Workpermits

[MKumar]

What if I wanted to start a small business in Thailand, how do I go about getting a work permit? I would like to invest my life's savings for a better future. Helpful comments are welcome. 

Edited June 6, 2019 by MKumar
small changes

[MKumar]

I can invest a maximum of half a million baht which is equal to one million Indian rupees. I would like to start the business in Pattaya or Phuket, two places I know very well, having spent a lot of time there during the last four years as a tourist. I am open to hiring Thais not only to meet the quota requirement which I believe is in the ratio of 4:1 but also for existential reasons - I cannot speak or write the Thai language for one thing.  I would not mind taking on expats if I can afford their services. I dont know how I can apply for work permits for the Thais and the expats before I get the necessary paperwork for myself. 

I am thinking on the lines of setting up a restaurant. 

Edited June 6, 2019 by MKumar
add details

[ubonjoe]

Before you could apply for a work permit you would have to register your business as company and have it registered with 2 million baht of capital.

Not sure 500k baht would be enough to start up the business.

[MKumar]

21 minutes ago, ubonjoe said:

Before you could apply for a work permit you would have to register your business as company and have it registered with 2 million baht of capital.

Not sure 500k baht would be enough to start up the business.

Thanks ubonjoe, can I use the 2 million baht for my business or is it locked up during the survival of the business? I will be inviting partners to have a stake in the business so I dont have to put up all the money. I am sure there can be shareholding pie in the business, isnt it? How can I invite partners? 

Edited June 6, 2019 by MKumar
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[ubonjoe]

The registered capital is just number used when registering the company. It does not have to be in cash or in the bank. It can be the value of what the company own such as equipment and furnishings.

You will need a Thai partner to hold 51% of the company. 

Questions about company formation and etc should be asked on the Jobs, economy, banking, business, investments forum.

[MKumar]

1 hour ago, ubonjoe said:

The registered capital is just number used when registering the company. It does not have to be in cash or in the bank. It can be the value of what the company own such as equipment and furnishings.

You will need a Thai partner to hold 51% of the company. 

Questions about company formation and etc should be asked on the Jobs, economy, banking, business, investments forum.

Thanks Ubonjoe, would it please be possible for you to help me move this topic to that area so that I dont need to start this topic again over there? Thanks! 

Edited June 6, 2019 by MKumar
thanks

[1FinickyOne]

15 hours ago, MKumar said:

Thanks ubonjoe, can I use the 2 million baht for my business or is it locked up during the survival of the business? I will be inviting partners to have a stake in the business so I dont have to put up all the money. I am sure there can be shareholding pie in the business, isnt it? How can I invite partners? 

getting partners for a start up in a foreign country is very difficult. Your most likely source will be family and friends who know you and have utmost faith in your abilities. I cannot see investors going into this unless they will be getting a large % return on a guaranteed investment. 

 

many people have dreams... what do you have to offer that is different? 

 

what benefit will an investor have by helping you as opposed to putting money in microsoft or apple? 

 

that said best of luck to you.. 

[jumbo]

16 hours ago, ubonjoe said:

The registered capital is just number used when registering the company. It does not have to be in cash or in the bank. It can be the value of what the company own such as equipment and furnishings.

You will need a Thai partner to hold 51% of the company. 

Questions about company formation and etc should be asked on the Jobs, economy, banking, business, investments forum.

For a WP it needs at least 2.0 mio thb in capital which can be used as Ubonjoe explained for investments or remain as cash..

 

The 51% Thai partner is correct, but also could be bent a little bit if you have a business that needs serious investments or exports only. Then you could be eligible for a location on an Industrial Estate under rules of the related Authority.

 

The 51% Thai partner can also be an appointed helper, such as a lawyer to set things up, and can be handed shares in a manner that the partner has no decision power in the running of the business, or any profit sharing, just a matter of setting things up properly with the correct advise from a 3rd and reliable party.

 

Find such a partner and you will get good advise

 

[Baerboxer]

Are you an experienced businessman in India with a track record of making start-ups a success?

 

If yes, then do some sound research of the challenges of foreigners owning and operating a business in Thailand; the laws, processes, requirements and areas of opportunity in which you have experience.

 

If not, then do yourself a big favor and don't gamble with your life savings.

[robertson468]

Unless you have some guaranteed business, with a very positive business plan, please, please do not do it.  I have been living in Thailand now for 15 years and have lost count of the amount of businesses that have opened up, made insufficient profit to survive and then closed with loss of all their investment.  I would suggest you try running a businesses in your own Country.  If it succeeds the bring the model over here and try it here.  It is no easier to run a business in Thailand than anywhere else and if you don't know the lingo, or have good Thai connections, you will be severely disadvantaged.  By the way 500,000 baht is quite a small investment to launch a business with.

