Setting Up A Thai Limited Business & Work Permits

[Dawn]

My husband and I are planning to move to Lanta within the next 3-4 years and have a couple of questions with regards to setting up a limited company in Thailand and work permits.

We have Thai friends on Lanta and would like to invest a small amount of money in their business which is already up and running. We understand that in order to do this we will have to set up a Thai limited company and apply for work permits as we will be making (a small amount of) money from this investment.

We will be seeking advice from a lawyer as to what type of company to set up in order to be able to carry out this type of business but we're still in the dark as to how we go about applying for work permits once this has happened.

Will we be automatically be granted work permits if we have our own limited company registered in Thailand? Do we have to have a certain amount of registered company capital in order to get a work permit each?

We will be bringing a large sum of money into Thailand but we would like to use this to build our house (on land we will be leasing from 2005), buy a vehicle and also buy a boat. We will only be investing a small amount of this money in our Thai friends business.

If we do have to register a large amount of company capital in order to obtain our work permits can we take this capital back out of our business once we have the work permits so we can use it to build our house (buy a vehicle and a boat)?

Finally, can we set up a Thai limited company while we are still in the UK? I ask this as we know it is easier to obtain a non-immigrant B visa while we are still in the UK - or is it an easy process obtaining the B visa in Thailand once we have set up a Thai limited company?

Many, many thanks for your time.

Dawn

[Sarawudt]

We have Thai friends on Lanta and would like to invest a small amount of money in their business which is already up and running. We understand that in order to do this we will have to set up a Thai limited company and apply for work permits as we will be making (a small amount of) money from this investment.

The money you make will be based on registered results, income tax payments for instance. It's very common in Thailand that income tax payments do not match real results as no person, regardles of nationality, likes to pay taxes. You should be very careful with tourism related joint ventures. Why would the owner supply real occupancy rates to you when he can keep most of the money in his own pockets? You won't find out anyway.

There are several people her like www.sunbeltasia.com who can help you with your questions.

[Sunbelt Asia]

Will we be automatically be granted work permits if we have our own limited company registered in Thailand?

No but as a MD you have a high chance of getting one.

Do we have to have a certain amount of registered company capital in order to get a work permit each?

2 million Baht for each Director that is seeking employment. No requirement for an employee.

One Year Visa requires the company has minimum of 2 million Baht registered capital with 1 million being working capital.

One Year multi entry Visa has no such requirement.

If we do have to register a large amount of company capital in order to obtain our work permits can we take this capital back out of our business once we have the work permits so we can use it to build our house (buy a vehicle and a boat)?

You can take out funds as a director loan. However their is a difference between registered capital and paid up capital. On 2 million Baht registered capital the requirement is 25% being paid with 90 days of the company being formed.

Finally, can we set up a Thai limited company while we are still in the UK?

Yes

www.sunbeltasia.com

[orientalbreeze]

Hi guys,

I am moving to Phuket and want to set up an internet biz. I do online marketing and I sell an ebook..I am 29 years old and have an MBA from the U.S. I am also a Swedish citizen and move on Aug 12th so I need to set up a an internet business right away.

1. How much does it cost to set up an internet business in Thailand? Is it still 2 Million Bahts to get a work permit? If so, can I get around this legally and if so, how can I get around that fee legally?

2. What are the other costs involved?

3. How long will it take to get started?

4. Where do I register for all this and how do I proceed with all of the above?

5. Also, is broadband available in Phuket (which company offers good rates and reliale service) and how much does that cost per month (eg is there a flat fee or is there a charge per minute)?

6. If I cannot register a biz legally in Thailand, can I set it up in my home country and then run it from Thailand? which is the best option?

I am leaving in two weeks so if anyone could shed some light I would really appreciate it cause I am a total newbie to this.....

Thanks guys,

Johan

[Sunbelt Asia]

. How much does it cost to set up an internet business in Thailand

You mean legal fee? Our basic company legal on a limited co is 3,900 Baht. Tax Id and Corp Id is 3,000, Work permit is 7,800 and Visa is 7,200 Baht. With government fees included around 35,000 Baht.

As you are looking at Phuket, add 12,000- 15,000 Baht for traveling expense

Is it still 2 Million Bahts to get a work permit?

If you're a Director which is registered capital ( on paper). Does not have to be paid up at this time, just 25% of the shares after 90 days In other words even as a director, you just need 500,000 Baht.

