Registering a business in Thailand

[rapidwtr]

Seasons Greetings!

 

I've been working in Chiang Mai and Mae Sot for several years with ngo's and about to start my own consultancy working with US and Thai/Sub-Mekong region organizations. I am from the US and thought it would make sense to register it there, but now I wonder if it should be registered in Thailand. Around 50% of my work in Thailand would be consulting with Thai organizations, and the rest remote work for US projects.

 

Does anyone know where I can find resources to dig into this? Any benefits for a visa for a registered business?

 

Thanks in advance, merry Christmas and happy festvus!

[blackcab]

It depends on a number of things. First of all, are you in need of a work permit in Thailand? Would you like your newly created business to provide that? Secondly, do you have to issue invoices from a company registered within Thailand, or can you digitally invoice from outside of Thailand?

 

The best financial solution for you would be to keep your consultancy offshore and send digital invoices payable by, for example, Stripe. This would lower your administrative overhead to as low as possible.

 

As soon as you incorporate a Thai company you will be on the merry-go-round of monthly accountant fees, annual auditor fees, having to provide copies of your business registration, personal income tax, social fund, corporation tax, etc. It can get tedious very quickly.

 

If you do register a business in Thailand it has the potential to supply you with an annual Non-B extension of stay for the purpose of working for a Thai limited company and a work permit, but these are complex to obtain and many Thai businesses pay for an agent to do this for them.

 

If, on the other hand, all you had to do in Thailand was attend business meetings, you would not need a Non B visa or extension of stay, or a work permit. Technically, if you did your consulting work outside of Thailand you wouldn't be working in Thailand and you also wouldn't be paying Thai income tax.

 

Of course many people consult in this way by typing reports on a laptop while they are within Thailand and absolutely nobody knows if they don't tell anyone. Absolute sticklers for rules might travel to, for example, Laos for a couple of days to write their report and press send to transmit the email while they were there.

 

If it were my choice, I would legally structure everything offshore and save considerable administrative expense and taxation.

[bigt3116]

As you are an American;

 

https://en.wikipedia.org/wiki/Treaty_of_Amity_and_Economic_Relations_(Thailand–United_States)

 

 

[khunPer]

On 12/22/2023 at 8:02 AM, rapidwtr said:

I am from the US and thought it would make sense to register it there, but now I wonder if it should be registered in Thailand. Around 50% of my work in Thailand would be consulting with Thai organizations, and the rest remote work for US projects.

 

Does anyone know where I can find resources to dig into this? Any benefits for a visa for a registered business?

As an American citizen you have the benefit to own a business in Thailand, there is shared a link to Wikipedia in an above post, and there is a link to lawyer's site about it HERE.

 

As foreigner, you cannot work as a self-employed consultant in Thailand, you need to be employed. As US-citizen you can own a company, which requires a registered capital of 2 million baht. The company can hire you and you can apply for a work permit; however, there are restrictions for a work permit for a foreigner. In general a registered capital of 2 million baht is needed for the first foreigner's work permit plus 4 Thai employees; however, check with BOI if there are exceptions for specialist work.

 

If you are married to a Thai and obtains extension of stay based on marriage, you can apply for a work permit. Otherwise you need a non-immigrant type-B (business) visa.

 

The get extension of stay based on work (permit), the immigration needs documentation for minimum salary, which for US-citizens is 50,000 baht per month.

[timendres]

27 minutes ago, khunPer said:

The get extension of stay based on work (permit), the immigration needs documentation for minimum salary, which for US-citizens is 50,000 baht per month.

 

And then you can add the costs of the business and work permit, as well as the required employees.

 

Having run a business established under the Amity treaty, my expenses ran about 5,000 baht per month for accounting services, roughly 50,000 baht per year for the work permit and extension renewals, and then the costs of having my employees (salaries and taxes). The costs are not trivial, and can be a bit painful if not supported by actual income from the business. On the other hand, if the money is flowing, then you can easily pay for these headaches to disappear.

 

Oh, and then there is the cost of setting up the company. As mentioned, 2M baht for proper capitalization, and the costs of establishment, which ran roughly 180,000 baht in my case (it can be done cheaper).

Edited December 23, 2023 by timendres

[rapidwtr]

Hey, thanks a lot for all of the great responses here. This gives me a lot to consider and provides good direction, much appreciated!

 

I need the most clarity about invoicing Thai organizations if I'm a US registered consultant, as it relates to being aware of what I can get away with and what I really need in order to comply, etc.

 

Looking forward to digging into this. Thanks again everyone! 

 

Happy 2024

[bigt3116]

15 hours ago, timendres said:

roughly 50,000 baht per year for the work permit and extension renewals

 

Seems awfully expensive?

 

Work permit 3100 baht

Extension 1900 baht

 

Total 5000

[timendres]

8 hours ago, bigt3116 said:

Seems awfully expensive?

 

Work permit 3100 baht

Extension 1900 baht

 

Total 5000

 

Good luck with that.