Advice On Best Business Form To Use

[phormio]

I've learned quite a bit in these forums and feel lucky to have stumbled upon them.

Thanks for knowledge already shared.

Any Suggestions would be greatly appreciated.

I'm an American who is very likely going to emigrate to Thailand at the end of 2004 with my Thai wife and baby. I've got a college degree in engineering with work in IT and would like to work in education (English, Science, IT) , Software Development / Engineering, and/or real estate investment. I would like to be able to purchase land and a house to live in, as well as a car (preferably by borrowing money in country). I could afford to go the Non-Immigrant "O" support family route but suspect that there is a better way.

After poking around in these forums for several days, it looks like I could set up a sole proprietorship under Amity - but would I be able contract out my services as a teacher/programmer/IT consultant also? Would I be able Under Amity to buy land,a house, a car and get some tax advantages by offsetting these expenses with income from my income earning activities?

I apologize if these questions are naive , but I read in another post that an effective deadline for Amity is September 2004 in order to get it done before the end of the year, and haven't spent as much time as I would like getting up to speed on all the issues.

As an aside, with the impending FTA bring down the insane car tariffs in the LoS ?

Thanks

[Sunbelt Asia]

After poking around in these forums for several days, it looks like I could set up a sole proprietorship under Amity - but would I be able contract out my services as a teacher/programmer/IT consultant also? Would I be able Under Amity to buy land,a house, a car and get some tax advantages by offsetting these expenses with income from my income earning activities?

You cannot buy land under Amity. A car yes if it was used for the business.

You would have to get a Alien Business License under Amity for each of those objectives which you stated "teacher/programmer/IT consultant" and then a work permit.

www.sunbeltasia.com

[phormio]

According to my understanding from reading previous posts, Amity coverage occurs for those intending to carry out activities that are on the list of prohibited activities to foreigners. Under list 1, under prohibited activities, right at the bottom , is "land trading".

This doesn't give one the option of buying land ? Then what does "land trading" mean?

If one buys a car under corporate ownership, can one depreciate it and reduce taxes? Can you use it for personal and business reasons and not run into problems with the taxman ?

Can a US citizen own land under a BOI company?

What are the capital requirements under Amity Sole proprietership and limited corporations (registered and paid up) ? Can't one call oneself a consultant and provide a variety of services?

This is tongue-in-cheek, but seems like one of the only(if not THE only) ways for me to own land in Thailand (<= 1 Rai) is to find someone who is terminally ill, a trusted friend, and have them buy the land and leave it to me in their will.

Thats a lot of questions, any info would be greatly appreciated.

Thanks.

[Sunbelt Asia]

This doesn't give one the option of buying land ?

Some restrictions on American investment still exist. They include:

Owning land;

Engaging in the business of inland communication;

Engaging in inland transportation and communication industries;

Engaging in fiduciary functions;

Engaging in banking involving depository functions;

Engaging in domestic trade in indigenous agricultural products;

Exploiting land or other natural resources

If one buys a car under corporate ownership, can one depreciate it and reduce taxes? Can you use it for personal and business reasons and not run into problems with the taxman ?

I'll ask our accountants in the morning but my understanding is a corporate car can be depreciated. Of course it is to be expensed out on what usage is personal and for the business.

Can a US citizen own land under a BOI company?

Any nationality can. The BOI can give the right to to own land if the intended use of the land is for an activity promoted by the BOI. Before you buy, the BoI has to review the land and your construction plans. They must feel the land is suitable for the promoted activity. After the acqusition, the land may only be used for that activity and, in the event your corp is dissolved, the land must be sold within one year after that date.

What are the capital requirements under Amity Sole proprietership and limited corporations (registered and paid up) ?

To simply own it? No minimum registered capital for Amity companies is required.

To work in it... then it will require 2 million baht registered capital if you're the director. If you are simply an employee...no minimum.

Can't one call oneself a consultant and provide a variety of services?

Each service is an additional Alien Business License needed. Only have to go for Amity clearance once however.

www.sunbeltasia.com

[phormio]

Sunbelt, thanks for your quick responses. I have a few more questions:

You would have to get a Alien Business License under Amity for each of those objectives which you stated "teacher/programmer/IT consultant" and then a work permit.

would the Thai govt grant ABLs under Amity for those activities, since (i believe) they are not on the prohibited list ? If so, does it make sense to do things this way ? Isn't it triple the cost for three lAB licenses ? If I find three employers in Thailand, can I get 3 different work permits at the same time?

It seems that required capital under Amity is the same as under a Thai majority owned corp. So the primary advantage of Amity is that it permits US ownership doing prohibited(for non-US nationals) activities.

In your opinion , is there a good reason for me to go under Amity (sole proprietorship or limited company)?

Obviously I'm going to have to get some professional advice- as in the US, there's the law as written, the law as practiced, and the nooks and crannies where you weave and bob to get what you want without getting into deep do-do with the powers that be.

