Benefits to having a company name (land ownership)

[Anythingleft?]

As many people either set up or purchase a property/land in a company name are there any benefits attached to having the company name.

Does it help with a business start up of any nature, does it benefit in any way at all except for having the original property as a formality in paperwork?

 

Just wondering if there are any ways that this business name can be used outside of the original property records for any advantage ...

 

[mark5335]

The standard Thai company objectives include carrying on a business such as retails/wholesale trade etc. So you could undertake such activity in your Thai company.

 

Apart from facilitating land ownership a key advantage to owning the property in your Thai company name is that if you later choose to sell the property, it can be done a by a simple share transfer (for transfer of ownership of the company at the Dept of Business Development) rather than a land sale at the Land Office. This means that you won't need to pay the Transfer Tax etc. which can be quite a saving.

 

On the downside, with the company you'll have unavoidable annual fixed costs for filing of company tax returns and audit (say, about THB50K)

[FriendlyFarang]

45 minutes ago, Anythingleft? said:

Does it help with a business start up of any nature

You have the company already. I assume if it's just to hold property it won't be registered for VAT, so after you register it for VAT and employ 4 Thais you could then get a work permit and run some actual business with it.

 

4 minutes ago, mark5335 said:

Apart from facilitating land ownership a key advantage to owning the property in your Thai company name is that if you later choose to sell the property, it can be done a by a simple share transfer (for transfer of ownership of the company at the Dept of Business Development) rather than a land sale at the Land Office. This means that you won't need to pay the Transfer Tax etc. which can be quite a saving.

But this can also bite you in the ass if it suddenly turns out that the company has debts or outstanding taxes about which the seller didn't inform you.

 

6 minutes ago, mark5335 said:

On the downside, with the company you'll have unavoidable annual fixed costs for filing of company tax returns and audit (say, about THB50K)

50k is way too much.

[sungod]

41 minutes ago, FriendlyFarang said:

50k is way too much.

Agreed,  13,000 to 15,000 should be closer.

[Anythingleft?]

Many thanks for the replies, something's I did not know at all..