailand too much," he switches his destination to Cambodia or Vietnam, and it's Thais who pay the price for that IO's decision. 

"That "one guy" who comes in for coffee and a pastry 200 days/yr is critical to these smaller businesses.  When told at the airport he should "go home" (yeah, right) because he has "been in Thailand too much," he switches his destination to Cambodia or Vietnam, and it's Thais who pay the price for that IO's decision."

The Thais will have a job very quickly in a new business. The "tourist" should get a proper visa if he wants to live here. 

Posted
1 hour ago, FritsSikkink said:

The Thais will have a job very quickly in a new business.

Yes - but most have poor alternative options, such as barely existing working at a convenience store (serving the "new preferred" tourists who eat dinner there), going home to subsistence-farming, or selling their bodies by the hour. 

 

1 hour ago, FritsSikkink said:

The "tourist" should get a proper visa if he wants to live here. 

Many bailing on Thailand now, formerly came on "proper" Tourist Visas.  This is becoming problematic unless one wants to enter by land, due to the policies being pushed by supervisors at both Bangkok airports.

 

The truly-committed can do what the OP is apparently considering - and there are other ways to do it - but most will simply spend their money creating jobs in countries where a "proper" Tourist Visa is greeted with a "welcome" (Cambodia, Vietnam, The PI, Latin America, etc) - not an interrogation and/or rejected-entry.

Posted
10 minutes ago, JackThompson said:

Yes - but most have poor alternative options, such as barely existing working at a convenience store (serving the "new preferred" tourists who eat dinner there), going home to subsistence-farming, or selling their bodies by the hour. 

 

Many bailing on Thailand now, formerly came on "proper" Tourist Visas.  This is becoming problematic unless one wants to enter by land, due to the policies being pushed by supervisors at both Bangkok airports.

 

The truly-committed can do what the OP is apparently considering - and there are other ways to do it - but most will simply spend their money creating jobs in countries where a "proper" Tourist Visa is greeted with a "welcome" (Cambodia, Vietnam, The PI, Latin America, etc) - not an interrogation and/or rejected-entry.

The people who are leaving are spending not much money anyhow otherwise they could afford a proper visa, so goodbye.

Posted
11 minutes ago, FritsSikkink said:

The people who are leaving are spending not much money anyhow otherwise they could afford a proper visa, so goodbye.

I'm married to a Thai for years now, so not going anywhere.  But many of those now being harassed or blocked when entering, spent several Thai monthly-salaries into the economy every month they stayed.  This is evidenced by the closed-businesses where they used to spend money.

 

Many entered with proper Tourist Visas.  Others are flying in Visa-Exempt, staying awhile, leaving, then returning weeks or months later - only to be told their spending here "too much" is "abusing" something.  Their lifestyle requires considerably more spending to be in Thailand than over-50s require to do so.  Clearly, the vast majority have money to spend.

 

Regardless, there is no reason to remove any foreign-contributions flowing into the Thai economy.  What good would that do for anyone?  Why would anyone celebrate such a thing?

Posted
1 hour ago, JackThompson said:

I'm married to a Thai for years now, so not going anywhere.  But many of those now being harassed or blocked when entering, spent several Thai monthly-salaries into the economy every month they stayed.  This is evidenced by the closed-businesses where they used to spend money.

 

Many entered with proper Tourist Visas.  Others are flying in Visa-Exempt, staying awhile, leaving, then returning weeks or months later - only to be told their spending here "too much" is "abusing" something.  Their lifestyle requires considerably more spending to be in Thailand than over-50s require to do so.  Clearly, the vast majority have money to spend.

 

Regardless, there is no reason to remove any foreign-contributions flowing into the Thai economy.  What good would that do for anyone?  Why would anyone celebrate such a thing?

"several Thai monthly-salaries"

Minimum wage or a proper salary?

Posted
2 hours ago, JackThompson said:

I'm married to a Thai for years now, so not going anywhere.  But many of those now being harassed or blocked when entering, spent several Thai monthly-salaries into the economy every month they stayed.  This is evidenced by the closed-businesses where they used to spend money.

 

Many entered with proper Tourist Visas.  Others are flying in Visa-Exempt, staying awhile, leaving, then returning weeks or months later - only to be told their spending here "too much" is "abusing" something.  Their lifestyle requires considerably more spending to be in Thailand than over-50s require to do so.  Clearly, the vast majority have money to spend.

 

Regardless, there is no reason to remove any foreign-contributions flowing into the Thai economy.  What good would that do for anyone?  Why would anyone celebrate such a thing?

OK, point taken, but let's be serious about the total cash used by 'expats' each month. The reality is that's it's not a massive amount compared to the local economy. 

 

 

Posted
45 minutes ago, FritsSikkink said:

"several Thai monthly-salaries"

Minimum wage or a proper salary?

I refer to salaries of the Thais being paid in the tourist-sector in businesses that serve Western customers, such as guesthouses, sit-down restaurants, and pubs  - vs the jobs paying the minimum, such as "package tour" hotels and convenience-stores. 

Hopefully, the OP will open a business like this, rather than just an "on paper" business - assuming he can find a market niche that can survive the continual screw-tightening by immigration to root-out his potential customers.

 

20 minutes ago, scorecard said:

OK, point taken, but let's be serious about the total cash used by 'expats' each month. The reality is that's it's not a massive amount compared to the local economy. 

I would not argue that the expat gross-take is proportionally massive - just that each one of us support multiple Thai jobs, many of which pay above the low-end.  Each baht we spend makes the country richer, since it comes from abroad.  We receive no taxpayer benefit, and are not the cause of overburdened infrastructure, crowding, etc.

 

If it were a "one or the other" question, that would be a valid argument, but we are not harming other economic-sectors.  Western expats don't eat or live at the same places as the "package" tourists.  Nor are we affecting the "elite" crowd, who live on another tier, above.  When I wonder why this is happening, I can only think of reasons which would be connected to corruption - only that this agenda is being paid-for.

 

This issue doesn't affect me directly any more - I live in the boonies now with my wife.  But I saw the damage while living in Jomtien, as one business after another was boarded-up - and we still have Western and Thai friends down there.  This pointless policy, being run primarily out of the Bangkok airports, is not helpful to any of them.

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