[TTL2]

For a second thought, would you consider this options:-

https://www.harveylawcorporation.com/image/catalog/One Pagers/155177206666331500.pdf
https://www.harveylawcorporation.com/image/catalog/One Pagers/155177204660246600.pdf

When you do use their service, do feedback to me how well did it all went?

Edited June 7, 2019 by TTL2

[DK2223]

21 hours ago, MKumar said:

I can invest a maximum of half a million baht which is equal to one million Indian rupees. I would like to start the business in Pattaya or Phuket, two places I know very well, having spent a lot of time there during the last four years as a tourist. I am open to hiring Thais not only to meet the quota requirement which I believe is in the ratio of 4:1 but also for existential reasons - I cannot speak or write the Thai language for one thing.  I would not mind taking on expats if I can afford their services. I dont know how I can apply for work permits for the Thais and the expats before I get the necessary paperwork for myself. 

I am thinking on the lines of setting up a restaurant. 

You need to used/ consult with a lawyer. This will be the best way. I have just open a company last year and on the way of doing a WP using my company. If you need a good lawyer i can recommend him to you. My lawyer have done a great job with the my registration of my company. The minimum pay up capital for a WP is 2 million baht, or if you are married in Thailand then it will require 1 million baht. Remember WP requirements for non thai changes most of the time, and depends on the location you apply or set up the company. Remember using nominated thai partner no longer allow in Thailand. 

[Arkady]

In order to apply for a work permit, the company needs to be registered for VAT also, even if it cannot make the B180,000 monthly income threshhold normally needed for VAT registration.  This creates an additional filing cost in addition to the production of audited accounts, and other accounting and administrative requirements.  You have to show the social security payment records of the Thai employees required for the company to qualify for work permit and it is likely that someone will come round and check that they really exist as well as inspect your business premises to see if it looks like a genuine business.  They may refuse your work permit, if they are not convinced. You have to pay Thai staff a minimum of B9,000 a month and B15,000 a month if they have a bachelors degree or higher.

 

Setting up and running a company in Thailand is a fairly serious undertaking and I would think the first year's administrative and salary costs will eat up all of your B500,000 capital.  So, unless you have a business model you are certain will generate income and profits virtually from day one, you are likely to have a total loss within a few months.  Better to keep your life savings somewhere safe.  

[DJ54]

Restaurants is a tough business. If food quality is good and a reasonable price will take months to build a return customer base. 

 

Are you in the restaurant business now? 

[Isaanbiker]

1 hour ago, Arkady said:

In order to apply for a work permit, the company needs to be registered for VAT also, even if it cannot make the B180,000 monthly income threshhold normally needed for VAT registration.  This creates an additional filing cost in addition to the production of audited accounts, and other accounting and administrative requirements.  You have to show the social security payment records of the Thai employees required for the company to qualify for work permit and it is likely that someone will come round and check that they really exist as well as inspect your business premises to see if it looks like a genuine business.  They may refuse your work permit, if they are not convinced. You have to pay Thai staff a minimum of B9,000 a month and B15,000 a month if they have a bachelors degree or higher.

 

Setting up and running a company in Thailand is a fairly serious undertaking and I would think the first year's administrative and salary costs will eat up all of your B500,000 capital.  So, unless you have a business model you are certain will generate income and profits virtually from day one, you are likely to have a total loss within a few months.  Better to keep your life savings somewhere safe.  

The restaurant business seems to be one of the most difficult ones.

I've seen plenty of foreigners in my province who were struggling with their idea of running a restaurant that made any profit.

 

   In a place like Bangkok, or Pattaya, you'd need way more money for furniture, toilets, fire doors, etc...

 

  Before you even invest any money, try to Google as much as you can and you'll soon find out that it's almost impossible to have a successful business/restaurant.

 

    The visa situation is also not really in your favor. Best of luck. 

 

  

[MKumar]

On 6/7/2019 at 8:15 PM, DJ54 said:

Restaurants is a tough business. If food quality is good and a reasonable price will take months to build a return customer base. 

 

Are you in the restaurant business now? 

Yes in Bengaluru which folded up because of labour issues. Currently in Mumbai working for a friend. 

