Running Your Income Generating Website Legally From Thailand

[kiakaha]

just curious..there are several well known foreigner run websites that derive income (advertisements ,memberships etc...) that are run by people physically in Thailand...how do you structure your business regarding corporate entity type, work permits, tax etc....

Edited November 30, 2008 by kiakaha

[girlx]

good question, i am wondering this myself...

[kiakaha]

hmmm..not many definitive answers..i guess one has to presume..ILLEGALLY

[LinkPopularity]

I'm one of those guys

yes, its like a dream; making money online and living on a tropical island

[McLovin]

just curious..there are several well known foreigner run websites that derive income (advertisements ,memberships etc...) that are run by people physically in Thailand...how do you structure your business regarding corporate entity type, work permits, tax etc....

Good question .... anyone?

[Shah Jahan]

the answer you are looking for is in a cheap law office somewhere between Kowloon and Wan Chai

falang not allow to work in thailand.

[asiatravelguide]

I suppose there are a lot of people doing this, but I can imagine most just work on tourist visas and be tourists while in Thailand.

As long as you don't start telling everyone what you are doing and don't earn income from Thai companies, then it shouldn't be a problem.

If you start a website and earn baht from local companies and individuals you may need to investigate setting up a company.

[Geekfreaklover]

It's in the wrong forum anyway.

Ask the question, with a new topic in the business forum. You might get a sane reply over there.

[onlooker]

I've got a couple of sites that make enough money to live on here. Just go ahead and do it. Money is paid into overseas accounts or credited direct to my credit card. Thai authorities have bigger fish to fry than someone running a one man website. No Wp but a 12 month Multi entry Non imm B visa - fine for me until I hit 50 and then just get a retirement visa.

[endure]

hmmm..not many definitive answers..i guess one has to presume..ILLEGALLY

How many definitive answers do you expect in 14 minutes?

[NarcissusRIP]

just curious..there are several well known foreigner run websites that derive income (advertisements ,memberships etc...) that are run by people physically in Thailand...how do you structure your business regarding corporate entity type, work permits, tax etc....

Having a website located on a server in Thailand you mean?

[kiakaha]

hmmm..still no real answers.

I've been working in thailand continuously for 13 years with a WP and paying PIT.

i dont want a web based business of my own, period.

i want knowledge about how one structures their internet based operation legally(corporate structure, work permit, tax) when they are physically running it from thailand.

I've always been an employee here in Thailand, not setup my own operation, so I have little exact knowledge in this area.

if you can't focus on the exact specifics of the question when replying, then please dont.

[freitag1]

Here comes your answer:

Its all the same as with any other company you want to run here plus in some cases you should get an e-commerce license. Accounting can become quite a hassle if you don't come up with a funky script that whips the numbers in the shape the government people want it.

Edited December 1, 2008 by freitag1

[kiakaha]

in some cases you should get an e-commerce license

never heard of these ? got any links ?

[bonobo]

I know two people who make a living from the web while living here. One has adult sites and one has "normal" sites. Neither one has any sort of work permit. They just do it. And as one poster here wrote, the authorities have more important things to do than track down little one-man operations. I should probably note that neither person has any content here in Thailand. THeir servers are in the US and the UK, and both remotely access a computer back in their home countries to work on their sites. In a way, this is somewhat akin to a businessman on vacation here for a couple weeks but who still works via e-mail each day.

In my past, I was a slightly well-known internet pioneer, and I made quite a bit of money doing that. But I was not able to keep up with the corporate world getting into the game and Google's ascendency, so I went into other fields. However, I do have some residual sites which generate a little income (especially around Christmas time), and I do work on them from Thailand when the need arises. However, I have a work permit, and as four of my sites are directly related to my Thai factory, I do not worry too much.

[cclub75]

Still the effluent continues....

Is it that hard to answer the question ? Maybe the Mods who are based in thailand have an answer ?

I agree that the fight about "attitude" is laughable.

However, if you don't have a proper answer, maybe it's because your question is flawed.

Furthermore, I believe you already had your answer : a web based business is (at first glance) no different (if you want to have a proper legal framework) than any other businesses.

It just more complicated, regarding thai law, than opening a factory for instance... because being (mostly) "service business" you'd have to deal with the Foreign Business Act (List 3 of the FBA, plenty of info on this forum about this law).

Now... if we dig a litte bit more... you would have to give details about your web based business. Because this group is really large.

Is it distribution orientated (physical goods ? or dematerialized like software), content with advertising (but legal or porn?) ? etc. etc.

That could modify the proper legal framework.

Last point : the scale.

It seems that you take in reference individuals who create income from "content" websites hosted abroad... But amounts might be too low to justify the creation of a company, and the... payment of taxes.

Edited December 5, 2008 by cclub75

[endure]

I've deleted all the flames in this thread. If anyone has informative answer to the OP's question they're welcome to post them. Flames are not welcome.

