Work Permit For Sole Proprietor

[Nashboy]

I've made inquiries into gaining employment as a dive instructor in Thailand. I've had several email communications with one of the more popular dive shops in Pattaya and discussed with the owner about the generalities of securing a work permit.

He said that one of the ways it can be done is for me to form my own company and be "self-employed" but paid through the dive shop.

I've seen this mentioned in several places and legal websites (including Thai Visa - http://thaivisa.com/314.0.htm ), however they never explain the details - opting instead to go into great detail only about how to set up a full-blown enterprise. I can't imagine that to form a company with just myself as the sole employee would require the large capitalization costs, office rental, etc. If so, it obviously wouldn't be financially feasible.

Anyone have any insight on this?

[Indo-Siam]

Thailand does indeed impose a number of burdens on any foreigner wishing to work in Thailand. Such a foreigner must have a work permit. If foreigner is not married to a Thai, then employing company must have 2,000,000 baht REGISTERED capital to sponsor each work permit (there is a different policy applicable to schools, for qualified teachers).

More importantly, in order to apply for a work permit, the employer must be registered for VAT. This is a latent challenge - because to register for VAT, a company must indicate its expectation that it will earn an least 1,200,000 baht in revenue during the next 12 months.

Most people evidently fail to undertstand what "sole proprietor" means. This is not a description of a one-man company, operating alone. This is a technical term applying to a form of incorporation - a sole proprietorship may have dozens, or even hundreds of employees. It just means that the entity is owned by one individual, who assumes sole personal liability for any claims against the company, and whose entire "corporate" income is taxed at his own personal income tax rate.

All Thai companies must maintain a legally sufficient registered business address - this is enforced by Revenue Department - and even a SP or LP must maintain a legally sufficient address, in order to receive tax registrations. You must also maintain monthly bookeeping and associated submissions.

Thailand dose not care if any farangs survive in business here. You can "run the race" against Thai dive instructors - no problem. But - as you depart the starting line in the race, you must be carrying on your back:

A landord

A banker

An accountant

The tax department

The work permit office

Immigration office

Four Thai employees (if you want to stay longer than 90 days at a time)

If - 10 meters from the finish line, you collapse exhausted, and die - Thailand could care less. You don't vote. The 'passengers' listed above merely detach themselves from your emaciated corpse, dust themselves off, and go looking for another "mount".

If a foreigner wants to run a business here, he must understand that he will be required to feed a bunch of hungry Thai mouths - and absolutely no one cares if this is a heavy burden, or onerous to that foreigner.

'Like the Drill Sergeant said: Recruit, drop down and give me push-ups until I get tired.......

Cheers!

Steve

Indo-Siam

[~G~]

Great post by Steve. No "quick and easy" procedure for a foreigner wishing to start a business here, including the tinyest kinds of businesses.

If you try to cut corners in the beginning you will have to answer questions later down the road. Take into consideration that you will be inspected again and again - on every renewal/extension of visa and WP, yearly audit, etc.