I'm just trying to get enough of an understanding to determine if its worth my while to pop over to Thailand, in Sept or Oct, to set things up under Amity or just wait till we move late 2004/early 2005(perhaps attempting to get a visa/work permit for teaching before going in country).

Also, it looks like the US-Thai FTA probably won't be completed before Amity expires.

Thanks.

Sunbelt, thanks for your quick responses. I have a few more questions:

You would have to get a Alien Business License under Amity for each of those objectives which you stated "teacher/programmer/IT consultant" and then a work permit.

would the Thai govt grant ABLs under Amity for those activities, since (i believe) they are not on the prohibited list ? If so, does it make sense to do things this way ? Isn't it triple the cost for three lAB licenses ? If I find three employers in Thailand, can I get 3 different work permits at the same time?

It seems that required capital under Amity is the same as under a Thai majority owned corp. So the primary advantage of Amity is that it permits US ownership doing prohibited(for non-US nationals) activities.

In your opinion , is there a good reason for me to go under Amity (sole proprietorship or limited company)?

Obviously I'm going to have to get some professional advice- as in the US, there's the law as written, the law as practiced, and the nooks and crannies where you weave and bob to get what you want without getting into deep do-do with the powers that be.

I'm just trying to get enough of an understanding to determine if its worth my while to pop over to Thailand, in Sept or Oct, to set things up under Amity or just wait till we move late 2004/early 2005(perhaps attempting to get a visa/work permit for teaching before going in country).

Also, it looks like the US-Thai FTA probably won't be completed before Amity expires.

Thanks.

[Mobaan]

Is Amity dead by the end of the year?

If still alive -would it work for a German passport holder as well??

[phormio]

Amity expires in December 2004. Its a treaty between the US and Thailand that has been around for 40 years. It covered US citizens so would not be useful for someone travelling on a German passport. I've read in these forums, some time back, that the provisions of Amity are supposed to be extended in the Thai-US FTA(Free Trade Agreement) which is currently under negotiation.

Supposedly, these provisions would be extended to other nationalities via the WTO or other trade regimes - but this needs further investigation.

[Sunbelt Asia]

would the Thai govt grant ABLs under Amity for those activities, since (i believe) they are not on the prohibited list ?

Yes We have had clients obtain them for this. They are restricted under "service"

If so, does it make sense to do things this way ?

We feel it does.

Isn't it triple the cost for three lAB licenses ?

With our firm not on legal fees.

If I find three employers in Thailand, can I get 3 different work permits at the same time?

Yes

It seems that required capital under Amity is the same as under a Thai majority owned corp.

Their is no required capital for Amity. However if you are seeking a work permit then Amity or non Amity, if you're the director seeking a work permit then 2 million baht applies

So the primary advantage of Amity is that it permits US ownership doing prohibited(for non-US nationals) activities.

correct

In your opinion , is there a good reason for me to go under Amity (sole proprietorship or limited company)?

We like limited companies for limited liability

Obviously I'm going to have to get some professional advice- as in the US, there's the law as written, the law as practiced, and the nooks and crannies where you weave and bob to get what you want without getting into deep do-do with the powers that be.

Amity is not a disadvantage in doing business in Thailand.

I'm just trying to get enough of an understanding to determine if its worth my while to pop over to Thailand, in Sept or Oct, to set things up under Amity or just wait till we move late 2004/early 2005(perhaps attempting to get a visa/work permit for teaching before going in country).

You can do the paperwork without even leaving the USA. A number of clients have done so with us.

Also, it looks like the US-Thai FTA probably won't be completed before Amity expires.

Correct

www.sunbeltasia.com

[phormio]

After discussing my background on the Teaching forum under the pinned qualifications topic, it seems like pretty good odds that i can get a teaching job in the 40,000+ Baht/month range.

In another post in the visa/work permit forum it was pointed out that by getting an Non-Immigrant "O" visa (in my case based on support of a Thai Spouse and child) and a Work Permit with job earning at least 40,000 baht per month , that I'd qualify to extend my visa yearly; this would not require transferring in from the outside 400,000 baht per year.

This last piece of informaiton has turned my ponderances into a no-brainer - I will not be starting up a company in the short term for immigration purposes; however, if I can find suitable business opportunities, I may start a LLC in the medium-to-long term.

Sunbelt,

Thanks very much for your help and for taking the time to respond to my questions.

[Sumitr Man]

QUOTE 

Also, it looks like the US-Thai FTA probably won't be completed before Amity expires.

Correct

Sunbelt

[sorry if you have posted this elsewhere]

Have you found out if those currently afforded protection under the Amity are going to be Grandfathered? I've heard some very conflicting stories on this - some saying "yes they will", others "no they won't".

I'd be interested to hear if you know the score.

Thanks

SM