Being a company director without a work permit - OK or bad idea?

[tomster]

So here is my situation.

 

I have a work permit on a company that is registered in Pattaya, lets say Company A.

 

This is due to be renewed in July, but I will cancel this and get a new work permit on Company B which will be based in Chiang Mai (currently it's registered in Pattaya).

 

At the moment my girlfriend is director of company B and is signing for everything as we set the company up.

 

This has caused a lot friction and I really want to get her off as director at Company B and me on as the director so I can sign at the bank, customs etc.

 

I have asked the accountant if it's OK to do this and he has said yes, I can be the director of Company B without the work permit.

 

I will get the work permit in July anyway and could sort it earlier if needs be but it will be much more convenient in July.

 

So, my question is will the bank let me sign as director of Company B if my work permit is with Company A? And the same with governmental institutions such as customs etc.

 

Many thanks in advance.

[FriendlyFarang]

3 hours ago, tomster said:

So, my question is will the bank let me sign as director of Company B if my work permit is with Company A? And the same with governmental institutions such as customs etc.

Nobody cares if you have a work permit or not when signing documents (opening bank account for the company, tax, social security, visa, work permit, etc.).

When a foreigner registers a new company and is the director from start, they usually don't have a work permit yet, so they do all these things without one, and often with a tourist visa.

Edited April 6, 2023 by FriendlyFarang

[tomster]

1 hour ago, FriendlyFarang said:

Nobody cares if you have a work permit or not when signing documents (opening bank account for the company, tax, social security, visa, work permit, etc.).

When a foreigner registers a new company and is the director from start, they usually don't have a work permit yet, so they do all these things without one, and often with a tourist visa.

When I opened the bank account for Company A, KBank explicitly wanted my work permit. 

 

Might just have been an overzealous member of staff but they definitely wanted it. 

 

Hence my question. But you seem pretty sure that it's not required, so that helps me relax a bit, thanks for your feedback. 

[FriendlyFarang]

1 hour ago, tomster said:

When I opened the bank account for Company A, KBank explicitly wanted my work permit. 

I did all these things without a work permit after I had just opened my company. Bank accounts at Kasikorn and SCB. After having opened the company bank accounts I inquired if I can now also open a personal account with them… no, for a personal account I would need a work permit.

[BritTim]

You can be the director of as many companies as you like simultaneously. What you are able to do without a work permit is a grey area, and has changed over the years. In general, attending meetings and signing documents as a director does not require a work permit. Actual administration and management over and above this generally does need a work permit, but seems to be tolerated without if infrequent. I do not recall there ever being a problem with bank documents provided a directors' meeting has appointed you as one of the authorised signatories for documents with those criteria. It has been a long time ...

[Freddy42OZ]

10 hours ago, FriendlyFarang said:

I did all these things without a work permit after I had just opened my company. Bank accounts at Kasikorn and SCB. After having opened the company bank accounts I inquired if I can now also open a personal account with them… no, for a personal account I would need a work permit.

Many people open personal accounts without a WP as well.  I opened my Kbank account on a tourist visa.

[roo860]

1 minute ago, Freddy42OZ said:

Many people open personal accounts without a WP as well.  I opened my Kbank account on a tourist visa.

When was that?

[Taco]

If your wife is the director no issues but if your the director and don’t have a work permit you can not get work permits for your staff (Burmese)

[tomster]

Just now, Taco said:

If your wife is the director no issues but if your the director and don’t have a work permit you can not get work permits for your staff (Burmese)

That won't affect me, no need for Burmese staff. 

[Dan O]

14 minutes ago, Freddy42OZ said:

Many people open personal accounts without a WP as well.  I opened my Kbank account on a tourist visa.

I open a personal acct while on a visa exempt entry without a work permit and no Cert of Residency last Nov at Krungsri. One frequent commenter here claims it's impossible but I also know several others that have also in various provinces in the country. 

[Dan O]

I would be concerned about the friction with the GF. If your trying to remove her you may be faced with more friction or worse depending on what's causing it. Also any changes she could make before you remove her

[tomster]

6 minutes ago, Dan O said:

I would be concerned about the friction with the GF. If your trying to remove her you may be faced with more friction or worse depending on what's causing it. Also any changes she could make before you remove her

She wants to be removed. 

[scorecard]

1 hour ago, roo860 said:

When was that?

What 'era' might perhaps be relevant.

 

However the attiude of most/all banks on this point changes with the wind and it changes by bank even by branch. 

 

 

[Dan O]

1 hour ago, tomster said:

She wants to be removed. 

OK that's a much better reason than often happens. Hope it removes any unnecessary friction.

[Mad mick]

14 hours ago, FriendlyFarang said:

I did all these things without a work permit after I had just opened my company. Bank accounts at Kasikorn and SCB. After having opened the company bank accounts I inquired if I can now also open a personal account with them… no, for a personal account I would need a work permit.

I was given same answer several years back had my own company own property & motor bikes etc ++  l was lucky having my own bank account in name coz Married Thai at that time in 2011 after divorce told by K bank don't change bank from Ko Samui to Bkk as no longer Married,  bank told me leave it in Samui ! As l would now need work permit to have personal bank account. that's what l did no choice,  not been back Thailand since 2018 doubt ever will ! find Vietnam or Philippines way better to live as foreigner visas land or air no limits on border runs etc,. Philippines can stay upto 3 year on tourist visa without leaving the country.  on my way back  Philippines May 2023 , Vietnam been great though 

Edited April 7, 2023 by Mad mick

[DrJack54]

29 minutes ago, Mad mick said:

As l would now need work permit to have personal bank account.

A work permit is not required to open a Thai personal bank account. 

Edited April 7, 2023 by DrJack54

[tomster]

Just now, DrJack54 said:

A work permit is not needed to open a Thai personal bank account. 

It is with KBank, according to their customer services team that I just spoke with. 

[Maestro]

1 minute ago, tomster said:

It is with KBank, according to their customer services team that I just spoke with. 

Which type of "personal account" did you talk with K-Bank about, current account or savings account?

 

It's for the current account that banks usually want to see a work permit.

[DrJack54]

4 minutes ago, tomster said:

It is with KBank, according to their customer services team that I just spoke with. 

At most banks it should be possible with certificate of residence or letter from your embassy to confirm address in Thailand. 

Certainly would be with Kasikorn.

Where did you apply and what status in Thailand? 

Meaning ..tourist  visa, etc

[tomster]

1 minute ago, Maestro said:

Which type of "personal account" did you talk with K-Bank about, current account or savings account?

 

It's for the current account that banks usually want to see a work permit.

Didn't specify that 

[khunPer]

23 hours ago, tomster said:

So, my question is will the bank let me sign as director of Company B if my work permit is with Company A? And the same with governmental institutions such as customs etc.

Your bank won't ask for a work permit, but an up-to-date print of the company registration where you are stated as director and with full power.

 

You don't need a work permit to be director in a company limited, but it's board functions you can perform, not daily duties or acting as a managing director. In principle you can perform top level duties like loan- or investment contracts in the bank, but you cannot on behalf of the company write regular deposit slips, that is a employee's job.

[BritTim]

Banks prefer that you have a work permit because it provides a decent assurance that the account will be an active one. Banks dislike opening accounts for tourists where the effort of setting it up is wasted when the account just languishes unused.  That said, the work permit is not a non negotiable requirement. There are various ways you can often persuade them.