Approximate Start Up and Running Costs for Ltd Company

[davis121]

Would appreciate some input from those that have experience with limited companies in Thailand

 

This is what I have so far from a few online sources and one visa company in Phuket (all THB)....

 

Upfront Costs

Company Set Up - 35,000

 

Annually

Accounts and Audited Accounts - 30,000

Work Permit - 15,000

Corporation Tax - 2,000

 

Monthly

Personal Tax on 50,000 - 3541 (not sure which exemptions might apply to single person - possibly just 30K?)

Accounting - 3,500

3 x Staff Social Security - 4,500

 

2 Million Capital - Can this be a directors loan which is effectively not repaid or does it need to be 25% paid up...or are there other options?

 

Appreciate any sensible replies ????

 

[BestB]

2 minutes ago, davis121 said:

 

Upfront Costs

Company Set Up - 35,000

 

Annually

Accounts and Audited Accounts - 30,000

Work Permit - 15,000

Corporation Tax - 2,000

 

Monthly

Personal Tax on 50,000 - 3541 (not sure which exemptions might apply to single person - possibly just 30K?)

Accounting - 3,500

3 x Staff Social Security - 4,500

 

2 Million Capital - Can this be a directors loan which is effectively not repaid or does it need to be 25% paid up...or are there other options?

Upfront about right 

annual audits depends on the business but I pay 17000-18000

WP if done by accountant or lawyer is about right, but will need 4 staff or at least paid SS for 4 staff

tax on 50000 is under 3000 baht.

SS minimum is about 990 baht per person 

yes 2 million can be a loan 

[davis121]

4 minutes ago, BestB said:

Upfront about right 

annual audits depends on the business but I pay 17000-18000

WP if done by accountant or lawyer is about right, but will need 4 staff or at least paid SS for 4 staff

tax on 50000 is under 3000 baht.

SS minimum is about 990 baht per person 

yes 2 million can be a loan 

 

Brilliant thanks appreciate the input - I had 3 x 1500 for SS so I guess should be 4 x 990 (3960)?

Edited January 19, 2020 by davis121

[BestB]

6 minutes ago, davis121 said:

 

Brilliant thanks appreciate the input - I had 3 x 1500 for SS so I guess should be 4 x 990 (3960)?

Yes ???? but technically speaking it’s only need to be paid and shown about 3 months prior to reapply for WP and visa extention, could get away not having to pay for other 9 months , however keep in mind for visa extension, immigration comes out to place of business to take pics and have a chat with at least 1 staff but want all 4 present 

Edited January 19, 2020 by BestB

[scorecard]

Upfront Costs

Company Set Up - 35,000

 

Can be much cheaper, but there are Thai and western lawyers who will charge much much higher outrageous rip-off fees.

 

Reality is that the actual registartion process at the Thai Companies Registration office is not complex, not all that time consuming, and not all that expensive.

 

There are accountancy firms and business agencies who regularly do this work, aften at fees well under 35,000.

 

And I'm aware of at least one professional property agency who can and do handle all of the above, and they also 'sell' company set-ups where sellers don't (after property sale) need the company set up and the agency helps sell the company name to other folks. Needs of course to be an agency with a proven record of ethics, etc. The agency I'm aware of did this for me when I sold my house about 6 years ago. Luckily they had a buyer (not of my property) who nneded a company set up, so it was win-win all around.

 

Don't believe a lawyer who tells you that companies must be set up by a lawyer registered in Thailand, not true.

 

Annually

Accounts and Audited Accounts - 30,000

Many accountants handle both items including preparation and lodging of the annual Company report to the Thai companies office, for way under 30,000.

 

When I had a company my registered accountant (in Pattaya) handled both for around 12,000Baht annually all up, last time I did this was around 6 years ago. Then I sold the company name.

 

(Keep in mind, unless it's changed the Audit must be handled by a sepearte company, but easy for an accountant to manage both items). 

 

Work Permit - 15,000

Preparation of the applications forms is quite simple and lodging the application is also simple, unless it's changed recently the actual fees to gain 1 one year work permit is around 3,800Baht.

 

The accountant I mentioned above handles work permits. 

 

Don't believe lawyers who tell you it is to be handled by a registered lawyer. Not true.

 

Don't believe lawyers who tell you the work permit negotiation is very complex therefore needs a lawyer. There is no negotiation. All not true.

 

Corporation Tax - 2,000

Edited January 26, 2020 by blackcab
Orange font removed

[davis121]

1 hour ago, BestB said:

Yes ???? but technically speaking it’s only need to be paid and shown about 3 months prior to reapply for WP and visa extention, could get away not having to pay for other 9 months , however keep in mind for visa extension, immigration comes out to place of business to take pics and have a chat with at least 1 staff but want all 4 present 

thanks! ????

[davis121]

On 1/19/2020 at 10:12 AM, scorecard said:

Upfront Costs

Company Set Up - 35,000

 

Can be much cheaper, but there are Thai and western lawyers who will charge much much higher outrageous rip-off fees.

 

Reality is that the actual registartion process at the Thai Companies Registration office is not complex, not all that time consuming, and not all that expensive.

 

There are accountancy firms and business agencies who regularly do this work, aften at fees well under 35,000.

