Starting A Small Business

[Ploughboy]

I am, or will be soon, on a “retirement” visa. I am thinking of investing about 2 million baht in a small retail enterprise. I have the following questions:-

1. I do not intend to work in the business other than check the books and stock to protect my interests. Do I need a work permit?

2. Can I run it as a sole proprietorship (or perhaps a joint proprietorship with another farang) or do I need to set up a company? I do not have a Thai wife to help in this respect.

3. What steps do I need to take to ensure that I can get my money including profit, if any, out of Thailand?

4. Is there any minimum amount that I am required to invest? (I heard something about 3 million baht, but advice on this is confusing following recent changes.

Most information I can find seems to be aimed at larger investors and I would appreciate any advice I, as a little man can get. Thanks

Edited June 30, 2007 by Maestro
Unusaual font formatting for entire post removed.

[torrenova]

Technically, your checking the books and stock would require a permit, thus requiring a company, thus requiring accounts, thus requiring 4 staff on the payroll, thus requiring paid up capital, not just registered, thus adding loads of costs for what seems a very small amount of control you want.

A quick guestimate of costs would be 650*4*12 = 31,200 in employee social costs, 4500 * 12 = 54,000 in your tax payments on 50k per month, 20k legal fees, 20k permits and 40k accountancy and other costs. This gives a total of around 165k per year.

Your company would have to technically make 800k or so profits a year to pay you the 600k minimum salary required for your permit. It depends upon what you do with the business but you'd better think of something which can cover its costs or alternatively, reduce those costs by not having a permit and perhaps looking at having a stock control system in place and reviewing the books at home.

[Wekhin]

1. If it is a company or partnership, you, as a shareholder/partner, have a right to check her book and stock. But you cannot involve in managing/operating the business. In this case, you do not need work permit.

2. Yes, you can. But the owner/partner who runs the business must have work permit.

3. Have a good bookkeeping practice. It will verify the source of your money and profits.

4. It depends on whether you want a work permit which require a minimum of 2M baht.

[soundman]

I don't think you are eligable to work & therefore obtain a work permit on a retirement visa.

Soundman.

[Sunbelt Asia]

1. I do not intend to work in the business other than check the books and stock to protect my interests. Do I need a work permit?

If you are not working, you do not need a work permit (being a shareholder and looking at the books, is not working. If you sign for the company however inside Thailand, you are working.

2. Can I run it as a sole proprietorship (or perhaps a joint proprietorship with another farang) or do I need to set up a company? I do not have a Thai wife to help in this respect.

Depends on your nationality and the type of business.

3. What steps do I need to take to ensure that I can get my money including profit, if any, out of Thailand?

Pay taxes.

4. Is there any minimum amount that I am required to invest? (I heard something about 3 million baht, but advice on this is confusing following recent changes.

It depends on many variables... such as your nationality, your marriage status, type of business, how the company was set up.

For most its 2 million Baht registered capital and most feel that means this must be paid up in cash. However this is not required if the company states so in the minutes when setting up the company.

If you are married to a Thai and are a minor shareholder of less than 49% of the shares) the registered capital can be one million Baht. This again does not need to be cash.

If you are American and set up a sole proprietorship, you do not need any registered capital. You will need two Thai employees however with you being married to a Thai to get the work permit. ( 4 Thai employees if you are single)

Most information I can find seems to be aimed at larger investors and I would appreciate any advice I, as a little man can get. Thanks

We work with many SMEs and would be happy to help you..

Technically, your checking the books and stock would require a permit, thus requiring a company, thus requiring accounts, thus requiring 4 staff on the payroll, thus requiring paid up capital, not just registered, thus adding loads of costs for what seems a very small amount of control you want.

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.

www.sunbeltasiagroup.com

[Ploughboy]

1. I do not intend to work in the business other than check the books and stock to protect my interests. Do I need a work permit?

If you are not working, you do not need a work permit (being a shareholder and looking at the books, is not working. If you sign for the company however inside Thailand, you are working.

