English Language School Business

[Phantom200]

I'm seeking some advice from anyone who has experience in opening and/or running a language school.

I am an American with a University Degree. I've been teaching for almost three years in Thailand. My most recent job was with AUA. I am business minded and feel that if I could get some accurate information, I could get a buisness plan together and make something work.

I would like to open a small (2 classroom) school at street level and run it with my fiance. My Thai fiance has a BA degree in English. I'm mostly concerned with overhead. Here are some questions:

1) I believe the MOE requires a corporate structure and a corporation will pay 30% tax on the net profits right? Seems a little steep to me.

2) Would I also have to pay personal income tax if I am on the board of directors(BOD)?

3) Would I have to pay VAT also? If so, what is the rate? According to one BOI website, I saw that educational services were exempt from paying VAT.

4) Would we need to hire four additional Thai staff in order for myself to get a WP? Could the other Thai members on the BOD suffice for this.

Any other advice on business structure, taxes, overhead, start-up capital, and pit-falls would be helpful.

Phantom200

[blizzard]

they open a new section for stuff like this. please use it............lol.

sounds like u need to work in a school as operator not teecher to get knowledge.

i seem to know as mut as you which is nuttin.....lol

Edited October 5, 2007 by blizzard

[KhaoNiaw]

I haven't done this myself but a friend opened a school a few years back. In the education sector, I think you need a Thai/Thais on board who hold at least a masters degree. Also you'll need Min. of Ed. approval for your syllabus, even as a language school.

Things might be different now, of course, but I'm pretty sure you'll find other threads on this topic here at TV.

[PeaceBlondie]

I do not know first-hand, either, but I'd heard the same info or rumours that KhaoNiaw mentions in post #3. A Thai educator with a master's degree, special permit from the MoE, etc. No walk in the park, the paperwork often takes more than a year, and if you start horning in on an established, licensed competitor's clientele, they'll report you to the authorities.

[jazzbo]

'Stumbled upon this while checking up on some unrelated info on one of this group's clients... And a pretty impressive list of clients it is.

Maybe this is a good way for you and your fiance to get started with no overhead and other associated problems.

http://www.taci.net/

[Sing_Sling]

Any update on this? I know that OPEC (!!!) is responsible for the details, but they won't answer their phone.

[Phantom200]

Any update on this? I know that OPEC (!!!) is responsible for the details, but they won't answer their phone.

I would also like to get a copy of the regs if anyone has them.

As for the taxes, I've asked some friends and they told me that a school will not have to pay the corporate tax. This is quite a relief.

I know a Thai couple that opened a legitimate English language school for kids. They said that they paid someone 20K baht to expedite the whole MOE proceedure.

Any other advice would be appreciated in setting up a school.

[sonicdragon]

Shouldn't this thread be moved to the SME Business forum ?