Thai Staff Requirement

[Sunbelt Asia]

Thank you. Wouldn't the individual have to be some sort of company to send an invoice for consulting? Or could this individual be a sole proprietorship? Or even just a person without a registered company?

I've seen it happen with a person who had no registered company and he sent a invoice. He just needed to show his copy of passport and 3% tax was withheld. If the work was performed in Thailand with him doing it here, different story. Confirm this with your auditor.

www.sunbeltasiagroup.com

[CosmicSurfer]

Thank you. Wouldn't the individual have to be some sort of company to send an invoice for consulting? Or could this individual be a sole proprietorship? Or even just a person without a registered company?

I've seen it happen with a person who had no registered company and he sent a invoice. He just needed to show his copy of passport and 3% tax was withheld. If the work was performed in Thailand with him doing it here, different story. Confirm this with your auditor.

www.sunbeltasiagroup.com

I'm in this exact situation now... I have to pay someone a "commission" for Design Consultant work done. He's in Canada. He can send me an invoice as an Individual (Architect), but I don't understand how he can present his Passport (being as he is in Canada.)

My company in Canada is a Sole Propietership (owned by my Thai Wife.) My wife is also a Senior Accountant. She is aware of the 15%, but not the 3% option.

How can we insure only a 3% Tax payment (what Tor #) vs a 15% payment?

Thanks

CS

[cosmont]

Is it possible to get a work permit ? (only one thai staff)

yes

www.sunbeltasiagroup.com

Dear Sunbelt,

The 2 millions Baht capital is not fully paid, it is not a problem ?

Thanks

Edited May 27, 2007 by cosmont

[Sunbelt Asia]

Thank you. Wouldn't the individual have to be some sort of company to send an invoice for consulting? Or could this individual be a sole proprietorship? Or even just a person without a registered company?

I've seen it happen with a person who had no registered company and he sent a invoice. He just needed to show his copy of passport and 3% tax was withheld. If the work was performed in Thailand with him doing it here, different story. Confirm this with your auditor.

www.sunbeltasiagroup.com

I'm in this exact situation now... I have to pay someone a "commission" for Design Consultant work done. He's in Canada. He can send me an invoice as an Individual (Architect), but I don't understand how he can present his Passport (being as he is in Canada.)

My company in Canada is a Sole Propietership (owned by my Thai Wife.) My wife is also a Senior Accountant. She is aware of the 15%, but not the 3% option.

How can we insure only a 3% Tax payment (what Tor #) vs a 15% payment?

Thanks

CS

If they have a local Thai bank account or if you write a local check to the foreign individual, then its 3% withholding tax on service. Form Por Ngor Dor #3 If you wire money to the individual overseas, then its 15% withholding tax. Form Por Ngor Dor #54

The 2 millions Baht capital is not fully paid, it is not a problem ?

The Labor Dept does not require proof the 2 million Baht was deposited in the Thai bank acct. Why? Because under section 1108 paragraph (5) of the Civil Commercial Code the shares are not required to be paid up by cash but can be paid up as well with services or property(meaning inventory or equipment).

www.sunbeltasiagroup.com

[Arkady]

Sunbelt,

Do foreigners need to get work permits to be partners in either unregistered partnerships, registered unlimited liability partnerships or limited partnerships? The situation would that of one foreign partner (non-American) with two Thai partners and the foreign partner is an investor who is not a managing partner and doesn't even work in the business. I assume that he would still need a work permit but would be happy to be told otherwise. Thanks.

[Sunbelt Asia]

Sunbelt,

Do foreigners need to get work permits to be partners in either unregistered partnerships, registered unlimited liability partnerships or limited partnerships? The situation would that of one foreign partner (non-American) with two Thai partners and the foreign partner is an investor who is not a managing partner and doesn't even work in the business. I assume that he would still need a work permit but would be happy to be told otherwise. Thanks.

If he does not work in Thailand or sign company paperwork such as audits inside Thailand, he does not need a work permit. He may need to show proof that he was outside the country when signing the audit if he ever applies for the work permit later.

www.sunbeltasiagroup.com

[cosmont]

Sunbelt,

Do foreigners need to get work permits to be partners in either unregistered partnerships, registered unlimited liability partnerships or limited partnerships? The situation would that of one foreign partner (non-American) with two Thai partners and the foreign partner is an investor who is not a managing partner and doesn't even work in the business. I assume that he would still need a work permit but would be happy to be told otherwise. Thanks.

If he does not work in Thailand or sign company paperwork such as audits inside Thailand, he does not need a work permit. He may need to show proof that he was outside the country when signing the audit if he ever applies for the work permit later.

www.sunbeltasiagroup.com

Does the fact that the foreigner and shareholder sign company paperworks (banque cheques and/or audits documents as director) obliged him to owned a work permit ????

Edited July 1, 2007 by cosmont

[Sunbelt Asia]

Does the fact that the foreigner and shareholder sign company paperworks (banque cheques and/or audits documents as director) obliged him to owned a work permit ????

Yes a work permit is required if they are signing paperwork inside Thailand. A work permit is not required if the Director is signing outside Thailand and is not working for the company in Thailand.

www.sunbeltasiagroup.com

[seykota]

Sunbelt,

We want to create a sole propriorship (my wife) that will be based in Nong Bua Lamphu, however the income will come from offshore. I will be required to work as a "consultant" for the business and I will be providing the consultancy services from Thailand.

My question is:

How do we create the business, can you provide the service from Bangkok (the business is in Nong Bua)?

This is the preferred option as we will need to speak with you regarding the wording of the consultancy role for the work permit as it involves several industries (but not Engineering or Architecture).

Thanks

[seykota]

Hi Sunbelt,

I just found some information you have provided in another forum after I posted the previous post:

He does not need any Thai employees to get a work permit unless he sets up a sole propriorship or his wife does. Even with the extension of stay, he would simply get the extension of stay based on being married to a Thai national rather than the extension of stay based on business. It does not require 4 Thai employees to get the extension of stay based on being married to a Thai national. The company would not have to make a profit as well.

I would like to have a work permit to cover my butt, and the advice you have given above does seem to be an easier process than setting up a sole propriorship or am I missing something? I am on a multiple entry "o" visa (my wife and son).

Best I come to your office in person?

[Sunbelt Asia]

My question is:

How do we create the business, can you provide the service from Bangkok (the business is in Nong Bua)?

Our Sunbelt office in Udon Thani can help you. The # is 085-852-2702. Roger is the office mgr and a licensed lawyer in the USA.

www.sunbeltasiagroup.com

[Sunbelt Asia]

Hi Sunbelt,

I just found some information you have provided in another forum after I posted the previous post:

He does not need any Thai employees to get a work permit unless he sets up a sole propriorship or his wife does. Even with the extension of stay, he would simply get the extension of stay based on being married to a Thai national rather than the extension of stay based on business. It does not require 4 Thai employees to get the extension of stay based on being married to a Thai national. The company would not have to make a profit as well.

I would like to have a work permit to cover my butt, and the advice you have given above does seem to be an easier process than setting up a sole propriorship or am I missing something? I am on a multiple entry "o" visa (my wife and son).

Best I come to your office in person?

Like everyone’s hand and fingerprints, every case is different. So many different variables for each person which suits them. Pros and cons to every type of formation and work permit requirements so for that it’s best to meet.

www.sunbeltasiagroup.com