2. Can I run it as a sole proprietorship (or perhaps a joint proprietorship with another farang) or do I need to set up a company? I do not have a Thai wife to help in this respect.

Depends on your nationality and the type of business.

3. What steps do I need to take to ensure that I can get my money including profit, if any, out of Thailand?

Pay taxes.

4. Is there any minimum amount that I am required to invest? (I heard something about 3 million baht, but advice on this is confusing following recent changes.

It depends on many variables... such as your nationality, your marriage status, type of business, how the company was set up.

For most its 2 million Baht registered capital and most feel that means this must be paid up in cash. However this is not required if the company states so in the minutes when setting up the company.

If you are married to a Thai and are a minor shareholder of less than 49% of the shares) the registered capital can be one million Baht. This again does not need to be cash.

If you are American and set up a sole proprietorship, you do not need any registered capital. You will need two Thai employees however with you being married to a Thai to get the work permit. ( 4 Thai employees if you are single)

Most information I can find seems to be aimed at larger investors and I would appreciate any advice I, as a little man can get. Thanks

We work with many SMEs and would be happy to help you..

Technically, your checking the books and stock would require a permit, thus requiring a company, thus requiring accounts, thus requiring 4 staff on the payroll, thus requiring paid up capital, not just registered, thus adding loads of costs for what seems a very small amount of control you want.

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.

www.sunbeltasiagroup.com

Thanks Sunbelt. When I have made up my mind I will make an appointment. Thanks everyone else.

[maxtingtong]

1. I do not intend to work in the business other than check the books and stock to protect my interests. Do I need a work permit?

If you are not working, you do not need a work permit (being a shareholder and looking at the books, is not working. If you sign for the company however inside Thailand, you are working.

2. Can I run it as a sole proprietorship (or perhaps a joint proprietorship with another farang) or do I need to set up a company? I do not have a Thai wife to help in this respect.

Depends on your nationality and the type of business.

3. What steps do I need to take to ensure that I can get my money including profit, if any, out of Thailand?

Pay taxes.

4. Is there any minimum amount that I am required to invest? (I heard something about 3 million baht, but advice on this is confusing following recent changes.

It depends on many variables... such as your nationality, your marriage status, type of business, how the company was set up.

For most its 2 million Baht registered capital and most feel that means this must be paid up in cash. However this is not required if the company states so in the minutes when setting up the company.

If you are married to a Thai and are a minor shareholder of less than 49% of the shares) the registered capital can be one million Baht. This again does not need to be cash.

If you are American and set up a sole proprietorship, you do not need any registered capital. You will need two Thai employees however with you being married to a Thai to get the work permit. ( 4 Thai employees if you are single)

Most information I can find seems to be aimed at larger investors and I would appreciate any advice I, as a little man can get. Thanks

We work with many SMEs and would be happy to help you..

Technically, your checking the books and stock would require a permit, thus requiring a company, thus requiring accounts, thus requiring 4 staff on the payroll, thus requiring paid up capital, not just registered, thus adding loads of costs for what seems a very small amount of control you want.

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.

www.sunbeltasiagroup.com

This is valid too for an italian setting up a restaurant?

My thai wife can setup a sole proprietorship and can request me to obtain the wp? (among to emply 2 thai)

Many thanks

Max

[cynthialee]

50k $ in a small retail enterprise will not generate large amounts of money where you will have to worry about taking it out of the country. sound like a thai girl got a hold of another one..............lol.

a retired guy willing to invset 50$ k in a small venture in thailand attempting to cash out just doesnt sound right.

Edited July 8, 2008 by cynthialee

[eddiemonster]

Hi Everyone

Can I just clarify this:

if I start a Thai company, which then leases a restaurant/cafe/bar, so long as I do no physical work on the premises, but check the books off premises and then sign off the accounts overseas I do not need a work permit?

Thanks for any clarification on this.

[farang555]

hey arjuna

why dont you go to see sunbelt in person. being cluless id say they will tell you no. then you can ask the ? all over again here to see if someone will override sunbelts answer.