Owning a business but not working in it.

[bamboozled]

As per the title, as a foreigner, can we own a business, finance that business, but not "work" in it? I'm pretty sure there are plenty of folks doing this, especially restaurants/bars, but when I run it through my mind I can't quite figure it. Is it that the foreigner owner has a Thai partner? Otherwise, how could the business be a legal entity? And does that matter? Certainly, there are plenty of locals running businesses and hiring employees but they are not registered. But I don't think that would be a good idea for a foreigner. Are there agents to help with this?

 

Hmm, now that I jostle my memory, I suppose that's what I did about 15 years ago. I had set up a business and my lawyer and a Thai friend were the partners. I held 49% and the two of them split the other 51%. At the time, 1,000,000 baht registered collateral was needed but it was just on paper and didn't need to be coughed up. I think one can no longer get away with that and that the money needs to be deposited. I could be wrong. Interesting side note... This business I had set up eventually lay dormant for at least 3 - 5 years as it wasn't needed any longer. My lawyer advised me to close it as I still had to pay him to do yearly accounting, etc... If I remember, he wanted 30k or 40k to close it: "oh, we have to do this, that, the other thing, it's complicated." This was 10 years ago, or so. That seemed like a lot. In the end, my wife and I went to some government office and closed it ourselves. Total cost? 150 baht.

 

Is a work permit needed in such an instance? I think not...as one is not technically "working" but just an owner.

 

So, perhaps I answered my own question but if folks would care to weigh in, that would be appreciated. Any people running a business legally as described above?

 

Thank you, Bamboozled.

[gwapofarang]

13 minutes ago, bamboozled said:

As per the title, as a foreigner, can we own a business, finance that business, but not "work" in it? I'm pretty sure there are plenty of folks doing this, especially restaurants/bars, but when I run it through my mind I can't quite figure it. Is it that the foreigner owner has a Thai partner? Otherwise, how could the business be a legal entity? And does that matter? Certainly, there are plenty of locals running businesses and hiring employees but they are not registered. But I don't think that would be a good idea for a foreigner. Are there agents to help with this?

 

Hmm, now that I jostle my memory, I suppose that's what I did about 15 years ago. I had set up a business and my lawyer and a Thai friend were the partners. I held 49% and the two of them split the other 51%. At the time, 1,000,000 baht registered collateral was needed but it was just on paper and didn't need to be coughed up. I think one can no longer get away with that and that the money needs to be deposited. I could be wrong. Interesting side note... This business I had set up eventually lay dormant for at least 3 - 5 years as it wasn't needed any longer. My lawyer advised me to close it as I still had to pay him to do yearly accounting, etc... If I remember, he wanted 30k or 40k to close it: "oh, we have to do this, that, the other thing, it's complicated." This was 10 years ago, or so. That seemed like a lot. In the end, my wife and I went to some government office and closed it ourselves. Total cost? 150 baht.

 

Is a work permit needed in such an instance? I think not...as one is not technically "working" but just an owner.

 

So, perhaps I answered my own question but if folks would care to weigh in, that would be appreciated. Any people running a business legally as described above?

 

Thank you, Bamboozled.

Owned three different businesses over a 34 year period here. The million baht capitalization was still in effect as of 2019. That hasn't changed if at all during the entirety of my time here if memory serves.

 

If you are American, the 51/49 rules does not apply at there's a treaty between the US and Thailand. I cannot speak directly to other countries lawyers are for that.

 

A work permit is only required if you are on premises clearly engaging in work like accounting or marketing. Certain activities are restricted. In my case being a restaurant and hotel owner I was not allowed to do jobs Thais can do like bartender or waiting tables etc. This is clearly stipulated in Thai labor law. Make sure you understand that side of it. Due diligence is required.

 

I've know countless business owners without a work permit just be aware of the parameters.

