Owning A Company With Retirement Visa

[paulblund]

Can anyone give me some clarification on the position with owning a company whilst living in Thailand under a retirement visa. My (non-Thai) wife and I are looking at moving to Thailand with retirement visas, which we expect to get without too many problems. We already have a house there, which we own through a Thai limited company, which we control. We are not looking to work, so we don't need work permits, but we are thinking about buying a business, which we would look to draw dividends from. We would probably use our company to buy an existing business, and then re-structure it. Is this possible ?

[InterestedObserver]

How are you going to actively manage the businesses, while living in Thailand, without a work permit. If you are the Managing Director, or similar function, you should have a work permit.

[richardt1808]

You are of course aware that foreign shareholdings in Thai companies is limited by law to 49%....

As such, how is it that you already 'own' a business ? If you control any of the remaining shares in order to circumvent the 49%, you are breaking the FBA (law) and you stand to lose the house.

You would do well to do some searches on this forum, using the search function above, to better acquaint yourself on the Foreign Business Act and requirements for setting up a Thai company. In short, you wont be owning or restructuing any Thai company anytime soon; at least not without a Thai business partner who you can trust, and a work permit.

[paulblund]

You are of course aware that foreign shareholdings in Thai companies is limited by law to 49%....

As such, how is it that you already 'own' a business ? If you control any of the remaining shares in order to circumvent the 49%, you are breaking the FBA (law) and you stand to lose the house.

You would do well to do some searches on this forum, using the search function above, to better acquaint yourself on the Foreign Business Act and requirements for setting up a Thai company. In short, you wont be owning or restructuing any Thai company anytime soon; at least not without a Thai business partner who you can trust, and a work permit.

The company is set up in accordance with Thai law, with Thai shareholders and directors. I misleadingly used the word "own" rather than "control", which is what we have through the share structure.

In any case, what you are saying is that I won't be able to do anything without a work permit ?

[Maestro]

Being a shareholder, ie owning part of a company, does not require a work permit.

Working in a company, regardless whether you own shares in that company or not, requires a work permit.

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Maestro

[Sunny Valentine]

Makes me wonder if dividends earned from the shares would count towards the income needed to be shown for extension of retirement Visas.

I.e., if I were to own shares of a company that pays me 800000 Bt. annual dividends, would that be sufficient for extension of my O Visa based on retirement?

[lopburi3]

It would depend on your Embassy accepting it (and perhaps you paying the tax on it).

[Sunny Valentine]

It would depend on your Embassy accepting it (and perhaps you paying the tax on it).

Well, I suppose these were taxable in Thailand. So, what hasmy Embassy to do with it? This would be income in Thailand.

[lopburi3]

I did not see where you said this was Thai source accounts - in that case I suspect you would have to prove by Thai tax receipts.

[TravelerEastWest]

You are of course aware that foreign shareholdings in Thai companies is limited by law to 49%....

As such, how is it that you already 'own' a business ? If you control any of the remaining shares in order to circumvent the 49%, you are breaking the FBA (law) and you stand to lose the house.

You would do well to do some searches on this forum, using the search function above, to better acquaint yourself on the Foreign Business Act and requirements for setting up a Thai company. In short, you wont be owning or restructuing any Thai company anytime soon; at least not without a Thai business partner who you can trust, and a work permit.

I am confused - I thought that Americans could still own a business 100% with only a few types of limitations.

[InterestedObserver]

I am confused - I thought that Americans could still own a business 100% with only a few types of limitations.

That would be a company set up under the Treaty of Amity between the US and Thailand, not a Thai company set up under the Foreign Business Act (FBA).

[featography]

It would depend on your Embassy accepting it (and perhaps you paying the tax on it).

Well, I suppose these were taxable in Thailand. So, what hasmy Embassy to do with it? This would be income in Thailand.

This could open a can of worms. Do you and your wife seperately have retirement incomes from home country, equalling 880,000B each per year? If so, there is no reason that I can imagine, to involve your embassy in Thai income. If you both do not have required retirement incomes, my question would be, would your embassy accept Thai income made as a retirement income, thus warranting a retirement visa? Thailand might have a problem with that and require you to change visas.

[lopburi3]

Only one person of a married couple requires financial qualifications for a retirement extension of stay - the other can obtain as dependent.

[khaowong1]

I think you are going to find that the work laws in Thailand are beyond anything you ever heard of or can imagine. Do you remember the Tsunami of 2004, many Americans and other foreign people went down to Phuket to help out the victims and were not allowed to because the Thai government said that you needed a work permit to help out. Volunteers, mind you. Not drawing any money, just helping. I would suggest you find another country to retire, one with a little less draconian laws about foreignors working and living in their countries. Thailand is not foreignor friendly.

[lopburi3]

I do not recall anyone being prevented helping during that time (it was questioned by one person and quickly dropped); and most countries have some such laws. The fact is Thailand does not often follow a strict interpretation of any law.

[Arkady]

The OP has not really given enough information to make informed comment. However, here are a couple of broad brush ideas.

1. Don't mix up the company that owns land with the other business. The Land Code allows an extremely broad interpretation of the concept of Thai nominees violating restrictions on foreign land ownership on behalf of foreigners and guidelines issued by the Interior Ministry on this issue been significantly tightened up since 2006, so that most corporate structures used by foreign individuals to buy land before then would not work today. Whatever you may believe, based on advice provided by various interested parties, your land ownership through a corporate structure may not stand up to a thorough criminal investigation, if some one wanted you or your nominees nailed for whatever reason. So why invest more money in a related structure? Better to keep the land owning structure segregated from the new investment.

2. If you are making a significant investment in an income producing company, you will probably do better to plan on getting a work permit, so you can legally be a director and authorized signatory of the company. Why bother going to the trouble of a retirement visa, if you can easily get a work permit, which is useful for so many things in Thailand.

[PoorSucker]

Here's some reading for you.

Ministry of Foreign Affairs Business Handbook