[kiakaha]

Still the effluent continues....

Is it that hard to answer the question ? Maybe the Mods who are based in thailand have an answer ?

I agree that the fight about "attitude" is laughable.

However, if you don't have a proper answer, maybe it's because your question is flawed.

Furthermore, I believe you already had your answer : a web based business is (at first glance) no different (if you want to have a proper legal framework) than any other businesses.

It just more complicated, regarding thai law, than opening a factory for instance... because being (mostly) "service business" you'd have to deal with the Foreign Business Act (List 3 of the FBA, plenty of info on this forum about this law).

Now... if we dig a litte bit more... you would have to give details about your web based business. Because this group is really large.

Is it distribution orientated (physical goods ? or dematerialized like software), content with advertising (but legal or porn?) ? etc. etc.

That could modify the proper legal framework.

Last point : the scale.

It seems that you take in reference individuals who create income from "content" websites hosted abroad... But amounts might be too low to justify the creation of a company, and the... payment of taxes.

thanks for your reply.

as mentioned, i dont want a web business, i want knowledge of the legal side of operating it from thailand.

i think i get the jist from your post . a foreigner running a website from thailand requires a wp, therefore a company to support the wp etc.. etc...

know anything about this e-commerce license that another poster mentioned ?

[Jimjim]

Basically you can do it legally, by setting up a company and having the money come into Thailand. It's quite simple and just like starting any foreigner-run business in Thailand. You have to follow all the rules of setting up a business, of course. Nothing saying foreigners can't do it, though. This forum is an example.

Others just do it illegally, although they are unlikely taking jobs from Thais and thus are unlikely to be bothered. It's somewhat of a gray area in my opinion although others claim it's absolutely not, although they are usually looking at it from their Western mindset, and not the Thai mindset. Just about everything in the law is a gray area in Thailand.

[Khun Jean]

BVI Company in Hong Kong.

[kiakaha]

Others just do it illegally, although they are unlikely taking jobs from Thais

but commiting tax fraud (by not paying income tax) , a criminal offence in Thailand

[nostradumbass]

Others just do it illegally, although they are unlikely taking jobs from Thais

but commiting tax fraud (by not paying income tax) , a criminal offence in Thailand

With context to the original poster's question, I disagree with most of the posters who replied to this thread barring one or two who gave informative or similar replies.

Here's my take:

Given the fact that you are a foreigner residing in any country (in this case Thailand) in the world, AND you have an income generating website (registered to you) set up outside of Thailand (say on a server in USA/UK/Australia), and, the revenue from your websites are paid into your foreign bank account (via Credit card processing, or via PayPal as most business websites are set up this way) , THEN, I don't see any reason to register as a business in in the country that you are located in (in this case Thailand) - regardless of your status in that country (ie tourist, employed, business owner). Simple as that. Surely, you knew this already?

I am sure that you would have to abide by tax-laws in your country / the country where your bank account is located. Say you are an UK citizen and you are the owner of a website (example eBay.co.uk) - you are residing in Thailand for the last 10 years - and your business is registered in the UK - your income is paid into your UK bank account - so you must already paying taxes on your business income in the UK - why would you want to do any sort of registration in Thailand - you don't need to! There might be a case where Thai immigration / government might require you to declare all outside sources of income - but that is for information only - I don't think they would tax you?

Some countries like South Africa (and United States also, I am not sure) have laws that require it's citizens to declare all income and pay income tax on the income that they make while they're employed outside of the country!

(I am an *Indian and have the exact same questions as you - I am planning to start a couple of income generating websites - and I am going to use a PayPal vendor account [hefty yearly service fee]- with revenue payments made to my Indian bank account - I haven't yet registered as a business in India, and will only do so if the law requires me to do so, which frankly is quite obscure with regard to internet businesses. If anyone has specific information about Indian business/tax law in this context- would be glad if you could post here or PM me.)

Cheers,

Notra Damus

[Soutpeel]

Some countries like South Africa (and United States also, I am not sure) have laws that require it's citizens to declare all income and pay income tax on the income that they make while they're employed outside of the country!

Completely wrong, US yes to a certain degree....If you are outside SA working, you are not required to declare your income to the SA tax man...

[kiakaha]

Others just do it illegally, although they are unlikely taking jobs from Thais

but commiting tax fraud (by not paying income tax) , a criminal offence in Thailand

With context to the original poster's question, I disagree with most of the posters who replied to this thread barring one or two who gave informative or similar replies.