[bamboozled]

Thanks for the reply, Gwapo. Yes, I'm from USA. Doesn't the special treaty involve companies with a fairly substantial investment such as 100s of thousands of dollars? I seem to recall figures that were far above what I have to invest. Basically, I want to sell online to North America and Europe but need to hire one or two people to do the shipping/organizing/stock keeping, etc... So I don't need to do that work but would over-see it and give direction. I do remember from looking into this in the past that because we are foreigners, there is no inexpensive way to start a business here. "Inexpensive" is all relative but I am not a rich guy. Hmm, I'm married now to a Thai but not for much longer. I will need 4 Thai employees, accountant, social security, pay myself 50k, and all that jazz?

 

The million baht has to be deposited in an account some where, correct? It wasn't ever necessary to show that money when I had the business years ago. To be clear, I had incorporated that business just to be able to legally invoice my expenses to another business that I was part of in Italy. Legally, it was my Italian partner's and I wasn't on any documents...being American. It didn't cost much to start at the time. But I never had to hire anyone or bill anyone so there were many aspects I didn't learn about.

[Captain Monday]

Rule number three.. 

(3) Do not open a business

[blackcab]

You do not need a work permit if you are a shareholder, which makes sense.

 

If I buy shares in Bangkok Bank, I wouldn't expect them to obtain a work permit for me.

[FritsSikkink]

12 minutes ago, Captain Monday said:

Rule number three.. 

(3) Do not open a business

Nonsense, if you know how to run a business, you can make good money.

The big problem is many businesses are opened by foreigners who never ran a business before in their lifetime and know hardly anything about the country, the laws and the language. On top of that they do this together with a girl they found in a bar that has max 3 years of education. 

[TravelerEastWest]

Consider a sole proprietorship using the treaty of Amity.

 

I think the US Embassy paperwork may be free for a sole proprietorship a company maybe $60 plus paperwork?

 

Maybe 2,000 Thai baht to file plus some other fees not expensive at all for a sole proprietorship...

[Captain Monday]

12 minutes ago, FritsSikkink said:

Nonsense, if you know how to run a business, you can make good money.

The big problem is many businesses are opened by foreigners who never ran a business before in their lifetime and know hardly anything about the country, the laws and the language. On top of that they do this together with a girl they found in a bar that has max 3 years of education. 

One of the best things to happen is you become successful.

Then Thai copycats open up two doors down  steal your parking, and grass  to authorities on false grievances based on jealousy.

 

 

[OneMoreFarang]

2 hours ago, bamboozled said:

I had set up a business and my lawyer and a Thai friend were the partners. I held 49% and the two of them split the other 51%. At the time, 1,000,000 baht registered collateral was needed

Now two shareholder are enough,

I am pretty sure you need a lot less than a million capital for a Thai company without farang workpermit.

 

And then there is the VAT registration: Without a farang work permit you don't need this up to a certain turnover. I think you can have < 1.8 mTHB turnover per year without registering VAT.

[gwapofarang]

2 hours ago, bamboozled said:

Thanks for the reply, Gwapo. Yes, I'm from USA. Doesn't the special treaty involve companies with a fairly substantial investment such as 100s of thousands of dollars? I seem to recall figures that were far above what I have to invest. Basically, I want to sell online to North America and Europe but need to hire one or two people to do the shipping/organizing/stock keeping, etc... So I don't need to do that work but would over-see it and give direction. I do remember from looking into this in the past that because we are foreigners, there is no inexpensive way to start a business here. "Inexpensive" is all relative but I am not a rich guy. Hmm, I'm married now to a Thai but not for much longer. I will need 4 Thai employees, accountant, social security, pay myself 50k, and all that jazz?

 

The million baht has to be deposited in an account some where, correct? It wasn't ever necessary to show that money when I had the business years ago. To be clear, I had incorporated that business just to be able to legally invoice my expenses to another business that I was part of in Italy. Legally, it was my Italian partner's and I wasn't on any documents...being American. It didn't cost much to start at the time. But I never had to hire anyone or bill anyone so there were many aspects I didn't learn about.

