Export-import: France/thailand

[yadetout]

Hi friends,

After opening my first import company in France from China, I wish to create a new one here in Thailand to Import goods from France and export goods from Thailand.

I asked some advices around and here is one of the answers.

As long as you will not pursue an Immigration extension, then you can proceed as follows:

1. Start company

2. Pay-in some actual amount to company bank account

3. Pay "lawyer" fees

4. Add together the sums from steps #2 and #3, and subttract from 2,000,000 baht. Record the remainder as loaned out to director.

5. Begin exporting-importing 6. Issue invoices to overseas buyers - and they pay in to your Thai company bank account

7. Do not record the invoices here in Thailand - simply specify all incoming funds as "repayment of director's loan" - and deduct their value from nthe outstanding lon balance. 8. Comntinue the approach at Step #7 until loan balance is zero 9. Thereafter, record all incoming payments as normal revenue Your only challenge is that if it takes more than a few months to pay down 2,000,000 baht, then your company will be recording no income - and the Revenue Department may put pressure on you to earn revenue, or they will revoke your tax and or VAT registrations. A way to address this issue is to book some incoming paymenst as revenue, and some as loan repayment. You can "carry" the loan to director on your company balance sheet for years - it is technically a company asset. If you wish to apply for long-term Immigration extension, you will the need: 1. Four Thai employees on the books. 2. Minimum year-end asset balance of 1,000,000 baht (can include amount of director's loan) 3. Each year' taxable revenue must be sufficient to pay all foreign salarise for the following year What I describe above is not some exotic, bizarre approach - it si thew ay most foreign-managed companies operate (or originally operated) in Thailand.

I would like to know what you guys think about that?

It sounds a little bit difficult but I'm not afraid. However, I met some lawyers who seems to make it so easy and simple that it sounds Strange.

Plus, there is this new law that everybody wait... I understood the 3 shareholders comparing to 7 before, but what else?

Thank you for your feedback.