Non B 1 Year Extension !

[s_kates81]

Hello,

As it has been mentioned here already regarding the extension of Non B entry permit up to 1 year,that the requirments are

1,your new salary (according to 10 July 2004

2, 4 thai employees

3,Paid up 2000,000 captial

what i m confused is about paid up 2000,000 capital.As for my example,my company started since Jan 2004,but with paid up capital(about 1700,000) which i put in company's bank account,i,e. lesser than 300,000 .My company is doing business normally,with proper transactions.and normally,the money 1700,000 i have withdrawn already for business expenditures.My question is,the time i apply for my 1 year extension,Do i have to put in 2000,000 again in my company bank account?or No need?or any other substitute way for this?

[Sunbelt Asia]

My question is,the time i apply for my 1 year extension,Do i have to put in 2000,000 again in my company bank account?or No need?or any other substitute way for this?

No. These funds can be used towards your operation.

By the way its the registered capital that must be at least Baht 2 Million while the regulations state the operating capital must be at least Baht 1 Million. This is for the one year visa NOT the one year multi entry visa.

www.sunbeltasia.com

Note: The above is intended to provide general information only. The contents do not constitute legal advice and should not be relied upon as such. If legal advice or other expert assistance is required, the services of competent Thai professionals should be sought. Our firm employs eight such individuals. You're able if you like to meet a licensed lawyer employed by Sunbelt for your legal needs, the first meeting is always treated as a free consultation.

[s_kates81]

Thanks a lot Sunbelt.Yeah my company is registered 2 Million Baht,and the money i put in company's account at the time of starting was 1 Million 700 thousand ,so it means i don't need to put 2 Million again in my company.Coz u mentioned that the working capital must be at least 1 Million in order to get 1 year NON-B extension.

Yeah I m not talking about 1 Year NON-B multi entry.

[Indo-Siam]

Hi -

There is no requirenent to maintain a minumum balance, as such. The requirement is to have documentation that 2,000,000 baht in capital was at some point paid-in. Once documented, that status exists for the life of the company.

In theory, you should not have to place capital into the bank - but - from a practical perspective, that is the easiest way to obtain documentation to support Immigration processing.

One thing to note - you should pay in the full 2,000,000, and then - after that is paid in - you may immediately write a check to yourself, which your accountant will enter onto the books as "repayment of start-up loan by director". This is completely normal and accepted by Revenue office. Repayment of 300,000 baht director loan would be unremarkable. But - that money must first enter company records as capital pay-in. I suspect that some accountants can do "wire and mirror" tricks to make this money simply be recorded as capital pay-in - even though it never flowed through the company following receipt of company's tax registration.

But - to save headaches later - pay it all in after you have a bank account, and then repay yourself.

One other thing - although no minimum bank balance is required, you need to pay attention to your balance sheet - for later annual renewals. If you have no cash assets, then you better have some other capital assets accumulated - because if your balance sheet shows you as insolvent, both Labor Department and Immigration may refuse to renew your permits, unless you register and pay-in additional capital. Don't forget - depreciation of capital goods is carried on your balance sheet as a liability. If some guy (chuckling) manages to get an item of capital equipment recorded as "in kind" capitalization- at an inflated value - it comes back to bite him - in that 20% of that inflated value is accrued each year as a balance sheet liability.

Similarly - if you take cash, pre-pay for inventory coming in from overseas, and then have shipper declare a much lower value on the pro-forma invoice - so that you can lower your import duties, what you later (painfully) learn is that you converted - say 600,000 baht worth of cash - into say 250,000 baht worth of inventory. You just wiped 350,000 baht worth of assets off your balance sheet - genius that you are!

So - beware the "latent" disasters that lie in wait for the ignorant.

Good luck!

Steve Sykes

Managing Director

Indo-Siam Group

Bangkok

[email protected]

www.thaistartup.com