Foreigner Is Director Of Thai Company

[EmptyMind]

Say you live in Thailand, and YOU own the Company, and you are drawing money from the Company... My question would be, Is that actually called working ? Because you are maintaining the Company and being rewarded for it.

You are living in Thailand, You have a Thai business and in theory the business is paying YOU for YOUR services so would this either entitle the Director to a WP or require him to have a WP ?

I know this is probably way off topic to the original post but I would be interested how you would stand in that position.

Hopefully someone who knows might answer :-)

Edit: Split form topic "http://www.thaivisa.com/forum/index.php?showtopic=189720" as it is interesting in its own, separate way.

[Maestro]

This is beside the point of your principal question, but since at present a minimum of seven co-founders (shareholders) are needed in Thailand to register a company, no one individual can OWN a company. A foreigner can own at most 49%; he is one of seven or more shareholders.

The answer, by Sunbelt, I have seen is that if a foreign director manages the company in the way you mention or works for the company in any other capacity, with or without compensation (salary), he certainly needs a work permit.

If he is a non-executive director, ie attends meetings of the board of directors but has no executive function and signs no cheques or other documents on behalf of the company, he does not need a work permit. Is he nevertheless entitled to a work permit? He can apply for one but the labour office would want to see an employment contract stipulating a job title and a reasonable salary.

--

Maestro

[bkkflyer]

Say you live in Thailand, and YOU own the Company, and you are drawing money from the Company... My question would be, Is that actually called working ? Because you are maintaining the Company and being rewarded for it.

You are living in Thailand, You have a Thai business and in theory the business is paying YOU for YOUR services so would this either entitle the Director to a WP or require him to have a WP ?

I know this is probably way off topic to the original post but I would be interested how you would stand in that position.

Hopefully someone who knows might answer :-)

Edit: Split form topic "http://www.thaivisa.com/forum/index.php?showtopic=189720" as it is interesting in its own, separate way.

Well... if you are only a shareholder and receive dividend, I assume you would not need a work permit. If you do any kind of work (dont know about board meetings) I assume you need a work permit.

You say "paying you for your services" so it sounds like you are working. It sounds a bit confusing

[Marvo]

Hi EmptyMind, thanks for sharing your similar interest in my issue over WPs. I've added some details broadening the issue on my original post HERE . Maybe we should try to keep this very interesting topic all in one thread if we can. May help to pull in the "big minds" .

Marvo

[monty]

If you just get paid dividends on your 49% shares you do not need a work permit.

The moment you are listed as a director, and every so often you sign company paperwork (cheques, contracts,...) while within Thailand, you do need a work permit.

If however you reside outside of Thailand, and your secretary sends you the documents by Fedex, you sign them while abroad and Fedex them back to Thailand, no work permit is needed.

You'll find for example, if you want to get a mobile phone account in the name of the company, and if you go and apply for that with the phone company, they will refuse to accept your signatures unless you hold a valid work permit!

In short, any signature you put down in the function as director for your company, could be considered void if there would ever be a dispute (i.e. with a customer of your company). So it is not only the risk of getting caught working without a work permit, it is also the risk that your signatures might be not legal in front of a court when something happens!

[CRUNCHER]

What about those people who have set up a company to own property/land. Presumably they do not employ a manager and have to sign documents relating to the purchase of the property/land, legal documents etc. themselves Do they need a work permit?

[monty]

What about those people who have set up a company to own property/land. Presumably they do not employ a manager and have to sign documents relating to the purchase of the property/land, legal documents etc. themselves Do they need a work permit?

Yes they do, unless they sign the paperwork while not within Thailand.

Little true story:

Car in company name, first class insurance, gets totaled by Thai driver (employee).

Claim made to insurance company, after the repair quote from the garage insurance decides to total the car.

To be able to receive the cheque, you have to sign over the car (wreck) to the insurance company.

All necessary transfer papers signed of by foreign director/major shareholder of company (including proof of residency paper from immigration, which incidentally is not needed when you hold a work permit, but back then not known by us).

3 days later, bloke from the insurance company shows up, needs to see work permit of the foreigner. In this case the work permit was in order, so couple of signed copies and the bloke was on his way, after telling us that if the work permit had not been there, the insurance company would not have paid out, and additionally would have sued based on the fact that the transfer papers were signed in a fraudulent way when the foreign person signing on behalf of the company did not hold a work permit.

So be careful when you start putting things on company name when not holding a WP.

Admittedly, there is a very small chance you'd ever get in trouble, but as you can see from above, true to their nature, insurance companies can and will try every avenue open to them to get out from having to pay out, especially when the amount is substantial! At such times not having the WP could seriously bite you in the behind!