Who You Going To Trust?

[Sunbelt Asia]

A client sent me the following correspondence with a local service provider. It is 180% degree different than what I posted yesterday in refrence to the number of Thais needed for a work permit and that foreigners can own a export company 100%.

The ironic twist is they copied our rate fee to the word on their web site and have lowered their rates by 50 to 100 Baht under ours. No problem there but please be creative. Don't take every word and presto we can give advice.

All I can say, is no wonder clients are confused! My comments are in bold

Subject : Set up company

Detail : I will be starting a export company shipping cars. I will need 2 work permits. Please advise the procedure. Please provide a quote on accounting as well. Thanks

Dear Mr. ....,

Pursuant to your matter in corporating the limited company please be informed as below;

1. Corporating the Thai Company Limited in concerning to operate your own business of which the company limited shall have

1.1 The preliminery basis in the formation of a Thai Limited Company, 51% Thai and 49% Foreigner holding the shares;

This is exporter company. NO percentage share holdings is required by Thai nationals. It can be 100% owned by foreigners.

1.2 You should have at least 7 natural persons to promote the formation of Thai Limited Company. Each promotion require to subscribe at least one share and all promoters need not to be Thai residents or citizens, however the proportion of the promoters should be more than half as Thai national;

More than half as Thai nationals? It only has to be one Thai if this was say a restricted business like service. This is exporter company. NO Thai nationals are required as promoters.

1.3 The Registered Capital is the multiple of number of shares by the par value of each share with the minimum value Baht 5 per share. The capital shall depend upon the operational rrequirement of the company which is possible in certain limited circumstances, to contribute for shares by way of services or properties but extensive proff of value is required.

Certain limited circumstances? Proof to whom? Noone ask for proof of financials for at least a year. Then the only determination is can you continue to support a work permit

However, if the company need to employ a foreigner (ie. directo, managing director, etc.) then the policy of the Employment Department, Ministry of Labour and Social Welfare should be applied such as Baht 2,000,000 registered capital, fully paid up and four Thai employees per one foreign employee in order to eligible to apply for a work permit for such foreign employee.

Concerning your case, it is advisable that you should have at least Baht 4,000,000 registered capital with 8 Thai employees;

Really???? Their is no such requirement of the Labor Dept. having 8 Thais employed to get two work permits

1.4 Time Frame : In the normal case, the whole process for registration will be taken not longer than one month, counting from the first date of submission of the application forms and relevant documents to the Ministry of Commerce.

2. Pursuant to your case you, please clarify that you will be an exporter together with being the manufacturer or you will be only an exporter of cars?

Both can be owned by a foreigner. Still a valid question in regards to a factory license that may be neeeded

3. Applying to be the Thai Exporter with the Ministry of Commerce of which taking approximately timeframe of 2-3 months;

It only takes one day after you get your work permit to get a import export license not 2-3 months!

It would be highly appreciate if you could provide us more information concern, so that we can give you the right information and quote fee.

Right information!

www.lawyer.th.com

[sajal]

in 2000 we had bought a company in thailand based on 49% foreign and 51% thai investors.

the registered capital is 2 million.

the company now ownes properties....cars, etc. and supports 1 work permit.

the company is purely an export company.

as per your comment above, the company can be changed to 100%, pls advise.

[Sunbelt Asia]

as per your comment above, the company can be changed to 100%, pls advise.

Yes it can. We be happy to change the shareholder names if you like to all foreign.

www.lawyer.th.com

[sajal]

please note that my company is not BOI promoted, just a normal company.

would there be any ristrictions? can 100% foreign owned company buy land? or on the date of ourchase we have to change to some foreign-thai ratio?

has there been a change in the laws since 2000?