How Can I Set Up A Corporation?

[daveh]

I've been in Thailand for over a year now working as an English teacher. But I want to get back to my original tech field job. A friend of mine back has a start up company doing well in the States. We have been tossing around the idea of setting up a corporation here so I could work for him and remain here.

The company builds and sells network appliances used for network monitoring. Currently all customers are in the States, but there is interest from several Asian companies, so having an Asian presence would be good for the company.

We would like to set up a company that for now would be a one man show, me. Realistically, there probably wouldn't be any sales from this office for at least 6 months. So most of the money coming in would be transfered from the office in the States. Is this doable?

I've read http://www.thaivisa.com/314.0.html and it seems possible, but I am certainly not sure of the details of Thai laws. I would like to get in touch with someone who can help me set up a Thai corporation.

After reading the above page, the biggest question I have now is regarding the four Thai employees per work permit. I know these are required, but is there such a thing as having virtual employees? That is, real people that get paid a small fee just to have their names on record as employees.

Also, it looks as though in order to get a work permit, I would have to have a very real office. Initially, I was hoping to have a virtual office, then work out of my apartment. But since it seems I will need a real office, I was wondering if what the office real estate market is like. Is it possible to rent an office space that is fairly small, but has conference rooms potentially shared with other companies.

Anyone have any recommendations as to who can help me out?

Thanks.

Dave.

[dr_Pat_Pong]

Ask Sunbelt Asia or Indo-Siam. Links on Thaivisa.

[Sunbelt Asia]

Dave,

Our legal division will be glad to help. We now have six licensed lawyers on our staff. The fee is 3,900 Baht plus VAT for our legal fees for company registration, which is the lowest fees in Thailand. Work permit is 7,800 Baht.

More important our lawyers know the laws backwards and forwards. For instance you asked

After reading the above page, the biggest question I have now is regarding the four Thai employees per work permit. I know these are required, but is there such a thing as having virtual employees? That is, real people that get paid a small fee just to have their names on record as employees.

If you have a multi entry one year visa, then you do NOT need 4 Thai employees. For the work permit it is NOT required. It is only a requirement for the one year visa if you have a work permit.

If you were going to have a one year visa then the government will come around and check from time to time to see if the Thai employees are indeed real. Some companies do it but we don't advocate it. The great thing about Thailand is if you can not go down one path, you certainly can go another way but LEGALLY.

Also, it looks as though in order to get a work permit, I would have to have a very real office. Initially, I was hoping to have a virtual office, then work out of my apartment. But since it seems I will need a real office, I was wondering if what the office real estate market is like. Is it possible to rent an office space that is fairly small, but has conference rooms potentially shared with other companies.

With a one year visa, indeed a virtual office would be difficult. On a multi entry one year visa, it would be possible, if you don't employ any staff and as long as your Work Permit allowed you to work in Bangkok not just a certain office building. On a Virtual office we can help. Its 2,500 Baht per month

Sunbelt has a real estate division as well.www.property.th.com We have helped many people like you that share a service office. Different size units are available. Typical rent for a 12 SQ.M office in the Silom area for this is around 8,000- 15,000 per month. Usage of their secretary, conference room, fax machine, etc is extra. Just call Sarah Allen who is the Director in that department. She has been in real estate in Bangkok for 8 years and knows Bangkok. Her team is very good at listening and helping.. 02-642-0213

Look forward to hearing from you.

Regards,

Greg Lange

Managing Director

Sunbelt Asia Co., Ltd.

www.sunbeltasia.com

[Indo-Siam]

Hi Dave -

I am also happy to discuss alternatives with you. Just contact me via regular e-mail, so that I can reply with attachments.

Best regards,

Steve Sykes

Managing Director

Indo-Siam Group

Bangkok

[email protected]

www.thaistartup.com

[daveh]

If you have a multi entry one year visa, then you do NOT need 4 Thai employees. For the work permit it is NOT required. It is only a requirement for the one year visa if you have a work permit.

From this statement, I assume it means it is legal to work without a work permit, no? I was under the impression it was legal to work without a work permit as long as you were in the process of getting one.

Also, it seems to imply that I would have to make a visa run every 90 days. This does not seem a very attractive option as it will burn pages in my passport, not to mention being costly in both time and money. Am I correct in this understanding?

If I'm correct, then it may be cheaper than paying four Thai employees to do nothing. I suppose I could modify the purpose of the company to actually give Thai employees something to do on a tangent to the what I would be doing. But right now, I cannot think of a money making business for them to occupy their time.

[Sunbelt Asia]

From this statement, I assume it means it is legal to work without a work permit, no? I was under the impression it was legal to work without a work permit as long as you were in the process of getting one.

Under No way do we ever reco to work without a work permit even if you're not getting paid. What was stated was

If you have a multi entry one year visa, then you do NOT need 4 Thai employees. For the work permit it is NOT required. It is only a requirement for the one year visa if you have a work permit.

Again let me try it again

You need a work permit but you do not need 4 Thai employees to get one. If you want a one year visa for a business visa, then your employeer needs 4 Thai employees per work permit and pay you the minimum salary for your nationality. If you have a Multiple entry non immigrant visa then no such requirement exists of having 4 Thais per WP or minimum salary for your nationality. The only requirement is to have a Work Permit if you are working.

Also, it seems to imply that I would have to make a visa run every 90 days. This does not seem a very attractive option as it will burn pages in my passport, not to mention being costly in both time and money. Am I correct in this understanding?

Thats fine if you like the one year visa. You need to get it after you get your work permit. But then you must have 4 Thai employees. To be legal they cannnot be ghost employees. If you are hiring 4 Thais that you don't really need. The minimum salary is 5,100 Baht plus tax per employee. Then you have your minimum salary which could be 30,000 Baht higher and the tax needed to be paid. You may be looking at 80,000- 100,000 Baht more in expense every 90 days versus a 5,000 Baht trip to Singapore. Better to keep it for the company and grow.

If I'm correct, then it may be cheaper than paying four Thai employees to do nothing. I suppose I could modify the purpose of the company to actually give Thai employees something to do on a tangent to the what I would be doing. But right now, I cannot think of a money making business for them to occupy their time.

See above.

www.sunbeltasia.com