Crossy Posted April 20, 2005 Share Posted April 20, 2005 OK People. A friend of mine (not me) is a freelance consultant engineer for rail systems communication. He has been working all over Asia for the last 10+ years and is now in BKK. Most of the jobs are short term design work, many with companies that do not want / can not provide work permits for the 2 or 3 week terms. Is it possible to set up a company himself to provide WP? Obviously he needs to avoid paying tax when not actually working. What are the standing outgoings of such an operation? Hopefully I've phrased this right, any and all suggestions are welcome. DC Link to comment Share on other sites More sharing options...
~G~ Posted April 20, 2005 Share Posted April 20, 2005 OK People.A friend of mine (not me) is a freelance consultant engineer for rail systems communication. He has been working all over Asia for the last 10+ years and is now in BKK. Most of the jobs are short term design work, many with companies that do not want / can not provide work permits for the 2 or 3 week terms. Is it possible to set up a company himself to provide WP? Obviously he needs to avoid paying tax when not actually working. What are the standing outgoings of such an operation? Hopefully I've phrased this right, any and all suggestions are welcome. DC <{POST_SNAPBACK}> He can set up a company, get a WP and work as a private contractor. Actually it sounds to me like a good solution for his case. Taxes will be paid like any other Thai company does it - witholding and vat. For a more detailed explanation I suggest you ask Indo-Siam, one of the sponsors of this forum, who supplies these services. Link to comment Share on other sites More sharing options...
Indo-Siam Posted April 20, 2005 Share Posted April 20, 2005 Yes, it is quite common for a foreigner to set up a consulting company to provide him with a legal basis for remaining in Thailand long-term, with minimal hassle. In order to sponsor one work permit for a foreigner who is not married to a Thai, a company must be capitalized at 2,000,000 baht. Monthly sustainment costs to keep a company going are: 1) Cost of maintaining a legally-sufficient registered buisness address. 2) Cost of monthly bookkeeping, and accomplishment of required monthly regulatory reports/submissions to Thgai Revenue Department. 3) Cost of paying monthly personal income tax withholding on the salary specified in your work permit application. One note - once you get a work permit (presumably as Managing Director of the company), you are obliged to pay personal incomre tax withholding every month, whether your company is actually pursuing any activity or not. If you (or any other interested "thread lurkers") send me a conventional e-mail message to which I can reply with attachments, I will send you some information about process, costs, and considerations associated with launching a Thai Private Co. Ltd. Good luck! Steve Sykes Managing Director Indo-Siam Group Bangkok [email protected] www.thaistartup.com Link to comment Share on other sites More sharing options...
Crossy Posted April 20, 2005 Author Share Posted April 20, 2005 Yes, it is quite common for a foreigner to set up a consulting company to provide him with a legal basis for remaining in Thailand long-term, with minimal hassle.In order to sponsor one work permit for a foreigner who is not married to a Thai, a company must be capitalized at 2,000,000 baht. Monthly sustainment costs to keep a company going are: 1) Cost of maintaining a legally-sufficient registered buisness address. 2) Cost of monthly bookkeeping, and accomplishment of required monthly regulatory reports/submissions to Thgai Revenue Department. 3) Cost of paying monthly personal income tax withholding on the salary specified in your work permit application. One note - once you get a work permit (presumably as Managing Director of the company), you are obliged to pay personal incomre tax withholding every month, whether your company is actually pursuing any activity or not. If you (or any other interested "thread lurkers") send me a conventional e-mail message to which I can reply with attachments, I will send you some information about process, costs, and considerations associated with launching a Thai Private Co. Ltd. Good luck! Steve Sykes Managing Director Indo-Siam Group Bangkok [email protected] www.thaistartup.com Thanks Steve, I'll suggest that he mails you direct. DC Link to comment Share on other sites More sharing options...
donx Posted April 20, 2005 Share Posted April 20, 2005 Indo-Siam, You say a company must be capitalized at 2,000,000 baht in order to sponsor a work permit for a foreigner who is not married to a Thai. What is required if the foreigner IS married to a Thai? Link to comment Share on other sites More sharing options...
Indo-Siam Posted April 20, 2005 Share Posted April 20, 2005 If person sponsored for a work permit is married to a Thai, only 1,000,000 baht registered capital is required in order for company to sponsor that work permit. Cheers! Steve Indo-Siam Link to comment Share on other sites More sharing options...
aqua4 Posted April 20, 2005 Share Posted April 20, 2005 Dont forget you have to pay VAT. Link to comment Share on other sites More sharing options...
Indo-Siam Posted April 21, 2005 Share Posted April 21, 2005 It is correct that company must have accomplished VAT registration in order to sponsor a work permit. Cheers! Steve Indo-Siam Link to comment Share on other sites More sharing options...
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