If so, can I get around this legally and if so, how can I get around that fee legally?

Be a employee that is not a director.

. What are the other costs involved?

Monthly withholding tax and Vat filing. Our fee is 2,500 Baht per month.

. How long will it take to get started?

Around 7 weeks to complete the company formation, work permit, tax id and corp id.

4. Where do I register for all this and how do I proceed with all of the above?

You're welcome to use our firm or other firms as well. Check out Indo-Siam he may have an office in Phuket so he wouldn't have the traveling expense. We have a business brokerage office near the Dusit Laguna but no legal in Phuket hence we need to fly a license lawyer down. We don't charge for the travel time but we do for the airline tickets.

. Also, is broadband available in Phuket (which company offers good rates and reliale service) and how much does that cost per month (eg is there a flat fee or is there a charge per minute)?

Its not very good I understand in Phuket but TRUE is the best.

If I cannot register a biz legally in Thailand, can I set it up in my home country and then run it from Thailand? which is the best option?

If you're looking to get a work permit and visa. Then setting up in Thailand is the best.

www.sunbeltasia.com

[cutethaigirl]

QUOTE 

If I cannot register a biz legally in Thailand, can I set it up in my home country and then run it from Thailand? which is the best option?

If you're looking to get a work permit and visa. Then setting up in Thailand is the best.

If not then definitely not the best.

Keep the whole lot 'offshore':-)

[orientalbreeze]

Thx a bunch...

1. So you are saying that 35000 Baht is the total cost for everything (Visa, work permit, tax id, plus government fees) and then 2500 baht a month for taxes.

2. Is the monthly fee a flat rate every month (ie not pregressive as revenues go up)? Is this for a limited company or a corporation..Can you let me know the total cost of doing limited company please (incl. visa, work permit, tax id and government fees)?

3. While mentioning this, would it be better to set up a limited company?

I am a one man show and don't want to hire anyone yet...Is this possible or am I forced to hire someone?

4. So if I am an employee and not a director you say I dont have to pay for those two million Bahts correct. So what does that imply? Who owns the company then and who is the director? Please elaborate and what does that mean to me? Do I lose all control and can this director do whatever he wants (eg take out funds from my bank account etc)?....

5. You say it takes 7 weeks to complete everything. Can I start working before this (ie when I arrive on the 12th of August or do I need to wait 7 weeks or does this matter)

6. I don't mind using your service since you have been very helpful but who is Indo-Siam and where can I get a hold of him/her?

7. Lastly, please take no offense, when I pay you money to set up the business is this legal and how do I know this? What I mean is, usually you go to the government and file the papers and then everything is set up. But here I go through a company that does it for me. (ie. I dont want to do anything illegal that can cause me to get into troubles in Thailand). So for instance, if any Thai authority asks me for visa and work permit etc can I show proof and will be fine showing those papers and not risking going to jail or paying fines? I just received a 3 months tourist visa and if I use your service then will I get a long term VISA (1 year or so) for the business?

Sorry for all my questions and lack of knowledge in this...

8. Do you have office in Bangkok so I can see you there since I will be staying there first?

9. You said TRUE company is the best broadband company. Do you know the contact info for this company (ie website)...So TRUE is ok..What does this exactly mean.? Is it dog slow many times or is it up and running and fast most of the times?...It's very important that I have a great connection at least 80-90% of the times...would this be the case?

You have been very helpful and I am very thankful for all help. I hope we can do some business together since I really need to get this started very soon...

Thx

Johan

[orientalbreeze]

To Cutethaigirl:

What do you mean by

Keep the whole lot 'offshore':-)

thx a lot

Johan

[Sunbelt Asia]

"1. So you are saying that 35000 Baht is the total cost for everything (Visa, work permit, tax id, plus government fees)"

Please e-mail for detailed breakdown.

Remember traveling expense as stated before.

" and then 2500 baht a month for taxes. "

Thats filing in BKK. We don't have this service in Phuket. However I'm sure you'll be able to find an accountant there.

"2. Is the monthly fee a flat rate every month (ie not pregressive as revenues go up)? "

Our fee is for BKK companies. Most services have a flat rate till you have over 30 invoices per month.

"Is this for a limited company or a corporation..Can you let me know the total cost of doing limited company please (incl. visa, work permit, tax id and government fees)?"

35,853 Baht

"3. While mentioning this, would it be better to set up a limited company?