The treaty applies to all American citizens doing business in Thailand, the capitalization of 1 million baht I believe (80% sure its still the same) is the minimum, mine ended up being 5 million due to the amount of employees and revenue reported over decades of time. The capitalization amounts are sliding scale based on your no. of employees which I believe is five people, per million.

 

No fixed account deposit was required just the opening of a business account for transparency/verification reasons.

 

Keep the following in mind if you feel you need to incorporate: (note bold)

 

You gotta pay monthly withholding taxes on your salary which is a minimum of 50K and those of your employees. This needs to be filled out in Thai and filed monthly at your local tax office. There are three different "Por lor" tax forms (Social Security, Withholding and VAT)  All must be up to date with your income figures and employee salary disbursements. Then Por Lor 53 at the end of each year for the annual tax on profits.  Keep in mind the taxes may vary from business to business or may not apply at all. I'm just telling you what I had to do as a restaurant business.

 

You do get the Thai Health Insurance card which, believe it or not is rather good. You pay withholding monthly 3%   The income tax on a sliding scale. Same for your employees.

"Creative accounting" skills are needed to minimize your liabilities, this can be done many number of ways.

 

Based on your description, it's not worth it. The reasons for my "transparency" are simple, high exposure and liability. This involves insurance, if somebody breaks there neck on your property or place of business, for example.

 

What the above gives you is an umbrella liability protection as a "business entity" and a company chop for all formal documentation that needs to be submitted to any Thai government office.

 

I hope this answers your questions as it's based on many years hands on experience. And some lumps along the way. Some of the exact numbers may be outdated or a slight mistake on my part. Watch out for shady Thai lawyers they are a dime a dozen. Same all over the world not singling out Thais, they simply withhold information if they see a buck.

 

I wish you only the very best of luck

 

[FritsSikkink]

3 hours ago, Captain Monday said:

One of the best things to happen is you become successful.

Then Thai copycats open up two doors down  steal your parking, and grass  to authorities on false grievances based on jealousy.

 

 

Nobody steals from me unpunished and there is nothing to grass. We own the land, so no rent to pay and family working for us who live for free. My cost will always be lower than the competition.

[bamboozled]

2 hours ago, gwapofarang said:

The treaty applies to all American citizens doing business in Thailand, the capitalization of 1 million baht I believe (80% sure its still the same) is the minimum, mine ended up being 5 million due to the amount of employees and revenue reported over decades of time. The capitalization amounts are sliding scale based on your no. of employees which I believe is five people, per million.

 

No fixed account deposit was required just the opening of a business account for transparency/verification reasons.

 

Keep the following in mind if you feel you need to incorporate: (note bold)

 

You gotta pay monthly withholding taxes on your salary which is a minimum of 50K and those of your employees. This needs to be filled out in Thai and filed monthly at your local tax office. There are three different "Por lor" tax forms (Social Security, Withholding and VAT)  All must be up to date with your income figures and employee salary disbursements. Then Por Lor 53 at the end of each year for the annual tax on profits.  Keep in mind the taxes may vary from business to business or may not apply at all. I'm just telling you what I had to do as a restaurant business.

 

You do get the Thai Health Insurance card which, believe it or not is rather good. You pay withholding monthly 3%   The income tax on a sliding scale. Same for your employees.

"Creative accounting" skills are needed to minimize your liabilities, this can be done many number of ways.

 

Based on your description, it's not worth it. The reasons for my "transparency" are simple, high exposure and liability. This involves insurance, if somebody breaks there neck on your property or place of business, for example.

 

What the above gives you is an umbrella liability protection as a "business entity" and a company chop for all formal documentation that needs to be submitted to any Thai government office.

