Night of the Iguana: Old Fogies with young Thai Nubiles. Do they mix?

[xm911e3]

Hi guys, I set up a company (Co Ltd) in Thailand with a 1 mil baht capital. Here's the part I don't understand.

I paid about 25,000B at the lawyer's office to setup a company (Co Ltd) and nothing more.

It came with company's registration documents both in Thai and English version as well as the company's stamp.

Can anyone explain to me like a 7 years old what does this 1 million baht capital means? (I've the option to choose 1, 2 or more million baht as capital)

Thanks in advance.

[johnboy3739w]

from what i could gather, the capital is based upon the assets that the company owns, your lawyer will advise you what asset value is required....

[xm911e3]

What if I put 3 million baht into the company, will it still reflect as 1 million baht capital?

OR

I need to go back to the lawyer's office to increase the capital to 3 million baht? ummm....

Thanks you.

Edited March 7, 2010 by xm911e3

[opalhort]

Wait for the experts to answer your question, but here is info from my own experience:

There are two types of registered capital, "registerd" and "paid-up" capital.

You can register with 1M but have only 100K paid-up (money in the bank).

For Workpermit purposes you need a certain amount of paid-up capital.

The problems come at the end of the first fiscal year.

Example1:

You register all 1M as paid-up capital but actually put only 100K in the bank, the difference (900K) will probably show in the balance sheet as 'loan to director(s)', the Revenue Department then would want to see interest payments made by the director(s) which would be taxable income for the company.

Example2:

You register all 1M as paid-up capital but actually put 3M in the bank, the difference (2M) will probably show in the balance sheet as 'loan from director(s)'. The company is liable to pay interest to the director(s) and they have to declare the interest received on their personal income tax filing.

opalhort

[tombkk]

What if I put 3 million baht into the company, will it still reflect as 1 million baht capital?

OR

I need to go back to the lawyer's office to increase the capital to 3 million baht? ummm....

Thanks you.

I would comment if I could pronounce your name...