I am a one man show and don't want to hire anyone yet...Is this possible or am I forced to hire someone?"

Limited company is the best if you're an not an American but then forget about having a one year extension of stay visa if you don't need 4 Thais working. You'll be needing a one year multi entry visa.

If you're an American, you can set up as a Sole Proprietor and not need 2 million registered capital.

"4. So if I am an employee and not a director you say I dont have to pay for those two million Bahts correct. "

Correct.

However as a director, it only has to be registered capital of 2 million Baht NOT paid up 100%. If you're talking 2 million registered capital, by Thai law it would be 500,000 Baht paid up.

"So what does that imply? Who owns the company then and who is the director?"

Depending on what type of business you have you may have 99.94% of the shares or by Thai law you may own only 49% of the company if its restricted unless you apply for a Alien Business License or BOI.

As for being the director... it makes most sense if you're the director to bind the company.

However you asked" Do I need 2 million Baht to get a work permit? If so, anyway around it? "

I responded yes, if you're not a director. If that does not fit your case. Then you must be a director( unless you're a Sole Proprietor) and you must have registered capital of 2 million Baht.

Another way, apply for BOI under a one million Baht registered capital. Once approved you could get a work permit as a director. The problem is no plans to employ Thais...this certainly would NOT help your application. The positive is they are looking to bring a Internet hub to Phuket and that's your field. The other negative your're looking at legal and government fees for BOI of 200,000 Baht.

One other option, only if you're an American, apply under Amity as a Sole Proprietor. Then you would apply for the work permit. Your registered capital in this case would be one million baht. Note: The Amity Treaty ends Dec 31st but is expected to be renewed under the FTA. Regardless if you had applied before Dec 31st then anyone approved before that date, is expected to be " grandfather"

"Please elaborate and what does that mean to me? Do I lose all control and can this director do whatever he wants (eg take out funds from my bank account etc)?...."

If you're not the director, then you cannot bind the company. In your case, as you're a one man show, this is not the best option, not to be the director

"5. You say it takes 7 weeks to complete everything. Can I start working before this (ie when I arrive on the 12th of August or do I need to wait 7 weeks or does this matter)"

Yes but you need a registered commercial address in Thailand.

"6. I don't mind using your service since you have been very helpful but who is Indo-Siam and where can I get a hold of him/her?"

You can reach Steve at http://www.thaistartup.com Tel: (66)02-260-3914 Fax: (66)02-260-3915

"7. Lastly, please take no offense, when I pay you money to set up the business is this legal and how do I know this? What I mean is, usually you go to the government and file the papers and then everything is set up. But here I go through a company that does it for me. (ie. I dont want to do anything illegal that can cause me to get into troubles in Thailand). So for instance, if any Thai authority asks me for visa and work permit etc can I show proof and will be fine showing those papers and not risking going to jail or paying fines? I just received a 3 months tourist visa and if I use your service then will I get a long term VISA (1 year or so) for the business?"

As you're not employing 4 Thais, you'll not be able to get long term visa extension. The best you can hope for is getting a one year multi entry visa where you do a visa run every 90 days. You will be able to get a work permit without employing 4 Thais.

As for filing the paperwork, our licensed lawyers take care of it. But it is you, that will be providing the information and signing the documentation. We have translated doc's in English on what you'll be signing but the government is who will issue the registration and work permit.

What country do you live in? It's best to change that tourist visa to a non immigrant visa now at your Thai Consulate before you arrive. As you can't apply under a tourist visa for a work permit. also it's next to impossible to get a one year multi entry visa without a work permit in Se Asia countries near Thailand.

"Sorry for all my questions and lack of knowledge in this..."

No problem. Perhaps your questions will help other people in being legal.

"8. Do you have office in Bangkok so I can see you there since I will be staying there first?"

1 Ratchadaphisek Road

Fortune Town

CP Tower Floor 26

Phram 9 ( Rama 9) Subway Station Exit 2

02-642-0213

[email protected]

"9. You said TRUE company is the best broadband company. Do you know the contact info for this company (ie website)...So TRUE is ok..What does this exactly mean.? Is it dog slow many times or is it up and running and fast most of the times?...It's very important that I have a great connection at least 80-90% of the times...would this be the case?"

Sorry not my field. Perhaps someone else can shed light on this.

"You have been very helpful and I am very thankful for all help. I hope we can do some business together since I really need to get this started very soon..."

