Getting Workpermit Through Branch Of Foreign Company

[ZUA]

I have a small registred business in Denmark. Is it possible for me to set up a branch of my company here in Thailand and get two workpermits through this company? The company in Denmark is selling divetravel to Thailand and neighbouring countries, with customers from Denmark/Scandinavia. I need to be able to enter and exit Thailand on a regular basis.

Is this possible, and if so, what are the costs and requirements setting this up? Our branch office would be in Koh Tao, Surat Thani, and this is where our customers from Scandinavia will be coming to, no other districts needed.

[digitalchromakey]

I have a small registred business in Denmark. Is it possible for me to set up a branch of my company here in Thailand and get two workpermits through this company? The company in Denmark is selling divetravel to Thailand and neighbouring countries, with customers from Denmark/Scandinavia. I need to be able to enter and exit Thailand on a regular basis.

Is this possible, and if so, what are the costs and requirements setting this up? Our branch office would be in Koh Tao, Surat Thani, and this is where our customers from Scandinavia will be coming to, no other districts needed.

You would be best served by setting up a Thai Limited Company, you will be able to own a maximum of 49% of the company. The other 51% must be Thai owned, you will need a number of bona fide Thai shareholders.

If you capitalise for 4 million and have 8 Thai employees, then you will be able to apply for 2x work permits for foreigners. Strictly speaking the employemnt law does not require you to have the Thai employees, but many labour departments now apply this rule (which comes from the immigration requirement for Extension of Permission to Stay on the basis of business).

Your initial set up costs for such a company, using the services of a reputable law firm, will be in the region of 25-70,000 THB.

You will also need a full TAT license if you are bringing in overseas customers (I think you have a fee/bond deposit of 110,000 THB for this level of license).

There is a mechanism for setting up a branch office of an overseas company, but only for specific limited non revenue earning activity.

You say your Danish company is small, so it almost certainly will not be able to get the necessary Thai BOI approval for special consideration/100% foreign ownership,etc.

Have you though your plan through? Why do you not also plan to send dive travel customers to Phuket/Phi Phi/Khao Lak/Similans?

You should also be aware that the margins here in the dive business are very very tight.

Good Luck

[ZUA]

I not just posting out of the blue here, I have been working in the diving industry in Thailand and elsewhere for quite a while and know how things are running very well. First of all, this is just a question about establishing a branch of a foreign registred company in order to obtain workpermits, without having to form a "normal" thai company with the usual obligation of thai employees etc. I'm well aware of these options, cost and so on.

Trips are sold in denmark, but in thailand we're using the services of a thai diving company as the technical provider of diving services, so we dont "need" this branch (or TAT license), to sell trips in denmark, just a matter of getting workpermits without forming a normal thaicompany.

I was informed that a branch of a foreign company dont have the same obligations to employ thai staff and more workpermits could be obtained for foreign staff, due to the jobrequirements for staff, such as scandinavian language, instructor licence etc.

I will ofcourse seek legal advice in this matter, this post was just to rule options out.

[digitalchromakey]

I not just posting out of the blue here, I have been working in the diving industry in Thailand and elsewhere for quite a while and know how things are running very well. First of all, this is just a question about establishing a branch of a foreign registred company in order to obtain workpermits, without having to form a "normal" thai company with the usual obligation of thai employees etc. I'm well aware of these options, cost and so on.

Trips are sold in denmark, but in thailand we're using the services of a thai diving company as the technical provider of diving services, so we dont "need" this branch (or TAT license), to sell trips in denmark, just a matter of getting workpermits without forming a normal thaicompany.

I was informed that a branch of a foreign company dont have the same obligations to employ thai staff and more workpermits could be obtained for foreign staff, due to the jobrequirements for staff, such as scandinavian language, instructor licence etc.

I will of course seek legal advice in this matter, this post was just to rule options out.

You could open a branch of your company as you describe for non revenue related activity.

The activities of a Branch Office are limited to the following:

• Sourcing goods or services in Thailand for a Head office.
  
• Checking the quality and quantity of goods purchased or manufactured in Thailand.
  
• Giving advice regarding goods sold to agents or consumers.
  
• Information regarding new goods or services.
  
• Reporting and analysing business trends in Thailand (such as quality control).
  

Work Permits based on such a branch office's activities would not allow you to work for your associate Thai dive company as instructors/divemasters. You can get two work permits for such an office.

You company branch would need to remit 2 million baht in Thailand in the first year and a total more than 5 million over 5 years.

Have never come across such a set up being used here in the diving industry before.

Same advice as before which you state you will heed - deal with a reputable law firm and good luck.

[ZUA]

Thank you, that is definately an option. Remit 2 million bath the first year, and 5 million over 5 years as in invest x million bath here? Can this be in property?

[digitalchromakey]

Thank you, that is definately an option. Remit 2 million bath the first year, and 5 million over 5 years as in invest x million bath here? Can this be in property?

The branch office would be considered as part of a foreign legal entity and as such cannot own land.

The remittance cannot be taken back out of Thailand again and is for use as rent/salary, etc.