creating company in thailand...is it worth it?

[parafareno]

i would have it to work with clients all over the world online.... and also to invest in some USA stocks etc....

how much does it cost to create a company....how much tax to pay on stock profits...  is the owner anonymous etc

I stay In thailand few month per year..but now I will be 50 yo so retirement visa is an option....  is it better to create company in phillipines or Cambodia?

i want something cheap and affordable....

 

[scubascuba3]

Sounds garbled 

[CharlieH]

Why dont you contact a few agents who can do all this for you and get some quotes ?Fo the same in the other areas you frequent assuming you have bank accounts there too, and see which is the most viable.

[CanadaSam]

It seems that you do not need to incorporate in Thailand because the only benefits are here you could buy land/house and also possibly get a work permit.

 

IMO, Thailand is the least desirable of countries to form a limited company, due to constantly changing rules, high taxation, and stict scrutiny by the authorities.

 

Almost any other should be better for you, I would research neighbors and other options first.

 

I know you can form a company in Delaware, USA without even being present there, and get the most favourable tax rates out of all the states in the USA.

[khunPer]

6 hours ago, parafareno said:

i would have it to work with clients all over the world online.... and also to invest in some USA stocks etc....

how much does it cost to create a company....how much tax to pay on stock profits...  is the owner anonymous etc

I stay In thailand few month per year..but now I will be 50 yo so retirement visa is an option....  is it better to create company in phillipines or Cambodia?

i want something cheap and affordable....

Why do you need a company limited in Thailand?

 

Cheap and affordable is very relative, just as a the length of a rubber band.

 

Typically, you'll need a registered and paid shareholder capital of 2 million baht, of which 51 percent needs to be hold by one or more Thai shareholders, minimum is two shareholders in total. The Thai shareholder(s) must proof to own the funds used to buy shares.

 

You cannot perform any work, apart from CEO on board member level, without a work permit. For a company to obtain one work permit for a foreigner, the company normally need four Thai employees.

 

Company tax is from 20 percent to 30 percent, depending of the profit.

 

As a retiree you can personally invest in Thai stocks, for example with a SET (Stock Exchange of Thailand) trading account, which many banks offer. Withheld dividend tax er 10 percent, and you don't need to do anything else, if you accept that tax. Capital gain on SET-stocks is not taxable.

 

Foreign stocks you can invest in and trade from offshore bank. You will not be taxed in Thailand of any gain, before you transfer fund into Thailand. Transferring money from abroad into Thailand is income taxable, if it's not savings documented from before 2024. You need to check Double Taxation Agreement with your home country or US, if you bring gains from US-stocks into Thailand. You will have a personal deduction of 60,000 baht and the first 150,000 baht is not taxed. The tax rate starts at five percent and rise in steps up to 35 percent of incomer over five million baht. You can use the search function and find threads with details about Thai income tax.

 

For remote work (probably not including Thai clients) there are special visas available, including the new 5-year visa from 1st June. You are officially not a retiree, if you work.

[parafareno]

2 hours ago, khunPer said:

Why do you need a company limited in Thailand?

 

Cheap and affordable is very relative, just as a the length of a rubber band.

 

Typically, you'll need a registered and paid shareholder capital of 2 million baht, of which 51 percent needs to be hold by one or more Thai shareholders, minimum is two shareholders in total. The Thai shareholder(s) must proof to own the funds used to buy shares.

 

You cannot perform any work, apart from CEO on board member level, without a work permit. For a company to obtain one work permit for a foreigner, the company normally need four Thai employees.

 

Company tax is from 20 percent to 30 percent, depending of the profit.

 

As a retiree you can personally invest in Thai stocks, for example with a SET (Stock Exchange of Thailand) trading account, which many banks offer. Withheld dividend tax er 10 percent, and you don't need to do anything else, if you accept that tax. Capital gain on SET-stocks is not taxable.

 

Foreign stocks you can invest in and trade from offshore bank. You will not be taxed in Thailand of any gain, before you transfer fund into Thailand. Transferring money from abroad into Thailand is income taxable, if it's not savings documented from before 2024. You need to check Double Taxation Agreement with your home country or US, if you bring gains from US-stocks into Thailand. You will have a personal deduction of 60,000 baht and the first 150,000 baht is not taxed. The tax rate starts at five percent and rise in steps up to 35 percent of incomer over five million baht. You can use the search function and find threads with details about Thai income tax.

 

For remote work (probably not including Thai clients) there are special visas available, including the new 5-year visa from 1st June. You are officially not a retiree, if you work.

so filipino bank is better to get payments there...and there is no tax if I am resident and it is also an offshore tax heaven?

[AjarnMartin]

5 hours ago, khunPer said:

Why do you need a company limited in Thailand?

 

Cheap and affordable is very relative, just as a the length of a rubber band.

 

Typically, you'll need a registered and paid shareholder capital of 2 million baht, of which 51 percent needs to be hold by one or more Thai shareholders, minimum is two shareholders in total. The Thai shareholder(s) must proof to own the funds used to buy shares.