Happy to help. A number of good companies to assist you in Thailand. If you choose ours, we'll be there to help.

www.sunbeltasia.com

[Willi_S]

sorry, cross-post (i postet this questions in the threat: "Business Visa, Setting up new business consultant")

=======================

some more questions to this theme:

the 4 thai-worker also can these be my woman or thai-life-partner, reconciles neighbors as a scrubwoman and do gardening? what is the minimum salary to pay them?

can the employers also be shareholders of the company?

for the 1 mio B working-capital: can i invest this capital in my company-equipment after registration the co-ltd, or i can before? investment same as buying a car, computers and others office-equipment and renovating the office-rooms or building some new?

@sunbelt: did you support also company-starting´s in korat? ... and germans?

VISA: is this a problem, when i apply for a non-immi-B-visum, but i leave the country all 3-4 weeks, because i have to manage more business outside TH?

BANK: what bank is the best for "online-banking", where i can watch and support the account statements from outside TH?

regards

WILLI

[Sunbelt Asia]

Hi Willi. I answered the other questions in another post.

sunbelt: did you support also company-starting´s in korat? ... and germans?

Yes

VISA: is this a problem, when i apply for a non-immi-B-visum, but i leave the country all 3-4 weeks, because i have to manage more business outside TH?

No, just get a rentry permit before you go.

BANK: what bank is the best for "online-banking", where i can watch and support the account statements from outside TH?

Nobody seems to be raving about "On-line banking' in Thailand. I heard Bangkok Bank is the best of the lot. Any other viewpoints on this?

[ka12345]

Nobody seems to be raving about "On-line banking' in Thailand. I heard Bangkok Bank is the best of the lot. Any other viewpoints on this?

Bank of Asia. They are (or were) farang friendly, have a good online bank and are generally easier to deal with than BKKBTHBK (IMHO).

[mr-chris]

If I come over to Thailand on a tourist visa initially to begin the setup, will I be able to get a nonimgb visa from within Thailand or will I have to re-enter Malaysia to get it?

Will I be able to get the ball rolling this way?

Have you any idea how long it will take to issue a nonimgb visa?

[~G~]

If I come over to Thailand on a tourist visa initially to begin the setup, will I be able to get a nonimgb visa from within Thailand or will I have to re-enter Malaysia to get it?

You will have to exit and enter Thailand again.

Have you any idea how long it will take to issue a nonimgb visa?

Depends on the Embassy/Consulate. In some, it will take 5 minutes, in others, it can take a day or two.

[Sunbelt Asia]

If I come over to Thailand on a tourist visa initially to begin the setup, will I be able to get a nonimgb visa from within Thailand or will I have to re-enter Malaysia to get it?

You must obtain it outside Thailand unless you have a Thai Director and have a 60 day tourist visa. You must also have a copy of your diploma for the change of visa type. Easier to get a non immigrant visa in your home country. We can sponsor you if you are looking to invest in Thailand.

Have you any idea how long it will take to issue a nonimgb visa?

Can be 15 minutes to 2-3 weeks(Bali or Brunai). Just depends on the Embassy.

www.lawyer.th.com

[PattayaXpat]

"1. So you are saying that 35000 Baht is the total cost for everything (Visa, work permit, tax id, plus government fees)"

Please e-mail for detailed breakdown.

Remember traveling expense as stated before.

" and then 2500 baht a month for taxes. "

Thats filing in BKK. We don't have this service in Phuket. However I'm sure you'll be able to find an accountant there.

"2. Is the monthly fee a flat rate every month (ie not pregressive as revenues go up)? "

Our fee is for BKK companies. Most services have a flat rate till you have over 30 invoices per month.

"Is this for a limited company or a corporation..Can you let me know the total cost of doing limited company please (incl. visa, work permit, tax id and government fees)?"

35,853 Baht

"3. While mentioning this, would it be better to set up a limited company?

I am a one man show and don't want to hire anyone yet...Is this possible or am I forced to hire someone?"

Limited company is the best if you're an not an American but then forget about having a one year extension of stay visa if you don't need 4 Thais working. You'll be needing a one year multi entry visa.

If you're an American, you can set up as a Sole Proprietor and not need 2 million registered capital.

"4. So if I am an employee and not a director you say I dont have to pay for those two million Bahts correct. "

Correct.

However as a director, it only has to be registered capital of 2 million Baht NOT paid up 100%. If you're talking 2 million registered capital, by Thai law it would be 500,000 Baht paid up.