 

I hope this answers your questions as it's based on many years hands on experience. And some lumps along the way. Some of the exact numbers may be outdated or a slight mistake on my part. Watch out for shady Thai lawyers they are a dime a dozen. Same all over the world not singling out Thais, they simply withhold information if they see a buck.

 

I wish you only the very best of luck

 

Yes, that's about what I thought/remember, Gwapo. It's a shame it's not easier to open a business as it would give gainful employment to a few people. I'll have to put my thinking cap back on. What I really need is to be reborn Thai. Problem solved.

 

Thanks everybody for the input.

Bam

 

 

 

 

 

 

 

[bamboozled]

5 hours ago, TravelerEastWest said:

Consider a sole proprietorship using the treaty of Amity.

 

I think the US Embassy paperwork may be free for a sole proprietorship a company maybe $60 plus paperwork?

 

Maybe 2,000 Thai baht to file plus some other fees not expensive at all for a sole proprietorship...

Perhaps that paperwork is inexpensive but I think Gwapo is right that there are many other things that must be paid for to keep everything legal. The bar is far too high for me, unfortunately.

[gwapofarang]

4 hours ago, bamboozled said:

Perhaps that paperwork is inexpensive but I think Gwapo is right that there are many other things that must be paid for to keep everything legal. The bar is far too high for me, unfortunately.

Thank you sir, again my post is based on real work actual experience. The only possible discrepancies is 4 years of removed since the last time I was actually involved. I paid on the level personal income tax, social security and all the rest of it for a solid 30 year period. Very familiar with many others who have done much the same including my late father.

 

My Dad had paid into the system for the better part of 40 years. His Thai wife is still receiving a little over 12,000 baht a month social security pension because of his vigilance. Additionally, he was afforded the TOTAL benefits of the Thai health care system in the final days of his life. This included about 3 months of hospital stays in community facilities, a sped up CT scan and preferential treatment across the board. The entirety of which would have cost a minimum of 5 million baht possibly double that. The total out of pocket expenses came out to 200 baht. This was only because I requested detailed documentation of all charges in one particular instance which involved a 20 day stay.

 

There's a story within a story in regards to how everything worked out in the end. Suffice to say I must commend the care, dignity and professional nature of the Thai medical professionals during this entire process, nurses, doctors and administrators a like. I have nothing but respect for their genuine concern. My respect for Thai culture and their morality was elevated to top notch. These are rare qualities in life these days ANYWHERE in the world.

 

The key to making things "painless" was a relentless nature of asking every possible question and talking to the right people in charge. I became acquainted with the laws in place.

 

It was surprisingly easy to fill out all the paperwork and get the results their laws afforded and ultimately provided. Again, total respect for their "system". Never thought I'd say that for any government institution I've been involved it but it's the absolute truth. I have the receipts to prove it.

 

My hopes by sharing this is that it may spark a positive outcome for others who may read this in later days. I'd be happy to answer any questions and provide any experience or have direct knowledge about. I would hope others might do the same.

 

In closing, yes it's costly but at the end of the day it was worth it if you wish to remain "above board" and simply try to do the right thing according to Thai law (I know say or think what you will). Finding the right advice and lawyers during the entire time was always overpriced plus a struggle regardless of friendship and familiarity.

[Captain Monday]

17 hours ago, FritsSikkink said:

Nobody steals from me unpunished and there is nothing to grass. We own the land, so no rent to pay and family working for us who live for free. My cost will always be lower than the competition.

I followed a group of Kite Boarders" to the Gulf once.

 

Met a british lad who had opened a Kite boarding school

 

Thai guy he trained to be a guide stole equipment, opened his own shop.

 

The Brit guy seemed not too bothered by that he said the sport has unlimited potential in Thailand during the right wind seasons. Eventually shut down because of  bent officials and officers with ever increasing monetary demands made it hardly worth it to continue.