 

You cannot perform any work, apart from CEO on board member level, without a work permit. For a company to obtain one work permit for a foreigner, the company normally need four Thai employees.

 

Company tax is from 20 percent to 30 percent, depending of the profit.

 

As a retiree you can personally invest in Thai stocks, for example with a SET (Stock Exchange of Thailand) trading account, which many banks offer. Withheld dividend tax er 10 percent, and you don't need to do anything else, if you accept that tax. Capital gain on SET-stocks is not taxable.

 

Foreign stocks you can invest in and trade from offshore bank. You will not be taxed in Thailand of any gain, before you transfer fund into Thailand. Transferring money from abroad into Thailand is income taxable, if it's not savings documented from before 2024. You need to check Double Taxation Agreement with your home country or US, if you bring gains from US-stocks into Thailand. You will have a personal deduction of 60,000 baht and the first 150,000 baht is not taxed. The tax rate starts at five percent and rise in steps up to 35 percent of incomer over five million baht. You can use the search function and find threads with details about Thai income tax.

 

For remote work (probably not including Thai clients) there are special visas available, including the new 5-year visa from 1st June. You are officially not a retiree, if you work.

KhunPer, a comprehensive piece of knowledge to OP parafareno which should hopefully dissuade him from even considering it. Well done! 

[parafareno]

10 hours ago, khunPer said:

Why do you need a company limited in Thailand?

 

Cheap and affordable is very relative, just as a the length of a rubber band.

 

Typically, you'll need a registered and paid shareholder capital of 2 million baht, of which 51 percent needs to be hold by one or more Thai shareholders, minimum is two shareholders in total. The Thai shareholder(s) must proof to own the funds used to buy shares.

 

You cannot perform any work, apart from CEO on board member level, without a work permit. For a company to obtain one work permit for a foreigner, the company normally need four Thai employees.

 

Company tax is from 20 percent to 30 percent, depending of the profit.

 

As a retiree you can personally invest in Thai stocks, for example with a SET (Stock Exchange of Thailand) trading account, which many banks offer. Withheld dividend tax er 10 percent, and you don't need to do anything else, if you accept that tax. Capital gain on SET-stocks is not taxable.

 

Foreign stocks you can invest in and trade from offshore bank. You will not be taxed in Thailand of any gain, before you transfer fund into Thailand. Transferring money from abroad into Thailand is income taxable, if it's not savings documented from before 2024. You need to check Double Taxation Agreement with your home country or US, if you bring gains from US-stocks into Thailand. You will have a personal deduction of 60,000 baht and the first 150,000 baht is not taxed. The tax rate starts at five percent and rise in steps up to 35 percent of incomer over five million baht. You can use the search function and find threads with details about Thai income tax.

 

For remote work (probably not including Thai clients) there are special visas available, including the new 5-year visa from 1st June. You are officially not a retiree, if you work.

so people who buy house through company have to have 2 million baht money just to open company

[NanLaew]

4 hours ago, parafareno said:

so people who buy house through company have to have 2 million baht money just to open company

 

Not quite. They just need to have some lawyer sign something that says there's 2 million involved.

 

All very smoke and mirrors, always has been but may not be as such in the future.

[parafareno]

4 hours ago, NanLaew said:

 

Not quite. They just need to have some lawyer sign something that says there's 2 million involved.

 

All very smoke and mirrors, always has been but may not be as such in the future.

they said that years ago that they will crack on falangs having real estate via company....and nothing happened.....same story 10 years ago.....

[KhunHeineken]

10 hours ago, parafareno said:

so people who buy house through company have to have 2 million baht money just to open company

This is illegal.  Yes, people do it, but it's illegal to set up a Thai company solely for the purpose of purchasing a property. 

[parafareno]

1 minute ago, KhunHeineken said:

This is illegal.  Yes, people do it, but it's illegal to set up a Thai company solely for the purpose of purchasing a property. 

so how do you think all those falang live in Pattaya dark side and other places?  through company

[KhunHeineken]

OP, what are you trying to achieve? 

 

Do you want to be a digital nomad, living in Thailand, getting paid into a Thai bank account? 

 

Do you want to buy a property in a Thai company name? 

 

How much remote / online work will you be doing per year, in USD value? 

[KhunHeineken]

6 minutes ago, parafareno said:

so how do you think all those falang live in Pattaya dark side and other places?  through company

I've never subscribed to the theory that if everyone else is doing it, it must be fine. 

 

Are you talking about houses or condo's?

 

Many take short cuts and just put it in the Thai wife's name.  Not a smart move. 

 

Once again, what are you trying to achieve?  More information is needed. 

 

Have you considered the cost of the house, left in a bank earning 5% interest, the interest earned per month is more than the cost to rent the exact same house, with no other expenses, taxes, maintenance, fees etc, and the freedom to move if and when you want, or need to? 

