Startup Advice Please...

[DeepSea]

I have seen a number of ads for companies offering business registration/startup services. I would appreciate referalls from anybody who has had a positive personal experience of using the services of any specific company in Thailand please (either openly in the thread or by PM if you wish).

Please, if you work for such a company, I am not interested in you promoting your services. I would like to hear from those who have used such a service only.

As a follow up, could anybody tell me what the minimum capitalization required on business registration is... and whether the amount is due immediately, or can be paid over an extended period?

Thanks, Deepsea.

Edited November 20, 2009 by DeepSea

[Theyreallrubbish]

I found Sunbelt Asia in Chiang Mai to be helpful. I got 4 quotes and they were around the same price as local Thai lawyers who have no experience and were asking me to go look up the law for them!

You can have any capital you like and pay up any amount you like, but if you want a work permit you need 2 million fully paid at the time of application to get it.

And you need to pay a minimum salary, or at least show you've paid tax on that amount, based on your country of origin to keep it as well as 4 full time Thai employees that you pay social security tax for in order to get the non-im B extended

[DeepSea]

You can have any capital you like and pay up any amount you like, but if you want a work permit you need 2 million fully paid at the time of application to get it.

And you need to pay a minimum salary, or at least show you've paid tax on that amount, based on your country of origin to keep it as well as 4 full time Thai employees that you pay social security tax for in order to get the non-im B extended

At the risk of sounding a little dense, isnt a work permit a requirement when setting up business in Thailand. How is it possible to pay less than the 2 million, fully paid up and still run a business?

Also, I already have a non-im O visa, does this meet the requirements for business start up or must I change that for a non-im B ?

Thanks for your response

[Theyreallrubbish]

You can have any capital you like and pay up any amount you like, but if you want a work permit you need 2 million fully paid at the time of application to get it.

And you need to pay a minimum salary, or at least show you've paid tax on that amount, based on your country of origin to keep it as well as 4 full time Thai employees that you pay social security tax for in order to get the non-im B extended

At the risk of sounding a little dense, isnt a work permit a requirement when setting up business in Thailand. How is it possible to pay less than the 2 million, fully paid up and still run a business?

Also, I already have a non-im O visa, does this meet the requirements for business start up or must I change that for a non-im B ?

Thanks for your response

You only need a work permit if you intend to work in the business. I discussed the same matter with the lawyer and asked if it was legal for me to do the work to set up the company in order to get the work permit and he said that strictly speaking its not, but the Labour Department won't make an issue of it. I could have had my Thai manager do all the work and control the business through letters of authorisation for specific acts, then I wouldn't need a work permit and wouldn't have needed to pay up the 2 million, but that didn't sound that safe to me so I paid up to do everything completely legally

Can't comment much on visas other than to say that setting up the company and becoming a shareholder doesn't involve your visa. You'll need a non-imm B to apply for the work permit I believe. Don't know if any other type of visa would be acceptable.

[kcore]

You can have any capital you like and pay up any amount you like, but if you want a work permit you need 2 million fully paid at the time of application to get it.

And you need to pay a minimum salary, or at least show you've paid tax on that amount, based on your country of origin to keep it as well as 4 full time Thai employees that you pay social security tax for in order to get the non-im B extended

At the risk of sounding a little dense, isnt a work permit a requirement when setting up business in Thailand. How is it possible to pay less than the 2 million, fully paid up and still run a business?

Also, I already have a non-im O visa, does this meet the requirements for business start up or must I change that for a non-im B ?

Thanks for your response

You only need a work permit if you intend to work in the business. I discussed the same matter with the lawyer and asked if it was legal for me to do the work to set up the company in order to get the work permit and he said that strictly speaking its not, but the Labour Department won't make an issue of it. I could have had my Thai manager do all the work and control the business through letters of authorisation for specific acts, then I wouldn't need a work permit and wouldn't have needed to pay up the 2 million, but that didn't sound that safe to me so I paid up to do everything completely legally

Can't comment much on visas other than to say that setting up the company and becoming a shareholder doesn't involve your visa. You'll need a non-imm B to apply for the work permit I believe. Don't know if any other type of visa would be acceptable.

Is there a tread some where on this forum that relates to this issue with more imput. I to would like to open a business in C. M. with in the next 6 months and will be converting my non "o" visa to retirement visa however, i wish to start up a small business for my gf with a farang/thai partnership.. My capital , her effort to manage and run business. What are the pit falls of this relationship, how do you set this up to protect my capital -even if i have to walk away from it would not break the bank. My idea is to structure the business through the partnership describe above, open business, have business pay back capital and gf salary (and others) so I don't have to dig deep into my pockets for her family support. Thanks in advance - Kevin

[ScienceGuy]

Sounds like you'd be better off just getting a 50 Baht business license for her and setting up a small shop(20k).

