Have I Done Things Right.

[tuktukmike]

Hi All (again)

I registered my company 1,000,000 bht in january this year and am moving to Thailand permanently on the 6th of october this year.

When i return my lawyer says i must now upgrade to a 2,000,000 company so i can get my work permit and also an export license, i already have my B visa and am just hoping i am going the right way about this.

I have been exporting from Thailand for the last five years but last time had problems due to the fact that the factory is in turmoil, The Thai owner left his wife for a much younger Thai woman and left her alone to run things,

She has got into loads of debt due to taking out credits from the bank so as a result the company is no longer registered, this meant i had to send my last containers as personal effects and pay customs a hefty sum so as to not open container.

So this is why i now have to set up company on my own and am hoping to buy from the present owner, what i am worried about is all my personal effects leave England on the 8th october and i must have work permit in place by the time it arrives or i am told i cant get them into the country, also my car which is coming by Ro Ro.

I am married (25 years) and not to a thai. so this i am told does not help.

Any advice would be really appreciated.

Many thanks, mike

[tuktukmike]

Just a small ad on,

We are also applying for an import license for food products and we have already sourced an export company to pack and containerise these products.

This is why i dont want any hiccups

mike.

[Indo-Siam]

It is correct that your company should have 2,000,000 baht regsitered capital, in order for you to obtain a work permit, to work for it.

Changing registered capitalization takes one day. Work permit takes one week, from application submission to approval.

I'm not going to do your lawyer's job for him.

If you need help, and your current lawyer is too slow, my firm can handle this. But we would need all your company documentation.

Good luck.

Steve Sykes

Managing Director

Indo-Siam Group

Bangkok

[email protected]

www.thaistartup.com

[tuktukmike]

Thanks steve,

I was told by my lawyer that to get work permit and export license i would need to raise the capital of my company.

This will not be one of the regular shelf companies that most ex pats form in order to own land or buy a bar in their own name but a full functioning company.

I was told my lawyer was the best around but he informs me a work permit can take many weeks to come through. and as you can imagine i am a little worried that if my personal items arrive in bkk and all is not in place i could be in limbo.

I will contact you should i have any problems if thats ok with you, and just hope for now all goes well.

I was also told by many friends that as far as the factory goes its best to buy in company name then lease back to myself for a rolling 30year lease with a clause that allows it to belong to me should the laws on foreign ownership change.

Hope i got good advice.

Many thanks Mike.

[Sunbelt Asia]

When i return my lawyer says i must now upgrade to a 2,000,000 company so i can get my work permit and also an export license, i already have my B visa and am just hoping i am going the right way about this.

If you are the director, then this is required. If you are just an employee and not a director than 1 million baht is ok to get the WP. A WP is reqired to get a export license. No minimum registered capital company is required except the minimum registered capital to obtain the WP. ( Depending if you are a director or employee)

I was also told by many friends that as far as the factory goes its best to buy in company name then lease back to myself for a rolling 30year lease with a clause that allows it to belong to me should the laws on foreign ownership change.

This is an good way to lease if you have a company. You loan your company money to buy the land and the lease in effect is owned by the company via the buyer. You in effect have taken a lease out on a particular piece of land you wants to own with your own money. This then becomes an asset of the company and can be paid back to you when you want.

By the way,the current law is that leases on commercial and industrial property can be up to 50 years, and a right to renewal option of up to 50 years is allowed.

www.sunbeltasia.com

[tuktukmike]

Hi

Thanks Sunbelt Asia.

I had no idea that you could do a 50 year lease,

Now you can see why i asked for advice on this forum, you tend to hear so many different things when you are there from so many different people and i feel the wrong advice can cause a lot of problems in the future.

I will take on board what steve and yourselves have told me and just keep my fingers crossed that all works out ok.

My biggest fear is my car at the moment, and i know everyone says dont even try but as i have said before it is my pride and joy and there is no way i can leave it behind.

It is onlt a 1990 Toyota Supra but i have owned it for years after buying as scrap and rebuilding the car from top to bottom. i know this sounds mad but i am making it look really rough at the moment by spraying primer in places knowing that i can T Cut it off at a later date.

Anyway thanks again and will let people know how i get on in this forum.

Mike.

[Butterfly]

Personal items are not taxed if you have a WP or B visa

However your car, this is going to be another issue. You will be taxed the full amount of what they call the CIF value, basically a rough estimate of your car second hand value, to wich they apply a cool 80% tax + VAT (new 2002 rules, no more long "registration" discount)

So if you car value in Thailand is 200,000 baht, expect to pay 180,000 baht import duty

make sure to have your car import license (authorization in Thai speak) before importing the car or else it will mean more in "tea money"

More here from their official site (not updated for the new car rules):

Household items:

http://www.customs.go.th/Customs-Eng/House...old#requirement

Car:

http://www.customs.go.th/Customs-Eng/Perso...Nme=PersonalPer

Welcome to Thailand

[tuktukmike]

Thanks for that Butterfly,

It is not the 80% that worries me its what the Customs decide on the value of the car.

In the uk i only paid £1200 for it as a wreck and i do have the original bill, but i know what customs are like, but never mind if they ask too much then i will have to send back to England.

It will be on a Ro Ro as this keeps the CIF down to a small amount. if i was to be honest i am hoping that the shipping company i have used for ages will be able to do a deal with customs and pay a little tea money, or a lot.

I have always exported from Thailand so this is the first time its going the other way so you could say this will be a learning curve.

God help me

Thanks , Mike

[tuktukmike]

BTW thanks for that web site you showed on your message.

First time i have seen it, my understanding is that i will have to pay 80% import tax on the car but looking at the site i maybe due 70% discount due to the age of the vehicle.

Fingers crossed and thanks again.

Mike.

[Butterfly]

BTW thanks for that web site you showed on your message.

First time i have seen it, my understanding is that i will have to pay 80% import tax on the car but looking at the site i maybe due 70% discount due to the age of the vehicle.

Fingers crossed and thanks again.

Mike.

If you look my post above, I precisely say that the 70% discount is no longer in place (the Thai customs website hasn't been updated I guess) since a new 2002 rule that tried to simplify everything.

The CIF value is the killer. It's not what you pay for, it's what Custom officials "feel" like the resale value of the car could be in Thailand. So for a POS you paid 100,000 baht, you will still have to pay another 80,000 baht in import duty

Importing a car in Thailand is a bad bad idea. many have tried and failed, costing them a bundle in the process.

[tuktukmike]

Thanks Butterfly,

Missed that little gem.

Not to worry, if they ask too much i will just send it back.

The cost Ro-Ro is only £845 each way so nothing ventured nothing gained.

My shipping agent in Bkk told me that Thailand does not want imports but only to export,seems like they only want to do trade one way.

I wonder how long before other nations decide to impose trade restrictions on Thailand if they carry on this stance.

Strange as if i import Thai products into the EU and get a general preferance certificate i get 4% discount depending on commodity code, i am told this is to help Thailand export their productd Europe wide.

Not quite fair trade, me thinks.

Mike.