Paid up b 2m share capital?

[DanV]

Anyone else in the same position and solved this?  I pushed several times over the years but was dismissed as not necessary by accountants, looks like it is now. Plenty went through Bank account but I doubt it was shown on accounts as investment or share capital.

[sting01]

Hi there,

Depend how much you company was registred, and how much you deposed in cash in your bank account.

Ask Indo Siam, he have the right answer

Sting feat Cheb Mami

Desert Rose

[Dancali]

Does the 2 million have to be in a Thai bank account?  Or could one just show proof of funds in his home account?

[Indo-Siam]

Hi !

This is uncertain terrain.   Commerce Ministry (who run company registrations) don't seem to care.  Immigration doesn't seem to care.  And year-to-date (2003), Labor Ministry has not been asking for bank statements - just a letter signed by company director, stating that X million baht capital has been paid in.  So - it boils down to - how do you feel about submitting a false statement?  A few months back, this was unremarkable.  Now - this is not such a "gimme" issue.

Popular press is giving indications that "the system" will soon require proof of pay-in of capital (as has been the case in years gone by).  As noted in the inquiry, pay-in of capital is different than normal business revenue - in that it is not associated with invoices.

My firm's business has always focussed on compliance - hence my firm has not supported attempts to secure work permits without paying in capital.  But I am fairly certain that this has been possible - including very recently (within past 60 days).

Here is what I do know - regardless of what happens during first year, after you produce your first set of company financials (at end-of-one-year point), this document becomes a key part of the decision processon for renewal of work permit.  If your asset statement and balance sheets indicate that your company is realistically not capable of paying your salary, and four Thai employee salaries, your work permit renewal is likely to be denied.

And - in general - Thai auditors (licensed professionals who must sign off on the annual audit) are not inclined to falsify the books for average farang business owners - if caught, their professional careeer is over, and sensible ones will not take the risk.

What this means is - after one year, if your company books are "strong" and show a good financial position - you are unlikely to experience problems renewing a work permit - even if you cannot document pay-in of capital.

Conversely, if your company's financial condition is clearly flakey, only the fact that you demonstrate compliance with legal capitalization requirements is likely to salvage your position.

In short - I cannot conclusively say what the current situation  is, if you fall short.  If any problems arise, it will tend to be with Labor Ministry in their approach toward work permit renewals - not in relation to initial incorporation of a Thai Private Co. Ltd.

Did that "answer the mail?"

Cheers!

Indo-Siam