[parafareno]

5 minutes ago, KhunHeineken said:

I've never subscribed to the theory that if everyone else is doing it, it must be fine. 

 

Are you talking about houses or condo's?

 

Many take short cuts and just put it in the Thai wife's name.  Not a smart move. 

 

Once again, what are you trying to achieve?  More information is needed. 

 

Have you considered the cost of the house, left in a bank earning 5% interest, the interest earned per month is more than the cost to rent the exact same house, with no other expenses, taxes, maintenance, fees etc, and the freedom to move if and when you want, or need to? 

which bank is that?  I have my money in SCB and I am not getting any 5 % interest

[parafareno]

10 minutes ago, KhunHeineken said:

OP, what are you trying to achieve? 

 

Do you want to be a digital nomad, living in Thailand, getting paid into a Thai bank account? 

 

Do you want to buy a property in a Thai company name? 

 

How much remote / online work will you be doing per year, in USD value? 

i am kind of on a retirement route....occasional work mostly....

no not buying a house for now

[KhunHeineken]

6 minutes ago, parafareno said:

which bank is that?  I have my money in SCB and I am not getting any 5 % interest

I am Australian. 

 

Here's just one bank in Australia offering 5%.

 

https://www.rabobank.com.au/term-deposits

 

Forget Thai banks for earning interest.  Forget Thailand for investing.  Have a look at banks in your home country. 

 

If you need to get money out of your home country, I suggest HSBC Singapore.  Stable country with a rock solid financial system.  Currently paying 3.2%.

 

https://www.hsbc.com.sg/accounts/products/time-deposit/

[KhunHeineken]

11 minutes ago, parafareno said:

i am kind of on a retirement route....occasional work mostly....

no not buying a house for now

Well, get a retirement visa, and rent a condo.  Do a little trading, or whatever it is you do, and get paid in your home country, remaining under any tax free threshold.  Move the money into your Thai bank account for living expenses. 

 

Technically, you are working on a retirement visa, but the chances of getting caught are little to zero. 

 

Put the idea that "rent is dead money" out of your head for Thailand.

[scubascuba3]

1 hour ago, parafareno said:

so how do you think all those falang live in Pattaya dark side and other places?  through company

Yes but having thai proxy shareholders is illegal, their day will come.  Recall the recent story of the french woman who left 100m to her maid? that company is being investigated 

[khunPer]

20 hours ago, parafareno said:

so filipino bank is better to get payments there...and there is no tax if I am resident and it is also an offshore tax heaven?

No difference if you are tax-resident in Thailand – i.e., stay more than 180 days in a calendar year – you'll be taxed of all money you transfer into Thailand after the new rules per January 1st this year.

[khunPer]

12 hours ago, parafareno said:

so people who buy house through company have to have 2 million baht money just to open company

Normally yes, for the land under the house – a foreigner can own a house, but not the land under it – but mind you that nominee shareholders are not allowed, so you only own 49 percent of your company, which is modest 980,000 baht, some Thai(s) have to come up with 1.02 million baht in cash...😉

[parafareno]

26 minutes ago, khunPer said:

No difference if you are tax-resident in Thailand – i.e., stay more than 180 days in a calendar year – you'll be taxed of all money you transfer into Thailand after the new rules per January 1st this year.

what about if i transfer money from Europe to my thai bank account for condo purchase. lets say 2 million or 2.5 million? will that money get taxed too?

[KhunHeineken]

20 hours ago, parafareno said:

what about if i transfer money from Europe to my thai bank account for condo purchase. lets say 2 million or 2.5 million? will that money get taxed too?

Just how the tax policy will be implemented is unknown at this stage.  There appears to be a lot of clauses in the legislation that are unworkable.  There are a couple of long threads running on it. 

 

Wait until early next year to see what happens.  There may even be some cheaper condo's on the market due to people selling because they have to / want to become non residents of Thailand for tax purposes. 

[thaibeachlovers]

No.

[OneMoreFarang]

I think the main reason for farangs to establish a company in Thailand is to get a work permit and business visa. And to be able to write invoices to Thai businesses - if you want to sell something, including services, to Thais.

If you don't need a work permit and visa and if you don't do business with Thai companies, then I don't see a good reason to open a Thai company.

 

Buying property might be another reason. I am not familiar with that one.

[OneMoreFarang]

It is easy, or at least was easy, to setup a company in HK. 

[khunPer]

On 5/30/2024 at 10:46 AM, parafareno said:

what about if i transfer money from Europe to my thai bank account for condo purchase. lets say 2 million or 2.5 million? will that money get taxed too?

At the moment there is a lot we don't know about details for the new income taxation of foreign funds, transferred into Thailand. In principle, so far, yes, all foreign income is income taxable if not covered by a double taxation agreement. However, savings from before 2024 – i.e., until 31st December 2023 – are free from income tax, but you need to prove that the money is savings. Details about how, has to my knowledge not yet been published.