New Company - Current Requirements For Wp And Extension Of Stay Etc.

[torrenova]

Been looking at changes in the rules since I last set up a company and went through the WP and extension of stay palaver. So I wonder if you can set a few things straight for me please.

Assuming one WP required.

Bt2m share capital - does this all have to be paid up ?

That employees - 4 or 2 if married to a Thai ?

Salary - Bt50,000 a month upwards

Initial visa - Multiple entry non immigrant "B" visa

Extension of stay - do you really have to wait until you have 2 years accounts ? I know they were worries about new companies not having paid up share capital to cover the salary payments under the WP but if the SC was paid up, would you still have to wait 2 years ? If so, the first 15 months is ok as you are on a multiple entry B but after that, surely you will fall back to single entry B visas and have to spend 2 or 3 days every 3 months in somewhere such as Penang dragging all the paperwork etc.

Looking at perhaps 5-10m investment but really don't want WP hassles due to some accounting and administration issues.

[Mario2008]

Be advised that the rules on investment under the foreign business act are expected to change soon.

See: http://www.thaivisa.com/forum/Work-Permit-...ng-t327233.html

Any advice on this might soon be no longer valid.

[monty]

Bt2m share capital - does this all have to be paid up ?

Not sure, think it is 25% with the rest being equipment, building and intellectual property. It's also only 1 million if the WP applicant is married to a Thai national. If the company only has Thai shareholders, no check is been done on the paid up capital.

That employees - 4 or 2 if married to a Thai ?

2 employees if married to a Thai.

Salary - Bt50,000 a month upwards

The 50,000 is a requirement for the 1 year extension, not the WP. For the WP it depends on job description. On average they want to see 30,000 Baht or more for managerial functions. If married, much better to get your extension based on marriage, in this scenario you'd want to have a 40,000 Baht salary to satisfy the marriage extension requirement.

Initial visa - Multiple entry non immigrant "B" visa

Yup, if possible. Hard to get in neighboring countries, easy at your home country.

Extension of stay - do you really have to wait until you have 2 years accounts ? I know they were worries about new companies not having paid up share capital to cover the salary payments under the WP but if the SC was paid up, would you still have to wait 2 years ? If so, the first 15 months is ok as you are on a multiple entry B but after that, surely you will fall back to single entry B visas and have to spend 2 or 3 days every 3 months in somewhere such as Penang dragging all the paperwork etc.

2 years required. As said above, if married, much easier to go for extension based on that. If not, yes, some visa running has to be done.

[torrenova]

Cheers for that Monty.

Just looking back at some of my notes from "before" and regarding the share capital. I thought one of the issues in having it paid up or perhaps Bt1m paid up was to actually show that the company had the cash to pay for the salary and WP of the foreigner and the requisite Thai employees and their social contributions. Was I mistaken or has that all gone out of the window ?

Utter madness on this 2 year accounts rubbish. Quite what they think they are achieving on making western investors having to spend perhaps 12 working days a year to travel abroad to prove nothing to Thai officials except that they have the money to waste on visa runs is unbelievable !

I take your advice on extension of stay based upon other criteria and for me, that is not an issue but for others, who cannot avail themselves of another visa extension dispensation, this is bad news.

[Sunbelt Asia]

Dear Torrenova,

If you require one work permit from your Thai limited company then you must employ 4 Thai nationals, regardless of whether or not you are married to a Thai national. If you are from Europe the minimum salary requirement is 50,000 Baht per month. Therefore as a European, you will be required to pay personal income tax on a salary of at least 50,000 Baht. This will equate to approximately 3,750 Baht in taxes per month, including social fund contributions. In Thailand, the first 150,000 Baht of earnings is tax free and earnings in excess of this amount will be taxed on a rate dependant upon your total annual earnings. In regards to the 2,000,000 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.

In order to obtain a work permit you must first have a Non-Immigrant B visa. This can be obtained using your company documentation (company affadavit, shareholders list etc.) as well as a sponsor letter from your company.

For a free consultation 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