 

Of course there are many successful foreign owned businesses I just never had entreprenurial spirit 

[bamboozled]

11 hours ago, gwapofarang said:

Thank you sir, again my post is based on real work actual experience. The only possible discrepancies is 4 years of removed since the last time I was actually involved. I paid on the level personal income tax, social security and all the rest of it for a solid 30 year period. Very familiar with many others who have done much the same including my late father.

 

My Dad had paid into the system for the better part of 40 years. His Thai wife is still receiving a little over 12,000 baht a month social security pension because of his vigilance. Additionally, he was afforded the TOTAL benefits of the Thai health care system in the final days of his life. This included about 3 months of hospital stays in community facilities, a sped up CT scan and preferential treatment across the board. The entirety of which would have cost a minimum of 5 million baht possibly double that. The total out of pocket expenses came out to 200 baht. This was only because I requested detailed documentation of all charges in one particular instance which involved a 20 day stay.

 

There's a story within a story in regards to how everything worked out in the end. Suffice to say I must commend the care, dignity and professional nature of the Thai medical professionals during this entire process, nurses, doctors and administrators a like. I have nothing but respect for their genuine concern. My respect for Thai culture and their morality was elevated to top notch. These are rare qualities in life these days ANYWHERE in the world.

 

The key to making things "painless" was a relentless nature of asking every possible question and talking to the right people in charge. I became acquainted with the laws in place.

 

It was surprisingly easy to fill out all the paperwork and get the results their laws afforded and ultimately provided. Again, total respect for their "system". Never thought I'd say that for any government institution I've been involved it but it's the absolute truth. I have the receipts to prove it.

 

My hopes by sharing this is that it may spark a positive outcome for others who may read this in later days. I'd be happy to answer any questions and provide any experience or have direct knowledge about. I would hope others might do the same.

 

In closing, yes it's costly but at the end of the day it was worth it if you wish to remain "above board" and simply try to do the right thing according to Thai law (I know say or think what you will). Finding the right advice and lawyers during the entire time was always overpriced plus a struggle regardless of friendship and familiarity.

It's a shame that one has to start out right from the gate with a lot of money or it's a no-go. No chance to ease into it as the set-up fee alone is high. Thanks so much for your help.

 

 

[gwapofarang]

1 hour ago, bamboozled said:

It's a shame that one has to start out right from the gate with a lot of money or it's a no-go. No chance to ease into it as the set-up fee alone is high. Thanks so much for your help.

 

 

Always a pleasure never a chore. You might consider looking into outsourcing as an alternative business model or perhaps go by way of the digital nomad route. In my experience the latter is done 9 times out of 10. The above is really for liability concerns in high exposure environments. Outsourcing is a massive industry in the Philippines with turnkey solutions galore, perhaps this could be an option. Food for thought.

[bamboozled]

4 minutes ago, gwapofarang said:

Always a pleasure never a chore. You might consider looking into outsourcing as an alternative business model or perhaps go by way of the digital nomad route. In my experience the latter is done 9 times out of 10. The above is really for liability concerns in high exposure environments. Outsourcing is a massive industry in the Philippines with turnkey solutions galore, perhaps this could be an option. Food for thought.

You never really no your exposure until you get your legs get taken out. And then hindsight is 20-20. Digital nomad is possible but I would like to hire some help/workers and without a legal business it would worry me.

[Sigma6]

21 hours ago, gwapofarang said:

the capitalization of 1 million baht I believe (80% sure its still the same) is the minimum, mine ended up being 5 million due to the amount of employees and revenue reported over decades of time

To be clear: the capitalization doesn not require this amount to be available ? Its a 'on paper' figure, right?

I think the OP sees this as the blocker to start

[gwapofarang]

13 minutes ago, bamboozled said:

You never really no your exposure until you get your legs get taken out. And then hindsight is 20-20. Digital nomad is possible but I would like to hire some help/workers and without a legal business it would worry me.

That would depend on how you structure your cash flow but I get what you are saying. Online businesses and the revenue derived is commonly classified as "individual" income to forgo the hassle of incorporation. I've done it this way myself earning separate streams of income on that basis since 1995.

