Does The 'thai Consultancy' Business Option Exist?

[simon43]

I seem to recall a few years ago that it was possible for a non-Thai to register a limited liability company as a 'small consultancy', where the requirements for number of employees was less stringent that for the usual form of Ltd company.

Then I also seem to recall that this useful registration option was withdrawn the the authorities

I'm trying to figure out the best route forward for myself. I currently work full-time for a BOI company, and have a Work Permit. But I have many offers of sub-contracted work from overseas, and my employer is happy for me to work for them on a sub-contracted basis, allowing me to provide my software services to the BOI company, other companies in Thailand and those overseas companies.

It's important for me to work legally in Thailand - I may apply for PR in the future and would like to get several years of employment/paying tax under my belt.

If I register a Thai company, am I required to employ 4 Thai nationals in order to obtain a WP?. I have a non-imm O visa extension based on having a Thai son, so I do not intend to 'tie' my visa extension in with my employment status.

It also seems that in order to register a Thai ltd company, I must open a company office AND work from that location. That goes totally against the benefits of living in Thailand! Since my work is all based online, I can physically work from home. But can I 'legally' work like that?

I'm just trying to find the best legal solution for my own circumstances, where I have a WP, and am meeting the PR application criteria re paying tax etc.

Thanks for any advice

Simon

[Mercury]

I think one issue was landlords not wanting to let you register a company at their premises, presumably because they were not declaring your rent. I know some people own houses and they have corporate plaques outside and seemingly work from home. Your WP would presumably be linked to a location or business though perhaps that could be adapted to cover more than one location.

The costs of running your own business are going to be substantial and for little benefit. You do not need Thai employees and they will have to be real, not merely fictitious names which you pay taxes for. You do not really need an office nor any of the company requirements.

I see your desire to open the option to PR but what real benefit is it ? You have a child, you can get a visa for many years on that basis and later in life you can be retired. I do not see too many or essential benefits in PR.

I would continue to work and work for these other companies and people being paid into an account outside Thailand and just forget tax etc. If you are hel_l bent on paying tax on it then that is fine, but it might be easier to run it through your employers company as he already has the costs to bear in any case. If that does not appeal, then you are looking at setting up on your own and negotiating contracts with your employer at substantially higher cost to him as your costs will have increased. You could then bring in the other income streams into your company. I don't see that being viable to be honest unless the sums are large and ongoing. I think you would have to take a loss on your employment income (it not giving the same net after the new company costs) and then swallow hundreds of thousands of costs each year just so you can pay for PR, which you could presumably do anyway based solely on your WP salary.

Just another thought is whether you could officially employ these extra workers but they could be contracted to your employer ?

[simon43]

Hi Mercury, yes, the attraction of PR diminishes by the second, especially since those who applied 4 years ago are still waiting for their approvals

It's true that I have no real issues in extending my non-imm O visa until my son is aged 21 years - unless the visa goalposts are moved again.

It would seem that the best thing that I can be doing - if anyone asks - is to be 'answering emails' on my laptop...

Simon

[Mercury]

Hi Mercury, yes, the attraction of PR diminishes by the second, especially since those who applied 4 years ago are still waiting for their approvals

It's true that I have no real issues in extending my non-imm O visa until my son is aged 21 years - unless the visa goalposts are moved again.

It would seem that the best thing that I can be doing - if anyone asks - is to be 'answering emails' on my laptop...

Simon

I can see the advantage to PR if you are set on obtaining Thai citizenship and were that an easy task, I may well have considered it myself but like you, I am able to obtain extensions on the basis of my child. However, as you rightly point out, this does end, probably before you or I intend to depart this earth ! I note also that the retirement amount one needed some years ago was as low as 100,000 baht and is now 800,000 baht. People on the 100k dispensation are grandfathered on that amount and also those on the incremental amounts. I will move to the retirement option when I am 50 to benefit from what I hope will be future grandfathering, should they raise the bar further.