[kcore]

Sounds like you'd be better off just getting a 50 Baht business license for her and setting up a small shop(20k).

Hello Science Guy..are u saying i can Legally get a business licensed for my gf regardless of the type of business for 50bht and a small shop for her would be around 20k bht ....I plan on opening a reasturant with a good amount of capital and teach her how to manage this type of business as this is my expertise. Also, there will be other employees and taxes and social security will have to be paid...can I still do this on a 50bht lic( sound like sole proprietor here in the states) or do I need a thai corporation.

Regards - Kcore

[TravelerEastWest]

Sounds like you'd be better off just getting a 50 Baht business license for her and setting up a small shop(20k).

Hello Science Guy..are u saying i can Legally get a business licensed for my gf regardless of the type of business for 50bht and a small shop for her would be around 20k bht ....I plan on opening a reasturant with a good amount of capital and teach her how to manage this type of business as this is my expertise. Also, there will be other employees and taxes and social security will have to be paid...can I still do this on a 50bht lic( sound like sole proprietor here in the states) or do I need a thai corporation.

Regards - Kcore

Yes, your girl friend can operate as a sole proprietor and you need to double check for her type of business but possibly she will not have to keep receipts for tax deductions as many small businesses in Thailand are allowed to simply deduct "X" percent - depends on the type of business.

Liabilty is always another issue...

[Huey]

I found Sunbelt Asia to be HORRENDOUSLY overpriced. Unfortunetly I only found this out after using them once and then checking around. I assumed I was paying for some sort of etherial "Quality" that they went on about. Anyway;

What worked for me was going to my Embassy's (USA) Website, they have a list of Thai Lawyers available that can do everything you need and at around 40-60% less than Sunbelt. I'm using one from that list now. Quality and service spot on.

[torrenova]

Is there a tread some where on this forum that relates to this issue with more imput. I to would like to open a business in C. M. with in the next 6 months and will be converting my non "o" visa to retirement visa however, i wish to start up a small business for my gf with a farang/thai partnership.. My capital , her effort to manage and run business. What are the pit falls of this relationship, how do you set this up to protect my capital -even if i have to walk away from it would not break the bank. My idea is to structure the business through the partnership describe above, open business, have business pay back capital and gf salary (and others) so I don't have to dig deep into my pockets for her family support. Thanks in advance - Kevin

If she has no business plan then most likely it will be viewed as a "hobby" business and it will not make any money. Don't want to take this off topic too much but get in touch if you want as I've opened and built up a few businesses in Thailand including dealing with your dilemma.

[kcore]

Is there a tread some where on this forum that relates to this issue with more imput. I to would like to open a business in C. M. with in the next 6 months and will be converting my non "o" visa to retirement visa however, i wish to start up a small business for my gf with a farang/thai partnership.. My capital , her effort to manage and run business. What are the pit falls of this relationship, how do you set this up to protect my capital -even if i have to walk away from it would not break the bank. My idea is to structure the business through the partnership describe above, open business, have business pay back capital and gf salary (and others) so I don't have to dig deep into my pockets for her family support. Thanks in advance - Kevin

If she has no business plan then most likely it will be viewed as a "hobby" business and it will not make any money. Don't want to take this off topic too much but get in touch if you want as I've opened and built up a few businesses in Thailand including dealing with your dilemma.

thanks torrenova - send me and pm with contact info and I will give u a call. I arrive CM in feb. and look forward to a chat and a beer or 2. kevin

[Sunbelt Asia]

Dear Deepsea,

When setting up a Thai limited company you are required to have 3 shareholders. In the majortity of instances, the company must be 51% Thai owned. However, if you are an American national you can set up a company under the Amity treaty and qualify for 100% foreign ownership. In addition, if the company is 100% export or a manufacturing business (specific categories only) then it may also qualify for 100% foreign ownership. Certain types of companies can also qualify for 100% foreign ownership through the BOI (Board of Investment).

When setting up the company it must have at least 2 million Baht of registered capital. Thai nationals are required to display an amount equal to the value of their shares in a bank account. This amount will be checked during the company set up process but is not required to be kept there for a certain period of time. However, foreigners are not required to display these funds. Therefore, you will not be required to display the full 2,000,000 Baht in a bank account upon setting up the company. Providing you have 4 Thai employees and 2,000,000 Baht of registered capital, you will be able to obtain a work permit.

For a free consultation on the company set up process, please contact Sunbelt Asia at your convenience on 02-642-0213.

Best regards,

Legal Advisor

Sunbelt Asia Co. Ltd

www.sunbeltasia.com

[email protected]

[bkkjames]

Hi guys:

Sorry if this is redundant but after 10 years here of working for others I have been kicking around the idea of starting my own.

My question is if my Thai wife is 51% owner, are the capitol and legal requirements the same for work permit etc.

Any advice on someone who has done similar is greatly appreciated.

Regards,

J.