amarka Posted October 14, 2004 Share Posted October 14, 2004 to me 2m capital does not seem to be a lot for a business ? and should not be a problem for even a small business if its running well? anyone going abroad and starting a business with less than that would be pretty insecure and relying on luck? and if things go wrong, might end up as the type of person thailand does not want... amarka What amarka wre you for real? knock knock is anyone home? I am looking at starting up a business here in Thailand, i forcast that i will spend between B4.5m - B5m in renovation, equipment, lease etc and then i am told i will have to find another B2m from somewhere. Hey i'm the little guy trying to start out and i simply could not afford to find that extra B2m, just coz people are starting up doesnt mean they have an endless supply of money. Lets be realistic here. Tell me amarka what is better A. I go back to England and dont invest in Thailand, i dont employ 6 full time Thai workers and i dont spend any money here for the next 30 years. B or i do exactly the opposite to the above? IYHO which one? B2m may not be a lot to you but it would be to me if i have just sunk B5m in to start up. Realy i want to know you opinion so please do answer. Cheers Mango Hello Mango, The way I understand it is that the 2m would be included in the set up costs of the business, you say you are spending 5m, so as long as you transfer it properly and have set up the business and give your accountant all the relevant paperwork from the bank, then the way I see it you have no problems. I do not see it as another 2m cash, tied up indefinitely, that would be crazy. in my opinion you are a real business person, one who is prepared to invest money and employ locals and do things properly and therefore I think you should continue in Thailand. I don't think you have anything to worry about. good luck amarka Link to comment Share on other sites More sharing options...
noBuzz Posted October 14, 2004 Share Posted October 14, 2004 Reading all of this again makes me realize that it is getting easier to obtain the WP, not harder. NoBuzz Link to comment Share on other sites More sharing options...
sas_cars Posted October 14, 2004 Share Posted October 14, 2004 If the condition of a registered 2 Million Capital doesn't require it to be paid up,then it's absolutely f.ucking easy to get a WP for everyone Link to comment Share on other sites More sharing options...
Foggy Bottom Posted October 14, 2004 Share Posted October 14, 2004 If I already have a work permit, do I also have to show the 2 Mill. Baht the next time I have to extend ? Echo this question. If you have a work permit that's been renewed annually for several years already, will the revised regs mean you have to start over again? Any word, also, on whether this applies to international media correspondents? There's no way press agencies overseas are going to increase registered capital by US$50K per correspondent just to keep them writing articles about Thailand that sell on the global media market for a meagre US$75-150 a pop. OK - 2 people have asked about the position of foreign correspondents - now I'm the 3rd and we're all looking for answers. In my case, the publisher does not maintain an office in Thailand (other than a corner of my lounge in order to meet the regs as they stood earlier this year) Do the new WP rules mean the publisher must invest 2m paid-up capital in a Thai registered subsiduary company? or Will they be allowed to continue sponsoring me as a Thai based correspondent feeding articles back to Europe for publication? Will my employment continue to be as a locally based correspondent employed from overseas? or Must the company establish a legal entity here, which must then become my employer? Will the July WP changes continue to qualify correspondents as needing to receive only 20,000 per month as a minimum taxable salary? or Will the correspondents themselves have to invest 2m in the employing entity? Anyone live close enough to the Ministry of Labour to go shove a size nine up someone's rear orifice and wake them up enough so they liaise with other ministries? Correspondents come under the jurisdiction of the Ministry of Foreign Affairs, and once approved by them are supposed to be moved through Labour & Immigration automatically - so why did Labour take 4 months to change the address in my WP? I foresee a lot of correspondents writing negatively about LOS (under pseudonyms of course - to protect visa & WP) and further discouraging investment. This government appears determined to destroy the Thai economy. Come back Chuan - all is forgiven. Link to comment Share on other sites More sharing options...
sas_cars Posted October 14, 2004 Share Posted October 14, 2004 What finally the news are?Are really these new requirements into effect already?or What? Link to comment Share on other sites More sharing options...
sas_cars Posted October 14, 2004 Share Posted October 14, 2004 I assume everybody here is so confused.I wish Indo Siam or Sunbelt will explain this new rule thing to us soon. Link to comment Share on other sites More sharing options...
dazdaz Posted October 14, 2004 Share Posted October 14, 2004 The new ruling proves that Thailand is still third world because few country's would impose legislation that would harm itself and this proves that the country is not ready for first world status. Anybody who tells you otherwise including Thaksin is lying to you. PS I hope my post is'nt moderated again, this is no longer a free speech forum which is a great shame. Link to comment Share on other sites More sharing options...