"So what does that imply? Who owns the company then and who is the director?"

Depending on what type of business you have you may have 99.94% of the shares or by Thai law you may own only 49% of the company if its restricted unless you apply for a Alien Business License or BOI.

As for being the director... it makes most sense if you're the director to bind the company.

However you asked" Do I need 2 million Baht to get a work permit? If so, anyway around it? "

I responded yes, if you're not a director. If that does not fit your case. Then you must be a director( unless you're a Sole Proprietor) and you must have registered capital of 2 million Baht.

Another way, apply for BOI under a one million Baht registered capital. Once approved you could get a work permit as a director. The problem is no plans to employ Thais...this certainly would NOT help your application. The positive is they are looking to bring a Internet hub to Phuket and that's your field. The other negative your're looking at legal and government fees for BOI of 200,000 Baht.

One other option, only if you're an American, apply under Amity as a Sole Proprietor. Then you would apply for the work permit. Your registered capital in this case would be one million baht. Note: The Amity Treaty ends Dec 31st but is expected to be renewed under the FTA. Regardless if you had applied before Dec 31st then anyone approved before that date, is expected to be " grandfather"

"Please elaborate and what does that mean to me? Do I lose all control and can this director do whatever he wants (eg take out funds from my bank account etc)?...."

If you're not the director, then you cannot bind the company. In your case, as you're a one man show, this is not the best option, not to be the director

"5. You say it takes 7 weeks to complete everything. Can I start working before this (ie when I arrive on the 12th of August or do I need to wait 7 weeks or does this matter)"

Yes but you need a registered commercial address in Thailand.

"6. I don't mind using your service since you have been very helpful but who is Indo-Siam and where can I get a hold of him/her?"

You can reach Steve at http://www.thaistartup.com Tel: (66)02-260-3914 Fax: (66)02-260-3915

"7. Lastly, please take no offense, when I pay you money to set up the business is this legal and how do I know this? What I mean is, usually you go to the government and file the papers and then everything is set up. But here I go through a company that does it for me. (ie. I dont want to do anything illegal that can cause me to get into troubles in Thailand). So for instance, if any Thai authority asks me for visa and work permit etc can I show proof and will be fine showing those papers and not risking going to jail or paying fines? I just received a 3 months tourist visa and if I use your service then will I get a long term VISA (1 year or so) for the business?"

As you're not employing 4 Thais, you'll not be able to get long term visa extension. The best you can hope for is getting a one year multi entry visa where you do a visa run every 90 days. You will be able to get a work permit without employing 4 Thais.

As for filing the paperwork, our licensed lawyers take care of it. But it is you, that will be providing the information and signing the documentation. We have translated doc's in English on what you'll be signing but the government is who will issue the registration and work permit.

What country do you live in? It's best to change that tourist visa to a non immigrant visa now at your Thai Consulate before you arrive. As you can't apply under a tourist visa for a work permit. also it's next to impossible to get a one year multi entry visa without a work permit in Se Asia countries near Thailand.

"Sorry for all my questions and lack of knowledge in this..."

No problem. Perhaps your questions will help other people in being legal.

"8. Do you have office in Bangkok so I can see you there since I will be staying there first?"

1 Ratchadaphisek Road

Fortune Town

CP Tower Floor 26

Phram 9 ( Rama 9) Subway Station Exit 2

02-642-0213

[email protected]

"9. You said TRUE company is the best broadband company. Do you know the contact info for this company (ie website)...So TRUE is ok..What does this exactly mean.? Is it dog slow many times or is it up and running and fast most of the times?...It's very important that I have a great connection at least 80-90% of the times...would this be the case?"

Sorry not my field. Perhaps someone else can shed light on this.

"You have been very helpful and I am very thankful for all help. I hope we can do some business together since I really need to get this started very soon..."

Happy to help. A number of good companies to assist you in Thailand. If you choose ours, we'll be there to help.

www.sunbeltasia.com

I realize that this is an old thread, but are the rules concerning a sole proprietership still the same? I am an american and I'm not concerned about a work permit at this time.

Thanks

[Sunbelt Asia]

I realize that this is an old thread, but are the rules concerning a sole proprietership still the same? I am an american and I'm not concerned about a work permit at this time.

Thanks

They are still allowing sole proprietership under the Amity treaty. You are able to get a work permit, if you need one.

www.sunbeltasiagroup.com