[gwapofarang]

20 minutes ago, Sigma6 said:

To be clear: the capitalization doesn not require this amount to be available ? Its a 'on paper' figure, right?

I think the OP sees this as the blocker to start

Good question, I know it can be a bit ambiguous. Let me qualify.

 

Yes, a bond or fixed deposit account is not required for most types of businesses. Banking or finance sector related entities as an example are subject to being bonded in some fashion.

 

Keep in mind I'm American, so those from other countries are subject to whatever laws of your locale. I'm referring to the treaty references above. The EU for example has some pretty rigid big brother policies.

[bamboozled]

17 minutes ago, Sigma6 said:

To be clear: the capitalization doesn not require this amount to be available ? Its a 'on paper' figure, right?

I think the OP sees this as the blocker to start

Thanks for the input. When I opened a business 15 years ago, the money in the bank was not required, at least initially. I vaguely recall the lawyer might have said that eventually I would need to deposit that money. But I can't be sure. I also checked with a lawyer about my wife opening a sole proprietorship and I thought she said the money had to be deposited. This was about 3 years ago. The first lawyer was a whack job so perhaps he didn't mind bending the rules. The second lawyer I believe to be more upstanding/plays by the rules and perhaps that is why she said I needed the money (if indeed she said that). Things have changed since 15 years ago and gotten more stringent so it didn't surprise me.

 

I think I worded my beginning statement perhaps incorrectly. My real desire would be to hire one or two employees to run a small online business. Not one where I would do work but pay others to do it. But to do this above the boards and cover my butt seems to require a whole bunch of paperwork and fees and taxes apart from the million baht capitalization. So it just doesn't make sense or cents.

[gwapofarang]

34 minutes ago, bamboozled said:

Thanks for the input. When I opened a business 15 years ago, the money in the bank was not required, at least initially. I vaguely recall the lawyer might have said that eventually I would need to deposit that money. But I can't be sure. I also checked with a lawyer about my wife opening a sole proprietorship and I thought she said the money had to be deposited. This was about 3 years ago. The first lawyer was a whack job so perhaps he didn't mind bending the rules. The second lawyer I believe to be more upstanding/plays by the rules and perhaps that is why she said I needed the money (if indeed she said that). Things have changed since 15 years ago and gotten more stringent so it didn't surprise me.

 

I think I worded my beginning statement perhaps incorrectly. My real desire would be to hire one or two employees to run a small online business. Not one where I would do work but pay others to do it. But to do this above the boards and cover my butt seems to require a whole bunch of paperwork and fees and taxes apart from the million baht capitalization. So it just doesn't make sense or cents.

You need to open a business account after you get incorporated for tax reasons. In my experience with Thai lawyers, many will say they can deliver everything and end up doing either nothing or are entirely incompetent. Some end up costing you more in time or even penalties.

 

This is why I mentioned them above. "Shop" for a good experienced lawyer. Best way is to ask a few people with a established businesses. Due diligence is the key and proper leg work.

 

Things are certainly more integrated these days. You should definately look into the outsourcing route, this is common and scalable to your needs. They offer full service virtual offices too. Personally, I would not worry about liability based on what you have written.

 

Much less stressful too as the paper work involved takes time and up to date accounting. I used to do it myself thus my knowledge. I had one of my managers fill out the required tax forms in Thai giving her the input and output (VAT) numbers. Many hire an accountant on retainer for this, not worth it IMHO.

[bamboozled]

Thanks Gwapo. I had opened a business account via the lawyer and he had an in-house person to do the accounting. It was a legit business just that I was only using it to invoice another company abroad to invoice my expenses. So the accounting was very simple: no employees, no billing. He delivered what he said he would but I can't comment really if his cost was high or not. He just had a weird way about him and would talk talk talk while saying absolutely zero. It was an amazing ability. I DID realize he was full of it when I closed the company for 150 baht compared to 30/40k quoted by him.