[MKumar]

Sorry it is my day off today. I havent been able to keep up with this topic. I have been a chef for over 18 years now - currently helping a friend with his catering business in Mumbai. Am in contact with a gentleman in Pattaya who wants to get into the food business himself and is looking for people who can help him. He has found a place which is rentable. I am interviewing a couple of boys who can come with me. We intend to start a small eatery. We intend to if possible deliver food right to your place on time - the food that you asked us to make to your specifications. So whatever you fancy, you can call and tell us a day in advance and we will stir it up for you. If you dont like the food at all, we will return your money next day; if it was okay but not satisfactory we will return half your money. That is the model which I intend use for my business. It worked in Bengaluru. The contact said I can use my 500k Baht to buy things for the business! But my contact is clueless about the bureaucratic bit. That is why I am here. Anybody wants to join me, please give me your number and I will call you on Whatsapp. 

Edited June 12, 2019 by MKumar
korrection

[MKumar]

On 6/7/2019 at 8:29 AM, Baerboxer said:

Are you an experienced businessman in India with a track record of making start-ups a success?

 

If yes, then do some sound research of the challenges of foreigners owning and operating a business in Thailand; the laws, processes, requirements and areas of opportunity in which you have experience.

 

If not, then do yourself a big favor and don't gamble with your life savings.

Am not really a businessman. Food exactly as you want it is my specialty. 

[MKumar]

On 6/7/2019 at 7:22 PM, Arkady said:

In order to apply for a work permit, the company needs to be registered for VAT also, even if it cannot make the B180,000 monthly income threshhold normally needed for VAT registration.  This creates an additional filing cost in addition to the production of audited accounts, and other accounting and administrative requirements.  You have to show the social security payment records of the Thai employees required for the company to qualify for work permit and it is likely that someone will come round and check that they really exist as well as inspect your business premises to see if it looks like a genuine business.  They may refuse your work permit, if they are not convinced. You have to pay Thai staff a minimum of B9,000 a month and B15,000 a month if they have a bachelors degree or higher.

 

Setting up and running a company in Thailand is a fairly serious undertaking and I would think the first year's administrative and salary costs will eat up all of your B500,000 capital.  So, unless you have a business model you are certain will generate income and profits virtually from day one, you are likely to have a total loss within a few months.  Better to keep your life savings somewhere safe.  

Makes sense. Lets see. Fingers crossed. 

[MKumar]

On 6/7/2019 at 12:14 PM, DK2223 said:

You need to used/ consult with a lawyer. This will be the best way. I have just open a company last year and on the way of doing a WP using my company. If you need a good lawyer i can recommend him to you. My lawyer have done a great job with the my registration of my company. The minimum pay up capital for a WP is 2 million baht, or if you are married in Thailand then it will require 1 million baht. Remember WP requirements for non thai changes most of the time, and depends on the location you apply or set up the company. Remember using nominated thai partner no longer allow in Thailand. 

Please send me the number of your lawyer's anyway and I will pass it on to my contact - the owner-to-be of my business in Pattaya. He lives there and is a Thai national of Indian origin. 

Edited June 12, 2019 by MKumar
korrection

[MKumar]

I have been to Thailand as a tourist four times.  I like the life as it is lived in Pattaya and the business is awesome. And my friend wants to start this business and he contacted me through a mutual friend. He first asked me how much I can invest and when I said i could invest no more than 500,000 Thai Baht ( www.xe.com) he asked me to get ready as a chef and a trainer. I am just helping him through learning stuff here from the posts in getting the paperwork done. Anybody interested in joining me welcome. If you specialise in cocktails - I am looking for you!  

[manchega]

If anyone can make a resteraunt work here an Indian can.  Indians, well Bangladeshi's mainly have succesfully opened resteraunts all over the UK in unfriendly climates.

It is not a special business so for every 1 expat / work permit you need 4 Thai, and I guess contributing to pensions etc.

 

 

[MKumar]

53 minutes ago, manchega said:

If anyone can make a resteraunt work here an Indian can.  Indians, well Bangladeshi's mainly have succesfully opened resteraunts all over the UK in unfriendly climates.

It is not a special business so for every 1 expat / work permit you need 4 Thai, and I guess contributing to pensions etc.

 

 

The proof of the pudding is in the eating. Bangladeshis are certainly hardworking, I have been told by many people. But Indians especially from northern states of UP, Punjab, Haryana can work really very long hours as if their life depended on it. True artists. Bengalis are not far behind.  I am a Rajasthani been living all my life in Bengaluru. Causing ecstasies of delight to the Western palate gives me the satisfaction like nothing else I can think of.  If I can have my way, i would recommend a special diet before you eat my food. Friends who come from Silicon Valley to visit the Silicon Valley of India ie Bengaluru for business mostly call me and I treat them in my humble home.  I cant afford to start my own restaurant in Bengaluru!!! Thai cuisine too is otherworldly. There is plenty to learn. 

Edited June 12, 2019 by MKumar
korrection