Small Business W/ Wife As Legal Owner/proxy?

[TheItaliann]

I have a few small business ideas that I would like to implement more as a hobby than anything. Do the authorities not care as long as the business is not in your name? Being out and about in Thailand I will often see farang working in a business that I believe (through word of mouth) is not legal for farang and even if it was, to get a work permit for said business there is a requirement of X number of employees and other legal paper work. Example: Running a clothing store out of MBK.

[TheItaliann]

To clarify, I am not interested in working full time in said potential businesses, but would rather be coming and going, etc, as it would be mostly a hobby (unless very successful in-which case i would want to expand). it would also not be the wife's full time job. thx.

Edited May 18, 2010 by TheItaliann

[Scottish Thailander]

To clarify, I am not interested in working full time in said potential businesses, but would rather be coming and going, etc, as it would be mostly a hobby (unless very successful in-which case i would want to expand). it would also not be the wife's full time job. thx.

To clarify; Work of any kind, including volunteer work, is illegal without the appropriate paperwork. I suggest you chose different types of "hobbies" that are not linked to businesses, or work, or making money, in any way, shape, or form.

Stick to the common expat hobbies involving food, drink, and women. Or try taking up a sport if the latter are not the kind of exercise you like (or your mrs lets you do).

.

[Sunbelt Asia]

In the Kingdom of Thailand, the law specifically states that any foreigner who is working in the country whether on a contractual basis, part-time or full-time must obtain a work permit. This applies whether it's a casual, even "at home" business or in an office/storefront.

Note that this applies even if you have set up a property company with majority (or total) Thai ownership. Even if you are not named as a director in the company, if you perform services on that company's behalf and get caught, the Immigration will view this as a fraudulent act and may result to severe consequences.

You mentioned setting up a clothing shop in MBK as an example. If you gave the money to your wife to set a company and were not a director nor did you work in the shop or in any capacity for the company then there is no apparent problem. It would be "her" business and as a married couple you and she can use that income to support the two of you.

Our expert Legal Advisors can provide you a more detailed information about visa requirements, work permit and company legal issues.

www.sunbeltasia.com

26th Floor Fortune Town BR, 1 Ratchadapisek Rd, 10400 Bangkok

Tel: 02-642-0213 Fax: 02-641-1995

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[MrE]

Being involved in any form of business is considered employment for which you will need a work permit. This goes as far as guest musicians getting up and jamming with a band. If you were sitting in your wife's shop and said hello to a customer walking in the door, that can be considered employment and would be illegal. It can be very complicated and difficult to do business here. Most small businesses, about 80%, fail in the first year, especially those owned all or part by farangs. But even many Thai owned and run businesses fail because the owners really have no concept of sound business practices and there is massive competition for most kinds of shops, restaurants, hotels and bars. Be sure you can afford to lose all of your investment before you start and that you have enough cash on hand to run the business for one year with zero incoming revenues.