Starting a business with Thai partner without work permit?

[Gman1992]

Hello!

I want to start a small business with a thai partner.
From my understanding, in order to grant me a work permit and business visa there is a requirement of 2,000,000 THB in capital for the business. 

As I don't have this kind of money at the moment and the business is just something small we would like to try out together and see how it grows, what is the best option for setting up such a business as of now?

I would of course like it be as legal as possible, but the requirement for the 2 million baht is a steep on at the moment.

Any and all input and help is greatly appreciated in this!

[FritsSikkink]

You can start the business as a shareholder.

[ctxa]

The thing here is that 2,000,000 THB (~60,000 USD) is barely enough money to open a single restaurant! I don’t think you can open a restaurant in Bangkok with 2M. 
 

So there is a chance that your business here may be something online, or something else which clearly doesn’t require even 2M Baht. So you’ll probably be fine just by being a shareholder, and in the meantime staying in Thailand with whatever other visa you are currently holding. In the future if it gets big and you reach the 2M you can then convert the visa and get the work permit.

[ezzra]

What ever you do, make sure that this partnership is well cemented, recorded and witnessed and fully documented and that your investment is protected in any way possible just to be sure, a legal advice will also be a good idea...

[Gman1992]

9 hours ago, ctxa said:

The thing here is that 2,000,000 THB (~60,000 USD) is barely enough money to open a single restaurant! I don’t think you can open a restaurant in Bangkok with 2M. 
 

So there is a chance that your business here may be something online, or something else which clearly doesn’t require even 2M Baht. So you’ll probably be fine just by being a shareholder, and in the meantime staying in Thailand with whatever other visa you are currently holding. In the future if it gets big and you reach the 2M you can then convert the visa and get the work permit.

Thanks for your input (and the others as well). It looks like being a shareholder from the start is the easiest option starting out.

But then the issue of the Visa comes up. Is there a good VISA  to stay here (currently on tourist visa) while building the business as a shareholder?

This might be the wrong part of the forum for this question and if so I apologize.

[ctxa]

1 hour ago, Gman1992 said:

Thanks for your input (and the others as well). It looks like being a shareholder from the start is the easiest option starting out.

But then the issue of the Visa comes up. Is there a good VISA  to stay here (currently on tourist visa) while building the business as a shareholder?

This might be the wrong part of the forum for this question and if so I apologize.

Well, if I were in your situation, I'd very much rather be with a Non-Immigrant VISA than with a tourist VISA. 

Mainly because, I am unsure of whether legally you can take part in a business as a shareholder while holding a tourist VISA, but by definition a tourist VISA is not really meant for business is it? 

You then have different options: 

 - Non-Immigrant based on volunteer work (many VISA agents offer this one for a fee). 

 - Non-Immigrant based on marriage. 

 - Non-Immigrant based on retirement.

Etc...

 

 

[Gman1992]

  

2 minutes ago, ctxa said:

Well, if I were in your situation, I'd very much rather be with a Non-Immigrant VISA than with a tourist VISA. 

Mainly because, I am unsure of whether legally you can take part in a business as a shareholder while holding a tourist VISA, but by definition a tourist VISA is not really meant for business is it? 

You then have different options: 

 - Non-Immigrant based on volunteer work (many VISA agents offer this one for a fee). 

 - Non-Immigrant based on marriage. 

 - Non-Immigrant based on retirement.

Etc...

 

 

 

Thank you very much for the information! And you are right it might be harder with the tourist VISA.

I'm not old enough for retirement (not even close to 50 haha) and I don't have anyone to marry as of now.
So I guess the volunteer work one is best option for me.

Can you or anyone here recommend a good agent that can help me with getting this VISA?

Edited March 21, 2021 by Gman1992

[Smithson]

The 2m is registered capital, you don't need to actually Investment. I think it relates to liability in case of bankruptcy, but I'm no expert.

 

You could also considered a limited partnership which is simpler. This is what we did and when things were successfully we switched to Ltd Company

[ChaiyaTH]

The 2M is registered capital indeed, the least of your problems as it doesn't need to be liquid to get a WP. You would need 4 employees instead, so after your Thai partner being one, 3 more. That is why the majority has the visa issue in the first place too.

[bshimself]

On 4/6/2021 at 6:24 AM, Smithson said:

The 2m is registered capital, you don't need to actually Investment. I think it relates to liability in case of bankruptcy, but I'm no expert.

 

You could also considered a limited partnership which is simpler. This is what we did and when things were successfully we switched to Ltd Company

I ma actualy in the same situation ,   I want to start a small shop or salon ,  beauty massage etc . . and I ma just me alone but has a thai gf -  would it be better to buy or lease ? can I lease instead and is there stil a requirement for 2m   baht ?  as I dont have so much   - am not retired - still work in europe.. 

[bshimself]

On 4/6/2021 at 6:24 AM, Smithson said:

The 2m is registered capital, you don't need to actually Investment. I think it relates to liability in case of bankruptcy, but I'm no expert.

 

You could also considered a limited partnership which is simpler. This is what we did and when things were successfully we switched to Ltd Company

Limited partnership ? that soudns like it can be my option how does that work and cost ? a setup of a company ?

[bwanajohn]

Find a good lawyer . They exist in Thailand and are much better informed about legal/business matters than 95% of people on TV.

[LukKrueng]

As was mentioned already, the 2m is registered capital, not cash and it is the limit of the liability. For an Ltd company you must have 3 shareholders and you can own up to 49%  so your liability is up to 980k.

In a limited partnership only 1 partner can be protected by the "limited partnership" and the other is liable for the rest. Easier to set up but not advisable. 

And if course, as mentioned already - for a work permit you must employ 4 Thai nationals and you can only get the wp for positions allowed for foreigners. You also have to show why you have to carry this job and not let a local do it. 

[Eric Loh]

https://www.thethailandlife.com/starting-a-business-in-thailand#:~:text=To enter Thailand with the purpose of doing,Thai Embassy or consulate in your home country.

[l4ml4m]

you start and say nothing to anyone !

 

[sead]

You have misunderstood alot. 2m thb doesn't mean in cash. I don't have time to explain it all for you but you need to dig in little bit more info. If you open a small shop then you don't need it registered up to 1m baht. When I wanted to register my shop for tax they kicked out me and my gf and told us to come and register for tax when we are making more than 600,000 thb per month. 

[fakser]

But you can hold maximum 49 %

[Satcommlee]

12 hours ago, bwanajohn said:

Find a good lawyer . They exist in Thailand and are much better informed about legal/business matters than 95% of people on TV.

 

That still leaves 5% of Thai Visa posters that are better than good Thai Lawyers LOL

[bshimself]

On 4/27/2021 at 4:10 AM, bwanajohn said:

Find a good lawyer . They exist in Thailand and are much better informed about legal/business matters than 95% of people on TV.

Thank you yes I contacted two laywers - through a friend in TH  - but they dont work    very fast - so patience...

[Joe Medina]

It depends if your company will fall under a Limited Partnership or possibility of FBL. May I know if you are still searching for an answer