How Does A Thai Person Set Up A Company?

[Dancali]

There is lots of good information around this site about foreigners starting businesses, but I was wondering if one knows about a Thai citizen setting up a company. I know that it is significantly easier than for a foreigner, but I need to learn the details.

Basically, I have a Thai friend who helps me with preparing and sending items to the West. I think it would be easier to turn her function into a company structure to which my American company contracts the work than to say that she's my employee. Also, perhaps in the future we could also use her company to get me a work permit.

1. How does she set up a company? What options are available to her?

2. How could she get me a work permit?

Any ideas?

Thanks

[Boh Bpen Yang]

I don't have a website to send you to.

I remember reading in one of the papers not too long ago that the Thai government was encouraging Thais to register their businesses. They were offering money to get the businesses started in an effort to increase tax revenues. I seem to remember a number of around 80% of all thai businesses are running under the radar so to speak. It should be very easy for her to do this.

There are many people here that can tell you more about WPs.

[Indo-Siam]

The process for Thais to set up a Thai Private Co. Ltd. is identical in every way to the processs for non-Thais. If no foreign work permit is needed, the company may set up with any desired capitalization level - the legal requirement is:

1) There must initially, at at all other times, be at least seven initial promoters (shareholders).

2) Each shareholder must own at least one share.

3) Each share must have a par value of at least five baht.

So - a TPCL may be established with 35 baht total registered capitalziation.

If you desire that the company be eligible to sponsor a foreign work permit, it must register 2,000,000 baht capital for each foreigner thus sponsored.

If you want the company to be able to sponsor a long-term entry permit extension for a work permit holder, then - for EACH AND EVERY foreigner employed, the company must have four Thai employees, and 2,000,000 baht PAID IN capital.

The financial requirements for work permit and entry permit extesnion are slightly less stringent to sponsor foreigners who can document that they are legally married to and supporting a Thai spouse.

Good luck!

Steve Sykes

Managing Director

Indo-Siam Group

Bangkok

[email protected]

www.thaistartup.com

[Dancali]

Thanks for the feedback.

I figured it would still be quite difficult if there was a work permit involved but I thought I heard something about a fully Thai company only having to have 1 million in registered capital for the work permit.

Also, if she just wants to establish herself a bit more officially, aren't there other business structures besides the one you mentioned? Can't she just set up, say, a sole-proprietership without much hassle at all?