Possible To Set Up Consulting Business Serving A California Company?

[Carmine6]

Likely no one will have a similar situation, but any experiences would be appreciated.

I'm a self-employed consultant doing restructuring/turnaround work. So work prospects are fairly high. But I'm at the point where I lose so much to taxes, extra hours aren't worth it. And we know tax rates are going up. I can reduce my hours and do less on-site work and still make good money. I'm American so would do this under the Amity Treaty, probably as a sole proprietorship.

• First, is it possible to create a company without starting business right away? Is there some time limit until business has to be done or could I fly over, set one up, fund it, fly back to the US and take some months or more to start doing anything under the company?
  
• Next, is it allowable to start a company in Thailand that primarily does consulting services for a US company?
  
• Finally, does it have to be a single business type or could it be multiple business types? Could I for instance run a restaurant and do consulting or do different businesses have to be separate?
  

[Indo-Siam]

Hello C6 -

The answer to all three of your questions is "Yes."

A functioning company (with completed tax registration) on the ground in Thailand must comply with three requirements:

1. Company must maintain a legally-sufficient registered business address - which generally means you must be paying some building owner to certify to the Revenue Department that your company is a commercial tenant, and there must be some human presence at that address, M-F, 9-5, to speak up for your company if Revenue Department pays a visit (person dose not have to be an employee of your company).

2. Company must maintain bookkeeping/accounting support, to ensure that required monthly reports are submitted to Revenue Department - even an idle company is required to submit "negative activity" reports. Since company will presumably be paying at least rent, and bookkeeping fees, there will most likely be some monthly B-2-B activity to report.

3. Company must have a signatory director available on the ground here, to sign monthly submissions - or, possibly this could be handled via courier to you, wherever you might be.

In general, it is not a good idea to start a company in Thailand any earlier than you absolutely need to - either to issue an invoice, to sign a contract, to apply for a license, or to employ someone.

If you want more details about setting up a company, and/or registering for Amity Treaty status, you may contact me by Googling the term Thai Start Up.

If it would be useful, my company can offer you an alternative way to get started - I can supply you with visa sponsorship, a work permit, and an extended entry permit - and you can launch your business as a separate division. In return, you would be expected to contribute monthly profit to the company - in an amount that would be slightly less than the cost of maintaining your own company. You would also have to pay all taxes associated with any income you bought in. You can then pay out to yourself as salary whatever you bring in each month - net of taxes, and your profit contribution to us. We can set up an arrangement whereby income you bring in would go into a separate company bank account for which you exercised sole control. You would have to disclose all income or expense transactions to our bookkeeper, to be integrated into company's consolidated company financial reports. You could operate under this "incubator" program for as long as you wished - and at the point that you found it advantageous to break away and form your own company, we could orchestrate that process for you. Everything is run with 100% transparency - we set mutually clear expectations, and then we meet them. We have multiple existing clients under this program, who can serve as references.

Good Luck!

Steve Sykes

Managing Director

Indo-Siam Group

Bangkok

Edited March 1, 2009 by Indo-Siam

[Carmine6]

Thanks Indo-Siam. That's a pretty interesting alternative. Been a long time since I ran a division.

I'm nowhere near ready logistically. I just was spurred on after reading the tables in Obama's budget. But as I sort things out I'll be in contact.