So How Much Would It Cost To Set Up A Company?

[gravion]

i've seen http://www.thaivisa.com/314.0.html

but still not really getting the reality of the costs.

mind someone whos already set up their company reveal how much it costed them?

im assuming u have to hire at least 4 thai nationals, pay monethly company tax, auditor once a year?

also land line is essential?

Edited January 6, 2010 by gravion

[richardt1808]

Hi,

The setup cost for a small company would be around 15K for a lawyer or agent. There is an actual fee for the registration, which is around 5-10K as I remember. You don't pay company tax on a monthly basis, but rather, this is paid at the end of the year based on your audited income statement; or, if your company is of a significant size, the revenue department may ask you to estimate turnover and pay part annual tax based on this estimate. Of course you pay VAT on all your purchases and if your turnover is above the VAT ceiling, you will have to register for VAT and charge it on each invoice and this VAT must then be paid monthly, so if you are offering a long credit term to clients, be aware that your VAT payments may fall due before you get paid.

For a small company you may be able to do monthly book-keeping yourself - in which case you would just pay an accountant to do your annual financial statements for you; cost for this would be around 10-20K. Then you would need to pay a registered auditor to audit them, again another 10-20K. If the business has moderate turn-over, you would probably employ a financial person or accounting firm, cost around 6-10K per month, but you would get your annual statement done as part of that fee.

For the actual business registration, you need to nominate a fixed address and provide proof of this by means of a copy of the lease agreement. I'm not sure that they require a landline number. A limited partnership requires at least 7 shareholders in the business, one of whom is nominated the juristic person who has authority to sign all documents on the company's behalf. For a Thai company with no foreign employees, a minimum registered capital of 300K is required when setting up the business of which at least 30K must be paid up at the time of registration.

If your company intends to employ a foreigner, maybe yourself, then it is a bit more complicated.

For this, the company needs to have registered capital of at least 2 million Baht; there will need to be at least 4 Thai's employed and you will need to justify the employment of the foreigner based on their skills and the requirements of the job. For a new or small company they are very picky about approvals and will probably initially grant a 3 month work permit which you will then have to go and renew again with all the supporting documents and photos etc until they are happy with your set-up. There is also a scale of minimum salary for your foreign employee, depending on where they are from - if you want more info on the actual work permit process, do a search of this forum for more details.

Unless you know a Thai person who has done business registration before, you will need to use a lawyer or agent and there are many capable persons advertising services here or similar places who will be able to help you with more details and information.

Best of luck

Edited January 6, 2010 by richardt1808

[pieter73]

Hi,

We set up a company around 2 years ago and used a private lawyer to handle the registration. The cost for the lawyer was around 15K and the registration fee was around 10K if I remember correctly.

Every registered company needs to submit and audited financial statement at the end of each year. If you have a high number of transactions, you may need an accountant or book-keeper to do monthly records for you. Our monthly accounting fee is around 8,000 and the accountant does the end of the year statement for free. But we are now a fairly large company, so for a small company with low-turn-over you may not require an accountant to do this every month, in which case you are looking at around 10-15K to prepare the end of the year financial statement. Then you need to have it audited by a registered auditor which will cost you 10-20K, depending on the size of the business and how well you have kept your records. If you have an annual turnover of more than 180K you will need to register for VAT payments (the amount may be different now) but VAT reports will definitely require someone with accounting background and dont forget that you are required to pay social security for employees.

The above would cover a Thai company with no work permits.

If your company intends to employ a foreigner, maybe yourself, then it is a bit more complicated.

First, the company needs to have registered capital of at least 2 million Baht; there will need to be at least 4 Thai's employed and you will need to justify the employment of the foreigner based on their skills and the requirements of the job. For a new or small company they are very picky about approvals and will probably initially grant a 3 month work permit which you will then have to go and renew again with all the supporting documents and photos etc until they are happy with your set-up. There is also a scale of minimum salary for your foreign employee, depending on where they are from - if you want more info on the actual work permit process, do a search of this forum for more details.

Best of luck

The 2 million is for a co ltd.

If you are married with a Thai and the company is co-owned by her or him then the amount of employes can be less.