In my business activities in decades past I also thought about making the jump from employed to being my own boss but only did so when a job ended. I felt the risk was too great to give up the security of a position to go it alone on more than one occasion. I will admit I admire your desire to prosper but I think the costs associated with incorporation in your case vastly outweigh the benefits in the short term and even in the medium to long term, I am not sure if they are worth it. As you have the ability to do other work and are covered by a current work permit, I am not sure anyone will ever come looking. Surely there are far more people working without a work permit. In fact, I cannot remember the last time I heard about someone being caught for working outside their work permit. Being paid to an account outside Thailand would leave little or no trail and I suspect you would never suffer any inconvenience.

Finally, as you mention, just when would an application for PR be granted ?

[Irishrogue]

QUOTE (simon43 @ 2010-05-30 04:50:08) Hi Mercury, yes, the attraction of PR diminishes by the second, especially since those who applied 4 years ago are still waiting for their approvals

It's true that I have no real issues in extending my non-imm O visa until my son is aged 21 years - unless the visa goalposts are moved again.

It would seem that the best thing that I can be doing - if anyone asks - is to be 'answering emails' on my laptop...

Simon

I can see the advantage to PR if you are set on obtaining Thai citizenship and were that an easy task, I may well have considered it myself but like you, I am able to obtain extensions on the basis of my child. However, as you rightly point out, this does end, probably before you or I intend to depart this earth ! I note also that the retirement amount one needed some years ago was as low as 100,000 baht and is now 800,000 baht. People on the 100k dispensation are grandfathered on that amount and also those on the incremental amounts. I will move to the retirement option when I am 50 to benefit from what I hope will be future grandfathering, should they raise the bar further.

I have been in Thailand for about 8 years and decided to establish my own Engineering Consultancy business 5 years ago and managed to keep it going until last year. When it was set up the Paid up Registered Capitol was only 25% of the 2 million but today it is the full amount. I also had to have 4 employees and was required to show photos and company location and office facilities to the relevent departments who subsequently came to visit "unannounced" the government then imposed a 1 million share holder equity requirement and with falling revenue it bacame untenable to keep the operation going. I was in the fortunate position to have a plan B which now sustains my legal status in Thailand. I also have 2 children and by the time they are of the age of maturity I will undoubtedly have left this vale of tears. I do though wish you every success in your endeavours.

In my business activities in decades past I also thought about making the jump from employed to being my own boss but only did so when a job ended. I felt the risk was too great to give up the security of a position to go it alone on more than one occasion. I will admit I admire your desire to prosper but I think the costs associated with incorporation in your case vastly outweigh the benefits in the short term and even in the medium to long term, I am not sure if they are worth it. As you have the ability to do other work and are covered by a current work permit, I am not sure anyone will ever come looking. Surely there are far more people working without a work permit. In fact, I cannot remember the last time I heard about someone being caught for working outside their work permit. Being paid to an account outside Thailand would leave little or no trail and I suspect you would never suffer any inconvenience.

Finally, as you mention, just when would an application for PR be granted ?

[Pushit]

Hi Mercury, yes, the attraction of PR diminishes by the second, especially since those who applied 4 years ago are still waiting for their approvals <img src="http://static.thaivisa.com/forum/style_emoticons/<#EMO_DIR#>/sad.gif" style="vertical-align:middle" emoid="" border="0" alt="sad.gif" />

It's true that I have no real issues in extending my non-imm O visa until my son is aged 21 years - unless the visa goalposts are moved again.

It would seem that the best thing that I can be doing - if anyone asks - is to be 'answering emails' on my laptop...

Simon

Simon, What happens when your son reaches 21 years old?

[simon43]

Simon, What happens when your son reaches 21 years old?

Party?

Seriously, AFAIK, the option for a visa extension based on having a Thai child is no longer available. But I will be almost 70 years old at that point and obviously the retirement visa extension is a valid option. I suspect that I will be extending my visa based on working, since I have no intention of tending the garden or - heaven forbid - playing golf

Simon