Low Cost Biz With Wp

[Superskunk]

Hi there,

as a lot of us I am planning to open a small business in Thailand. I want to export some electronic devices. I've read a lot about it on several webpages (BOI etc.) but now I know that I have to invest about 2 Mio. to get a WP.

I have the 2 Mio. but to keep the risk low I don't want to invest it. Is it possible to open a 2 Mio. Ltd. without paying the whole amount?

I know that I will need 4 Thai employees to get my WP. Also it should be no problem for me to pay the tax for my 50`000 Bt. income (I am from Europe). But I want to start small and minimize the risk of loosing a lot of money.

[aqua4]

I know that I will need 4 Thai employees to get my WP.

That does not apply to a BOI approved company.

[Superskunk]

I couldn't find some better information for the WP on the BOI webpage. But I read about that's necessary to employ 4 Thai nationals on a hompage from a German guy. He said, without this you can't get your WP.

But I think the export of electronics would be supported from the BOI, or not?

Edited February 4, 2008 by Superskunk

[Cyberstar]

I don't think seeking BOI-support would go well in hand with not actually investing most - if not all - of the money. In the general case the 2m is just registered capital, and although it is supposed to be paid up (in cash or assets) there really isn't much enforcement nor control whether it is ever done (talking non-BOI SME's). However, one big disadvantage with BOI-promotion is that they're gonna keep a very close eye on you and keep you in a very tight leash. You're supposed to present a business plan on start up investments and such, and they'll want to check your accounts, receipts and such. Surely, one thing they'll want to check is actual money invested - not just figures on a sheet. You can't linger from the approved business plan without their permission. Besides, BOI-promotion doesn't help you save money in the initial stages - the only (direct) financial advantage is a discount on corporate income tax once your business starts to yield profit (after salaries an director's fringe benefits).

[blizzard]

if you not interested in loosing money may i suggest you do smething else. i mean who in their right mind wants thai electronic goods.

[Superskunk]

Yes, the export from Thai electronic products would be suppurted by BOI.

I don't want to sell some electronic toys for 50 or 100 Bath. I want to export some special devices for example machine controllers. The cost of them are in Thailand only 25% of the European price and it is duty free to send it to the EU. So I think I could make with this some good profit.

Ok, I could open a bar but I think I should do something I have experience with.

So if the investment of 4 Mio. doesn't have to paid up in advance this could be a chance for me. Because I want to start small with low costs. If the business is running well I would invest some more.

Thanks for you answers!

[blizzard]

like i said , cheap or expensive products, who wants thai manufactured ones...................lol.

export thai girls you got a chance!

[ATHEIL]

If you register a company 2 mil capitalization is required, tecknically speaking you do not have to have the physical cash. Also with the 2 mil cap you’re entitled to 1 work permit. All additional work permits you either need 4 Thai staff per work permit or you need to add an extra 2 mil capitalization.

[Chang_paarp]

The 4 employees is debated by some, but as you are looking to manufacture you will need at least thins number of people to do the work and the admin, so that is not a major issue. If yo are manufacturing for export you can get some exemptions, a competant lawyer or accountant will help here.

You would be well advised to invest some time in looking for a good location, while the tourist towns are fun, the workforce is not always reliable, so go to where there is some manufacturing. As manufacturing computer and electronics parts make up over 9% of GDP in Thailand there are some skilled people out there making world class products, the trick is to get them to work for you and keep them working for you while you build your customer base.

That said a friend of mine is building a similar business and it is costing well over 2M Baht to set-up, he has BOI exemptions to make things a little easier. He is over 6 months into the building part of project and still has not made anything more than cups of coffee. His comment last night is that everything here takes a bit longer than he is used to as a European, he now has to explain this to the major shareholders at a board meeting on Friday.