There are also other contructions.

If you are already in Thailand you can go to the Chamber of commerce they have a good brochure about this things in English.

Pieter

[Abrak]

Op,

You havent really given the exact reason you want to set up this Thai company

There is a big difference between owning a Thai Company and a Thai Company that actually employs a farang on a work permit.

[gravion]

because i cant fget jobs... but im very hesitant to start my company as its complex and high cost, and imo most likely fail. just gaining ideas etc. if i keep on seeking employment, i willl prolly end up living up on my parents savings... they r retired here

[Steps]

because i cant fget jobs... but im very hesitant to start my company as its complex and high cost, and imo most likely fail. just gaining ideas etc. if i keep on seeking employment, i willl prolly end up living up on my parents savings... they r retired here

Well that reply's just completely shut down this topic!! Just so you know you never wasted any time with that lengthy reply Richardt1808, I thought it was spot on and very usefull. Pat on the back for a helping hand son

[gravion]

as far i can see... starting ur own company = money drainer...

every month gotta pay 4 thai salaries, power bill, tax, rent.

as far i can see... some ppl r starting companies in order to remain in thailand and keeping them occupied i guess. but what ever savings/earnings u've made back home, iz not gonna last forever i assume even with the cheap cost of living here...

also thanx for the detailed reply richard... it made me convince more not to start me own

[thomasjojo]

This topic was very useful for me. Thanks ;-) (no joke)

Thanks Richard.

[NADTATIDA1]

because i cant fget jobs... but im very hesitant to start my company as its complex and high cost, and imo most likely fail. just gaining ideas etc. if i keep on seeking employment, i willl prolly end up living up on my parents savings... they r retired here

You could try teaching English.

[monkfish]

Closing the company will also cost 20-30k

[Sunbelt Asia]

Dear Gravion,

If you intend to obtain a work permit through your company then you must employ at least 4 Thai nationals. There are also certain accounting requirements that must be fulfilled. Firstly, you must submit VAT on a monthly basis, even if the company is not yet trading and the figure is 0, as well as monthly witholding tax. On an annual basis the company must carry out an audit and beginning in the second year after formation, a half year report must also be completed. If you obtain a work permit from your company then as a foreigner you must pay personal income tax. The minimum salary for a foreginer is dependant upon your nationality. For example, the minimum salary requirement for a British national is 50,000 Baht per month and personal income tax must be paid on this salary. Corporate tax in Thailand is based upon the annual net profits of the company. For a company with an annual net profit not exceeding 1,000,000 Baht, the corporate tax rate is 20%.

For more information about our company set up fees, please contact Sunbelt Asia on 02-642-0213.

Best regards,

Foreign Business Advisor

Sunbelt Asia Co. Ltd

www.sunbeltasia.com

[email protected]

Edited February 12, 2010 by Sunbelt Asia

[Vaporiser]

What if the foreigner is supervising on a part-time 50% basis? One month in Thailand and the next month working again in the UK? Can the foreigner become a 33% shareholder (2 Thai shareholders) later when the company is already making some money and not at the beginning at the building up time. Building time can be about 9 to 12 months! Interested to hear your view!

Kind regards!

Dear Gravion,

If you intend to obtain a work permit through your company then you must employ at least 4 Thai nationals. There are also certain accounting requirements that must be fulfilled. Firstly, you must submit VAT on a monthly basis, even if the company is not yet trading and the figure is 0, as well as monthly witholding tax. On an annual basis the company must carry out an audit and beginning in the second year after formation, a half year report must also be completed. If you obtain a work permit from your company then as a foreigner you must pay personal income tax. The minimum salary for a foreginer is dependant upon your nationality. For example, the minimum salary requirement for a British national is 50,000 Baht per month and personal income tax must be paid on this salary. Corporate tax in Thailand is based upon the annual net profits of the company. For a company with an annual net profit not exceeding 1,000,000 Baht, the corporate tax rate is 20%.

For more information about our company set up fees, please contact Sunbelt Asia on 02-642-0213.

Best regards,

Foreign Business Advisor

Sunbelt Asia Co. Ltd

www.sunbeltasia.com

[email protected]