 

And I'm aware of at least one professional property agency who can and do handle all of the above, and they also 'sell' company set-ups where sellers don't (after property sale) need the company set up and the agency helps sell the company name to other folks. Needs of course to be an agency with a proven record of ethics, etc. The agency I'm aware of did this for me when I sold my house about 6 years ago. Luckily they had a buyer (not of my property) who nneded a company set up, so it was win-win all around.

 

Don't believe a lawyer who tells you that companies must be set up by a lawyer registered in Thailand, not true.

 

Annually

Accounts and Audited Accounts - 30,000

Many accountants handle both items including preparation and lodging of the annual Company report to the Thai companies office, for way under 30,000.

 

When I had a company my registered accountant (in Pattaya) handled both for around 12,000Baht annually all up, last time I did this was around 6 years ago. Then I sold the company name.

 

(Keep in mind, unless it's changed the Audit must be handled by a sepearte company, but easy for an accountant to manage both items). 

 

Work Permit - 15,000

Preparation of the applications forms is quite simple and lodging the application is also simple, unless it's changed recently the actual fees to gain 1 one year work permit is around 3,800Baht.

 

The accountant I mentioned above handles work permits. 

 

Don't believe lawyers who tell you it is to be handled by a registered lawyer. Not true.

 

Don't believe lawyers who tell you the work permit negotiation is very complex therefore needs a lawyer. There is no negotiation. All not true.

 

Corporation Tax - 2,000

 

 

Thanks I did think that about Accounts and audit....will shop around and see what prices i can find in Phuket

[maisodni]

I have run an incorporation services company in Bangkok since 2003, having helped start more than 280 Thai companies.

 

The first thing that you need to know is that per each work permit that the company will seek to sponsor, the required amount of registered capital is:

 

1)  Per each foreigner with a Thai spouse:  1,000,000 baht

2)  Per each foreigner who is NOT married to a Thai spouse:  2,000,000 baht   

 

Those fees are important in order to calculate just the FIXED government fees required, in order to incorporate - no matter which service provider you use (but many providers do not even mention these fees when giving you a quotation):

 

1.   Government capital registration fee for Memorandum of Association (MOA):   500 baht

2.   Government application fee for MOA:    400 baht

3.   Government application fee for incorporation:    700 baht

4.   Government capital registration fee for incorporation):   Minimum fee: 5,000 baht, plus 100 baht.   Calculated fee:  5 baht per each 1,000 baht of registered capital, plus 100 baht.

5.   Government work permit application fee:  100 baht

6.   Government work permit approval fee:  3,100 baht

 

There are also government fees for processing of applications for Immigration extensions (if needed) and for any required company registration changes.

 

Make sure that whomever you use to incorporate your business tells you their fees to prepare and process applications for:

 

1.   Social Fund registration

2.  Tax and VAT registration

3.  WP.3 form, if needed

4.  Assistance putting together all documents needed in order to open a company bank account.

5.  Employee personal income tax registrations for any Thai or foreign employees who have not previously been employed in Thailand.

 

For an additional fee, companies like mine can also provide (usually temporarily) a lawful initial company registration address, a "custodial" Thai company director, and even one or more Thai "nominee" shareholders.

 

Preparation and processing of programs such as Thai BOI applications, Thai-US Amity Treaty applications,  and Thai Representative or Thai Regional Offices also involve other fees.   

 

If a Thai service provider does not address all applicable fees mentioned above - on their own, without you asking for it - then you should walk away from that provider, because they are not being honest with you.

 

I will be happy to reply to any private messages sent to me. 

[VocalNeal]

I recon about 16,000 a month. Not including salaries, rent, utilities, et al. It is not all monthly some is annually but if calculated as monthly.

 

Company set up depends on agent, lawyer. We did not deposit or have to show any money.

Edited January 20, 2020 by VocalNeal

[maisodni]

I stand corrected on part of my earlier posting:

 

As read:

 

Those fees are important in order to calculate just the FIXED government fees required, in order to incorporate - no matter which service provider you use (but many providers do not even mention these fees when giving you a quotation):

 

1.   Government capital registration fee for Memorandum of Association (MOA):   500 baht

2.   Government application fee for MOA:    400 baht

3.   Government application fee for incorporation:    700 baht

4.   Government capital registration fee for incorporation):   Minimum fee: 5,000 baht, plus 100 baht.   Calculated fee:  5 baht per each 1,000 baht of registered capital, plus 100 baht.

 

Should read:  (based on changes that were put into place on  April 18, 2018)

 

It is important to determine the FIXED government fees required, in order to incorporate - no matter which service provider you use (but many providers do not even mention these fees when giving you a quotation):

 

1.   Government capital registration fee for Memorandum of Association (MOA):   500 baht

2.  Government capital registration fee for incorporation):    5,000 baht

3.   Government fee for Company Certificate page:    100 baht

4.   Government fee for Duty Stamp:        400 baht

5.    Government fee for Incorporation Affidavit:    800 baht

 

'Sorry about the incorrect version - which was out of date.

[taninthai]

8220 bht is my monthly outlay for 4  Thai staff tax and social fund and 1 ferang ,the monthly account fee of 2500 bht is included in that..

you have to have an office set with signs and immigration will come to the office to take pictures of you with your staff in the office and in front of sign....there is also tax to pay for the sign.

Edited January 22, 2020 by taninthai