Set Up Business In Thailand

[jedda]

We have Australian company for golf tours to Thailand. At first we were informed in Australia that a company in Australia could operate in Thailand with appropriate visa and work permit.

After arriving in Thailand, I was informed that we cannot operate here unless we set up a Thai company with a Thai national as a majority shareholder ie say 51% with us being minor shareholders.

Can you please briefly explain the rules regarding operating a business in Thailand. Specifically do we have to lodge funds to set up the company here or is it similar to Australia where you can have one million shares bit only lodge $1 to operate. Also do we have to lodge funds to gain work permits etc.

Thank you

[SunbeltAsiaExpert]

For an Australian company to operate a golf-tour business in Thailand you are required incorporate in Thailand and comply with Thai laws.

With the Free Trade Agreement between Thailand and Australia, Australian citizens can incorporate in such a way as to allow Australian shareholder(s) to hold up to 60 percent of the total equity in the Thai company.

However, if you intend to perform tourism-related business, you will also have to meet the requirements of the Bangkok Tourist Business and Guide Registration Office. You'll have to obtain a license from the Tourism Authority of Thailand through that office.

In order to get that license, no more than 49 percent of the shares can be owned by non-Thais and the authorized director of the company (the applicant) must also be a Thai citizen.

In other words, even though you may be able to form the company with Australians owning 60 percent of the shares, you could only have 49 percent of the shares if you plan to operate a company that needs a TAT license.

As for the work permit issue, the Labor Department officer will investigate whether all the shares in the company are backed up by capital. This declaration is signed by the the managing director and the shares can be funded by cash in the bank or personal assets.

Their are always solutions to any roadblock so feel free to contact our firm for other possible ways your company can operate in Thailand.

www.sunbeltlegaladvisors.com