The Best Way Is......?

[bkkmadness]

I'm looking to start up a business in Thailand, and I want to set it up through one of the Sunbelt, Indo Siam style companies.

Does anybody have any recommendations or warnings about using either of these companies? I would like to hear the benefits and disadvantages of using either of them.

Also, what other options out there? Did anybody hire a private Thai Lawyer and go through regsitration theirself that way. Do you think that way has any ad/disavantages?

Are there other options I am missing?

Thx in adavnce for any help.

[Sumitr Man]

Whilst essentially all forms of private limited company are set up in the same way, it might be helpful if you said (generally) a little about what type of business you want to do. The reason I ask, this may have some effect on the Objectives and AoAs of the company - which may cause there to be more work.

Also, do you need nomineee shareholders, or do you already have 6 other shareholders to run with?

[bkkmadness]

I'm planning to start an information based website, profit making from advertising and affiliations.

Would really like info on whether the co. needs to be registered here or could it be registered abroad?

Could I register a company abroad, with a business bank account here?

Reason for the above being I'm happy to pay tax here if it means I can get the appropriate visa for a long term legal stay.

I want to make this a totally legit company, preferably regsitered in Thailand but with all the company starting laws/red tape here that may not be feasible, as I don't have a massive amount of capital to start the company up with.

Help would be gratefully appreciated from anybody, especially if they run similar kinds of internet based business.

[Indo-Siam]

Starting a company here and obtaining a work permit are both fairly easy for a start-up entrepreneur.

What is tough for a "bootstrapper" is building the company up to a point where it qualifies to support a long-term entry permit extension. Without this, you must make a visa run at least every 90 days - re-entering Thailand on a valid non-immigrant visa each time, and the applying for a 90 day revalidation of your work permit.

To qualify to sponsor one extended entry permit, a company must have 2,000,000 baht paid in capital, and four Thai employees - and the company must be based in a "substantial" office - meaning that if Immigration inspector shows up, he must encounter at least some employees at the registered business location - with the ability to muster you and the other employees for an identity check, within a resaonable amount of time.

If you can live with doing 90 day visa runs (it GREATLY helps if you can secure a one-year multiple-entry Class B visa), then all you need to do is incorporate a company with 2,000,000 baht registered capital (you are supposed to pay-in at least 25% within 90 days - but no one checks this), and apply fora work permit to serve as Managing Director (it is very helpful if you can document a university degree).

Good luck!

Steve Sykes

Managing Director

Indo-Siam Group

Bangkok

[email protected]

www.thaistartup.com

[Sunbelt Asia]

Could I register a company abroad, with a business bank account here?

Sorry the answer is no.

I'm planning to start an information based website, profit making from advertising and affiliations.

I take it; this will be advertising in Thailand and a website based on Thailand. Who will be approaching the firms to advertise? How many employees will you need?

As for setting up a Thai limited company. The most important is having a firm that is good and you can trust. You will be a minor shareholder and you will need to be sure you have control legally over the limited company so you can't get kicked out. Having simple nominees is not only illegal it has pitfalls as well.

The reason we started with one licensed lawyer and now are up to thirteen legal staff, is simply the misinformation that is out there. Many so called experts don't have a clue. If they do know, the rates they charge are VERY high.

I must say Steve at Indo Siam is a good man. He is one of the few exceptions.

www.sunbeltasia.com

[Sumitr Man]

If they do know, the rates they charge are VERY high.

Whilst I would agree that the hourly rates for lawyers at firms like White & Case and Baker may be seen to be high (at circa 150 US plus), I was lead to believe that firms such as Siam Premier did this kind of work for circa. 30k [baht]. Also, these days, don't the accountacy firms - like KPMG - do this sort of work at fairly acceptable rates?

SM

[Sunbelt Asia]

Have not heard anything negative about Siam Premier so if their legal rates are 30,000 for company registration that would ok. I think they are 25,000 for a work permit. Have heard of a number at 40,000 to 50,000 for this.

Not sure on legal with KPMG, however, their reputation is being slow on their accountant service in Thailand but that goes with 99% of the accountant firms no matter the price charge.

Too be frank, our legal department was not set up as a money generating center but as a way to introduce our brand for when they want to sell their business one day and more important to get some good advice to clients without them having to pay an arm and a leg. Because of volume, our legal department does make money.

Interesting enough, we had an market analysis done a month ago on our legal department and was pleaded in the report to raise our price as the consumer feels high price means quality. The individual filing the report, felt we are doing high volume but would do many more cases by simply raising the price including multinational firms at a higher gross margin. For now we are going to keep it at these legal rates of 3,900 Baht for company registration and 7,800 Baht for work permits. We do get quite a number of referrals so kinda hard to change plus we like being different. :-)

www.sunbeltasia.com