Indo-Siam Posted October 14, 2004 Share Posted October 14, 2004 Well, I got about six calls or e-mails today from clients upset by the "news" on this thread. I had to tell them all the same thing - my WP processing person met today with her normal interface contacts at Bangkok work permit office - and was assured that there were no new WP processing procedures - August, September, October, November - all are under the same (unchanged) processing procedures. So - what is this thread about? I have no clue. Having never encountered a client who planned to capitalize at less than 1,000,000 baht, I cannot discuss processes below that level. I check our work permit files for the past six months - and we have processed no one whose company had less than 2,000,000 baht registered capital. It is my belief that a foreigner married to a Thai can get a work permit to work for a company with 1,000,000 baht registered capital - but we've not actually done it - because no one in this situation has engaged us. For sure, we have gotten numerous work permits for individuals whose companies had 2,000,000 baht registered capital - without any documentation in the submission packet addressing the issue of paid-in capital. Again, looking over our work permit files for the past six months - we haven't processed a work permit for anyone who wasn't a company director - so I cannot conclusively address that issue. As of this week, there is no requirement to submit any bank account documentation along with a work permit application - and officials indicated no awareness of any pending change in this process. Today, we were processing changes in work location for three employees of one company. That company has 2,000,000 baht registered capital - and three work current permits. My processor was told that in order to renew the MD's work permit next month, the company will have to raise capitalization level to 6,000,000 baht - no mention of pay-in. We haven't been involved with multiple work permits for any other single company with just 2,000,000 baht registered capital in the past six months - so I cannot state whether this is a change. As the company wants to sponsor at least one long-term extension, they plan to pay-in the full 6,000,000 baht (actually, partly by capitalizing a property they own) - which is the same requirement that I have always advised: if ANY farang in the company wants to have a long-term extension based on employment, then 2,000,000 baht paid-in capital and four Thai employees FOR EACH FOREIGN EMPLOYEE is required. To me, this is not a change - but, I had not previously thought of Work Permit office being involved in this issue - just Immigration. I guess I need to take the instruction sheet I picked up in April, from a literature distribution point at the Work Permit office, back to that office tomorrow - to see if it has been superceded. Summary - my staff says: no capital pay-in documentation required (or even involved in the process), no mention of 3,000,000 baht figure per work permit. Is there a dramatic change in the process here somewhere? Not from my perspective - at least not in relation to entrepreneurs seeking to start a new company. I cannot address companies with big foreign employee head counts, and meager capitalization - because my company has not been involved with such cases. If I learn anything new from visiting "WP ground zero" tomorrow, I'll post an update. Cheers! Steve Sykes Managing Director Indo-Siam Group Bangkok [email protected] www.thaistartup.com Link to comment Share on other sites More sharing options...
Lifelover Posted October 14, 2004 Share Posted October 14, 2004 My reading of the new regulations is that the Thai authorities are continuing to tighten up on farangs who are abusing the system and not contributing significant amounts of money or know-how to the economy. And I can’t blame them for that. First out will be those who are doing business without a WP. That applies to nearly all the barkeeps, to various computer consultants and the like and to a host of unregistered ‘agents’ who are buying Thai goods and exporting them in the name of the shipping company, for example. Such people are harder to find and to catch in the act and on the whole have been left to go about their business without much hassle until recently. They were always breaking the law, but now it may not be as easy to get away with it. Then there are so many people (below retirement age 50) who arrive in LOS, decide they’d like to stay, look into the various laws regarding long term stay, find that by working for a company they can get a 1-year visa, quickly discover that finding someone to employ them is near impossible, so set up their own company. They go to a lawyer who arranges the paperwork and registers a company for them, which in theory they own not more than 49% of (non-Americans that is). They register capital of 1,2 million baht, but don’t actually pay up any of that capital because the shareholder register is a sham. The company itself probably has no business, or very little business. The four Thai employees are the GF, her two sisters and the maid. These farangs are easy to find, because they are registered employees with a WP. By stipulating that the registered capital actually has to be paid up (or 2 million baht per farang employee) the authorities are merely closing another loophole that has long been used. How many of you reading this fall into one or other of these two categories above? And how many others do you know? I feel sorry for you, but those who do will be facing difficulties soon I guess. Those with impeccable characters and Thai friends in high places stand a chance of staying, because TIT. The rest will be weeded out. Just my observation. I’m not sure where teachers and journalists fit into this. I don’t think that those who make and enforce the law care a hoot about how much money the lawbreakers spend here each year. They are concerned more about your legitimacy. I would add that there are also many farang here who do legitimate business through registered companies. They have invested millions, employ Thai people, bring in foreign currency through their business, pay taxes, often raise standards (of product quality and design, business practices and so on) and generally do good for the Thai economy. All power to them and I doubt that they will be faced with any difficulties remaining here as long as they continue to uphold the law and to be good guests in this wonderful kingdom. Link to comment Share on other sites More sharing options...
Sunbelt Asia Posted October 14, 2004 Author Share Posted October 14, 2004 The big change is for the companies that have multiple work permits. We have quite a few of these firms and this is a BIG change for them. Where two million Baht was fine for unlimited work permits before, its now just one WP. No change for the small entrepreneur who is a director and has one work permit. Except, if they start asking for proof of supporting documentation. As of today, they were not asking for proof of paid up capital just that it is registered. www.sunbeltasia.com Link to comment Share on other sites More sharing options...
costas Posted October 14, 2004 Share Posted October 14, 2004 hi, may a newbie ask how , if at all, would those changes affect university lecturers? do we fall in the expert category? cheers costas Link to comment Share on other sites More sharing options...
mike_amata Posted October 14, 2004 Share Posted October 14, 2004 I work for the US Government and am starting to be disgusted at Thai laws. I'm married to a thai national for four years now, she has permanent status in the USA and will be a citizen soon. "thighland" is becoming really crap!!! I was planning to start a business there soon, but they don't even offer me the same respect as my wife gets here in the USA. I can't get a "green card" or permanent residence in Thailand? I say let's stop giving out visas to ALL Thai nationals wanting to go to the USA, immediately!!!!!!!!! Link to comment Share on other sites More sharing options...
george Posted October 14, 2004 Share Posted October 14, 2004 We have a translation of the new rules, so this therad continues here. Link to comment Share on other sites More sharing options...
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