Setting up a company

[sander]

I am trying to find out if it is possible for me to set up my own company in Thailand but have some questions for the moment.

Do I need to renew my work permit every year and does there still need to be 2 million Baht on the bank? I mean, suppose I can get 2 million Baht I would likely use it to invest, pay rent, wages etc. Even if I make profit the first year there likely would be outstanding bills etc.

Has anyone done it before and know some things about it?

many thanks!

[fester]

You need to renew your work permit every 3rd or 12th month, depending on what visa you are holding.

You need to regsiter the company with 2 Million Baht per Work permit, but you only need to pay up 25% of it,  

500,000 Baht.

You can have the share captal in the bank or spend it on

expenses or inventory.

Incorporation

[sander]

Thanks Fester. I am afraid it is still not clear to me.

I start the company with 2 million on the bank. Then I spent some. At the moment I renew my work permit, the total of my capital (on the bank, inventory) still needs to be 2 million right?

I don't mean to loose money but what happens if let's say after a year my capital isn't 2 million anymore? Bye bye company?

[fester]

You have to pay up 25% of the regsitered capital of 2 Mil (in the compnay bank account) within 90 days from the company regstration.

The rest of the capital shall be in the company not later than the 31 Dec (example!), but can be done with some accounting creativity.

Your accounting company know how to handle this things, it's just bits and pieces on a paper. Basically you need 500K in cach to start up and get your permit. The rest is no problems. TiT.

[James]

Fester

Could you provide more detail on the timeframe  required for remittance of cash to be applied against the working capital requirement? For example does the 2 million baht have to be remitted within 12 months? If so there has to be a way around this. You said there was some theory on creative accounting that could help. I had a few ideas and was wondering if it was similiar to your ideas. I would love to discuss further.  Many Thanks!

James   ::

[fester]

You take a directors loan from your company and pay the company market interest, all legally accountingwise.

Example: If your company are missing 500K in the yearly balance: You as MD borrows 500K from your company and pay 12% yearly interest to the company with a legal, written loan agreement.

I am not an accountant, so you might double check time frame and details with your accountant folks.