Here's my take:

Given the fact that you are a foreigner residing in any country (in this case Thailand) in the world, AND you have an income generating website (registered to you) set up outside of Thailand (say on a server in USA/UK/Australia), and, the revenue from your websites are paid into your foreign bank account (via Credit card processing, or via PayPal as most business websites are set up this way) , THEN, I don't see any reason to register as a business in in the country that you are located in (in this case Thailand) - regardless of your status in that country (ie tourist, employed, business owner). Simple as that. Surely, you knew this already?

without a company in thailand, that as I understand will also have to show tax payment records as part of the work permit process, how would you propose that the foreigner gets a work permit to LEGALLY perform the work from thailand then ?

[Soutpeel]

[quote name='nostradumbass' post='2390066' date='2008-12-07 as

without a company in thailand, that as I understand will also have to show tax payment records as part of the work permit process, how would you propose that the foreigner gets a work permit to LEGALLY perform the work from thailand then ?

Very simple you cant...your WP has to applied for by a Thai registered entity...

Edited December 7, 2008 by Soutpeel

[Rabeang]

Simple answer is to set up a virtual office with one of the multitude of law firms in Thailand. Register you company and you will need a Thai partner in this. If you are selling online, then you should apply for an ecommerce license. If you are making money from you content and advertising then it's just a matter of meeting the minimum income requirements for your nationality. You will have to pay tax on that income. It's not really that hard to do.

Some lucky individuals have even managed to get themselves set up on Media Visas and work permits for publishing on their blogs.

[Scott123]

Simple answer is to set up a virtual office with one of the multitude of law firms in Thailand. Register you company and you will need a Thai partner in this. If you are selling online, then you should apply for an ecommerce license. If you are making money from you content and advertising then it's just a matter of meeting the minimum income requirements for your nationality. You will have to pay tax on that income. It's not really that hard to do.

Some lucky individuals have even managed to get themselves set up on Media Visas and work permits for publishing on their blogs.

If your web server is located in a foreign country, your revenue comes from that country, and you pay tax in that country, why would you want to register the company in Thailand and pay tax in Thailand?

[satiariyan]

With context to the original poster's question, I disagree with most of the posters who replied to this thread barring one or two who gave informative or similar replies.

Here's my take:

Given the fact that you are a foreigner residing in any country (in this case Thailand) in the world, AND you have an income generating website (registered to you) set up outside of Thailand (say on a server in USA/UK/Australia), and, the revenue from your websites are paid into your foreign bank account (via Credit card processing, or via PayPal as most business websites are set up this way) , THEN, I don't see any reason to register as a business in in the country that you are located in (in this case Thailand) - regardless of your status in that country (ie tourist, employed, business owner). Simple as that. Surely, you knew this already?

I am sure that you would have to abide by tax-laws in your country / the country where your bank account is located. Say you are an UK citizen and you are the owner of a website (example eBay.co.uk) - you are residing in Thailand for the last 10 years - and your business is registered in the UK - your income is paid into your UK bank account - so you must already paying taxes on your business income in the UK - why would you want to do any sort of registration in Thailand - you don't need to! There might be a case where Thai immigration / government might require you to declare all outside sources of income - but that is for information only - I don't think they would tax you?

Some countries like South Africa (and United States also, I am not sure) have laws that require it's citizens to declare all income and pay income tax on the income that they make while they're employed outside of the country!

One thing is lacking in your line of thoughts and that's whether the website owner is doing work while located in Thailand. Certainly one can live happily and legally in Thailand if all one does is to transfer money, generated by some cleverly architected website that just keeps on pouring money into some bank account without any kind of maintenance required. It's perfectly legal to transfer money from an overseas bankaccount to a thai one without a workpermit, but that's also about the only thing a website owner can legally do with respect to his website without a workpermit.

As I understand the spirit of this thread it's about how to do it in the legal way - rather than just how to do it - and as already been said the starting point would be to set up some properly registered Thai business entity that can provide a workpermit (assuming you actually do need to work a bit to keep the money stream flowing).

[satiariyan]

Simple answer is to set up a virtual office with one of the multitude of law firms in Thailand. Register you company and you will need a Thai partner in this. If you are selling online, then you should apply for an ecommerce license. If you are making money from you content and advertising then it's just a matter of meeting the minimum income requirements for your nationality. You will have to pay tax on that income. It's not really that hard to do.

Some lucky individuals have even managed to get themselves set up on Media Visas and work permits for publishing on their blogs.

If your web server is located in a foreign country, your revenue comes from that country, and you pay tax in that country, why would you want to register the company in Thailand and pay tax in Thailand?

Are you located in Thailand? Does your website need your assistance to keep on generating revenue? Do you wan't it to be legal? - In case you have to answer 'yes' to all 3 questions, you just can't make it without a properly registered Thai business entity ... (You can make it without such a thing if you don't answer 'yes' to more than any 2 of the questions, though).

[ConceptGuy]

the answer you are looking for is in a cheap law office somewhere between Kowloon and Wan Chai

falang not allow to work in thailand.

Thailand is not the Internet, hehe...