Sole proprietorship in Thailand?

[JP-HB]

Getting prepared for our move from the UK to Thailand and so researching the best way to operate my business in Thailand. Any advice would be really appreciated.

I'm currently a UK operating Sole Trader that is UK VAT registered. When I move to Thailand I will continue to sell my products in the UK and would obviously remain VAT registered. As my UK income will be taxable in Thailand, I believe I must fill in a tax return each year.

 

I'm wondering if I should be thinking about registering a limited company or just continue on the sole trader/proprietorship basis. What would be the benefit of the ltd company in my position and what difficulties would I possibly have with either route?

 

Just for clarity my wife is Thai so I would be able to find the 51% ownership required and also I would not be selling in Thailand or anywhere else but the UK.

 

Thanks

[DrJack54]

Since all your business is UK and you are able to do that online, have you looked into DTV..

 

Here is a site. Not a gov site however has clear overview.

https://www.thaiembassy.com/thailand-visa/dtv-visa-thailand

[JP-HB]

9 hours ago, DrJack54 said:

Since all your business is UK and you are able to do that online, have you looked into DTV..

 

Here is a site. Not a gov site however has clear overview.

https://www.thaiembassy.com/thailand-visa/dtv-visa-thailand

Thank you for your reply. I'm aware of the DTV but have not really considered it much, however you are right, it could be a good choice. In the future my wife and I would like to open a small guesthouse (4 rooms max) I'm guessing at that point I would need to change to a visa that allows work permits but otherwise the DTV is probably ideal. From reading the article you linked it seems you have to leave the country every 180 days?

[DrJack54]

1 minute ago, JP-HB said:

From reading the article you linked it seems you have to leave the country every 180 days?

Recent thread discussing this.

Seems consensus is a short "holiday" out of Thailand is perhaps simpler option than extension at immigration. 

[CanadaSam]

If all your business is in the UK I don't understand why you want to open any type of company now in Thailand.

 

Continue with existing operation in the UK, and deal with taxes as your accountants in both countries advise.

 

When you open a guesthouse in Thailand, do it via a Thai company of which you own 49% and your wife also 49% and the 2% balance in the name of a trusted friend / lawyer.

[DrJack54]

22 minutes ago, CanadaSam said:

If all your business is in the UK I don't understand why you want to open any type of company now in Thailand.

Agree. I suggested DTV however given he is married to a Thai national he can just as easily obtain Non O marriage+ extensions.

Deal with the guesthouse in the future. 

 

 

[Mises]

Your UK income will be taxable in the UK

https://www.crunch.co.uk/knowledge/article/non-uk-residents-running-uk-businesses

It will not be double taxed in Thailand.

[malcolminthemiddle]

No equivalent of a sole trader in Thailand. Have to form a company. Been there, done that.

[JJ-Thailand]

How about an offshore company registered in Hong Kong and a DTV in Thailand?

[khunPer]

On 2/28/2025 at 10:50 PM, JP-HB said:

Getting prepared for our move from the UK to Thailand and so researching the best way to operate my business in Thailand. Any advice would be really appreciated.

I'm currently a UK operating Sole Trader that is UK VAT registered. When I move to Thailand I will continue to sell my products in the UK and would obviously remain VAT registered. As my UK income will be taxable in Thailand, I believe I must fill in a tax return each year.

 

I'm wondering if I should be thinking about registering a limited company or just continue on the sole trader/proprietorship basis. What would be the benefit of the ltd company in my position and what difficulties would I possibly have with either route?

 

Just for clarity my wife is Thai so I would be able to find the 51% ownership required and also I would not be selling in Thailand or anywhere else but the UK.

 

Thanks

I'm not from UK, but it's probably not so different from other European cpountries, and like the situation for other Danes and myself that are living in Thailand and still owner of a business in our home country. It has nothing to do with Thailand, apart from personal income and eventual taxation of that. There might be rules in UK, just like there is in my home country – and those I know in similar situation from neighboring European countries – if you have a personal owned bsusiness, about vat-registration and an address etc.

 

Most of us use a limited company registered in our home couintry. The company will pay tax in the country where it is registered. You shoukld check the DTA between Britain and Thailand concerning salary, fees and/or dividends paid to you, when you are tax-resident in Thailand. The DTAs are different from country to country, but in Denmark we don't pay Danish income tax of salary and fee, and can get tax reduction on dividends. Thai income tax is (much) lover than Danish taxation.

 

If you do no business in Thailand, you don't need a company here.

[Surasak]

On 3/4/2025 at 12:28 AM, khunPer said:

I'm not from UK, but it's probably not so different from other European cpountries, and like the situation for other Danes and myself that are living in Thailand and still owner of a business in our home country. It has nothing to do with Thailand, apart from personal income and eventual taxation of that. There might be rules in UK, just like there is in my home country – and those I know in similar situation from neighboring European countries – if you have a personal owned bsusiness, about vat-registration and an address etc.

 

Most of us use a limited company registered in our home couintry. The company will pay tax in the country where it is registered. You shoukld check the DTA between Britain and Thailand concerning salary, fees and/or dividends paid to you, when you are tax-resident in Thailand. The DTAs are different from country to country, but in Denmark we don't pay Danish income tax of salary and fee, and can get tax reduction on dividends. Thai income tax is (much) lover than Danish taxation.

 

If you do no business in Thailand, you don't need a company here.

Take a look at this UK THAI DTA.  https://assets.publishing.service.gov.uk/media/5a80bddc40f0b623026953eb/uk-thailand-dtc180281_-_in_force.pdf

[Dogmatix]

On 3/3/2025 at 12:39 PM, malcolminthemiddle said:

No equivalent of a sole trader in Thailand. Have to form a company. Been there, done that.

 

There is an exact equivalent of a sole trader in Thailand.  Not easy for a foreigner to do but the OP's wife could do it, if there were any advantage.  Thais can just do any business, as long as it doesn't require a license, in their own name.  Examples would be trading goods or operating or renting out a house or condo by the month or longer.  There are licensing requirements for a hotel or guest house but this can still be done by a sole trader.  You file a PND 90 tax return in your own name.  Americans can operate sole trader businesses or partnerships under the Treaty of Amity and Economic Relations which allows them to operate any business structure that Thais can use but they need to apply for an alien business license.  Non-Americans can theoretically get a WP as a sole trader because it is not specified in the law that the employer must be a limited company but Immigration and/or  your local Labour office may not be willing to support this.  Normally a limited company is the best choice, if you want a WP.  

 

Under the current Thai regime you can probably avoid filing for Thai tax on your UK business, apart from income earned from it that you remit to Thailand.  Technically, if you are doing the work from Thailand, the income you earn from it is Thai taxable and you need a WP to do it.  But in practical terms you wouldn't get a WP to run a sole trader business in the UK from Thailand.  So it is probably better not to file for tax for work done that you don't have a WP for, as you may be creating the evidence for prosecution for working without a WP. A DTV visa should get you round the WP requirement but you would technically have to file for Thai tax on your income but you can claim double tax treaty relief on the UK tax.  

 

I think another option is just to get a spouse visa and don't mention you are working, since you are just quietly doing that at home.  Then you are just liable for Thai tax on income remitted to Thailand, also subject to double tax relief.