[khunPer]

On 7/24/2023 at 7:09 AM, bamboozled said:

As per the title, as a foreigner, can we own a business, finance that business, but not "work" in it? I'm pretty sure there are plenty of folks doing this, especially restaurants/bars, but when I run it through my mind I can't quite figure it. Is it that the foreigner owner has a Thai partner? Otherwise, how could the business be a legal entity? And does that matter? Certainly, there are plenty of locals running businesses and hiring employees but they are not registered. But I don't think that would be a good idea for a foreigner. Are there agents to help with this?

 

Hmm, now that I jostle my memory, I suppose that's what I did about 15 years ago. I had set up a business and my lawyer and a Thai friend were the partners. I held 49% and the two of them split the other 51%. At the time, 1,000,000 baht registered collateral was needed but it was just on paper and didn't need to be coughed up. I think one can no longer get away with that and that the money needs to be deposited. I could be wrong. Interesting side note... This business I had set up eventually lay dormant for at least 3 - 5 years as it wasn't needed any longer. My lawyer advised me to close it as I still had to pay him to do yearly accounting, etc... If I remember, he wanted 30k or 40k to close it: "oh, we have to do this, that, the other thing, it's complicated." This was 10 years ago, or so. That seemed like a lot. In the end, my wife and I went to some government office and closed it ourselves. Total cost? 150 baht.

 

Is a work permit needed in such an instance? I think not...as one is not technically "working" but just an owner.

 

So, perhaps I answered my own question but if folks would care to weigh in, that would be appreciated. Any people running a business legally as described above?

 

Thank you, Bamboozled.

A foreigner – except US citizens – can only own 49 percent of a business. US citizens can own a business 100 percent under the amity agreement. You can however be partner without having a work permit, as long as you don't work, apart from functions as a board member-director.

 

Normally foreigners will be shareholder in a company limited, which recently changed to that only two shareholders are needed, it used to be three. With preferred shares one shareholder can have a majority of votes, without majority of shares. Often a registered capital of 2 million baht is adviced, this sum is also a requirement for one work permit for an alien.

[bamboozled]

51 minutes ago, khunPer said:

A foreigner – except US citizens – can only own 49 percent of a business. US citizens can own a business 100 percent under the amity agreement. You can however be partner without having a work permit, as long as you don't work, apart from functions as a board member-director.

 

Normally foreigners will be shareholder in a company limited, which recently changed to that only two shareholders are needed, it used to be three. With preferred shares one shareholder can have a majority of votes, without majority of shares. Often a registered capital of 2 million baht is adviced, this sum is also a requirement for one work permit for an alien.

Thanks Khun Per, it's all too expensive for me.

[XGM]

On 7/25/2023 at 4:04 AM, khunPer said:

apart from functions as a board member-director.

I believe acting as a director might also be deemed as work and require a WP, strictly speaking. As for only owning shares in a company, of course, no WP required.

[khunPer]

8 hours ago, XGM said:

I believe acting as a director might also be deemed as work and require a WP, strictly speaking. As for only owning shares in a company, of course, no WP required.

Not on board level, it was changed to less restrictions a few years ago. But you cannot be managing director without a work permit.

[Beachcomber]

I've been in a similar situation with my own insurance business. I owned it but didn't work in it for a while. Managing it from afar was challenging, especially dealing with administrative tasks and ensuring everything was compliant.

 

In your case, it sounds like you did a great job figuring out how to structure your business legally. The key is having trusted partners or agents who can handle the day-to-day operations and compliance issues. It’s definitely wise to avoid any gray areas, especially as a foreigner.

 

What worked for me eventually was finding some good insurance back office solutions. These services took over the administrative tasks, like policy checking and handling proposals, which made a huge difference. It allowed me to focus on the strategic side of the business without worrying about the daily grind.