Vat Registration Advice

[psdone]

Hi,

My wife, Thai friend, and I are about to make the big plunge and start a Thai LLC. We will have to get a VAT license for me to get a work permit. I have a simple question:

Can we use our Kankahar condo (my wife OWNS it) as the company address ?

We do not have a landlord, and everything I read so far is about landlord and lease requirements for the VAT. My big fear is registering the LLC, and then having the VAT license rejected. This would be a problem because I understand I have 60 days from the day I register the business to get a work permit, but I won't be able to get the work permit if the VAT is rejected. So I do not want to start the wheel rolling until I know I can get the VAT license with our condo address ...

Thanks,

Phil

[opalhort]

If the Ministry of Commerce accepts your registration at the condo address then the Revenue Department will also register you for tax purposes including VAT.

There are many companies here having a condo registered as a business.

opalhort

[psdone]

No, a Thai Co.,Ltd. can not be registered to a condo or house address, this, from our lawyer. Best to contact yours to confirm.

Good luck!

Yup,

I feared this. Some some yes, some say no. We called the gov. office in our district, and they gave my friend a lot of sh*tty attitude, but they said they would do it. I think I will be OK if I let the Thais handle it, and some lunch money will probably be required ...

Thanks,

Phil

[opalhort]

Well, our Co., Ltd. is registered at our private home in BKK. It is just a simple house with two office rooms downstairs.

We also have dealings with two other Co.Ltd.s both of which are registered in condominiums in the inner city.

What is needed for registration is the blue housregistration book of the owner.

opalhort

[opalhort]

The easiest way to find out is to visit the Ministry of Commerce and ask!

If in BKK info about how to get there is

Here

You will need a Thai person who can understand the basic things about how to do things based on info provided.

They are very helpful and even help filling in forms for you. You do not need a lawyer! DIY!

All you need is a Thai person to help you. The wife, since she is the owner of the condo would be that person.

opalhort

[Sunbelt Asia]

Regarding your question: "Can we use our Kankahar condo (my wife OWNS it) as the company address ?"

Not only you would have to obtain consent from the owner of the unit, but you are also required to get your clearance and permission from the Condominium Juristic Management Office. As each condominium project has their own building rules and regulations. Some may only permit the condominium unit owners to utilize their unit for residential purposes. And they would prohibit the owner from using as an office and/or commercial address.

Some of the reasons that the condominium juristic management would refuse you to have your company using the condo are the wear and tear of the elevator usage, limited parking space (from your business visitors), and having of the company sign posted up on your front door may ruin their global code of appearance.

Let us also take this opportunity to clarify the misunderstanding of the responsibility to register the company’s VAT within 60 days.

In fact once the company has been registered with the Department of Business Development (i.e. Ministry of Commerce), the established company has the responsibility to apply for a TAX ID Number within 60 days after the company has been established. Whereas the VAT (Value Added Tax) would be require if the company’s gross sales reaches 1.8 million baht. On the other case even if the company is not generating over 1.8 million baht in gross sales, but the company intends to apply for a work permit for either their authorized director or their employee, then they must apply and enrol in the VAT system with the Revenue Department.

The required documents when registering in the VAT system are:

From the Landlord

Letter of consent from your landlord

Copy of ID card and House registration of your landlord

Copy of the Condominium Unit Certificate (Title Deed)

From the Lessee (your company)

Company’s affidavit

Copy of the passport of the Company’s Authorized Director (in the case of foreigner director)

Copy of the Authorized director’s ID Card and house registration (in the case of a Thai director)

Pictures of the office (the condo unit) – pictures must cover the following aspect – the illustration of the company’s name by the condo unit number, actual office

Map to the office

Lease Agreement (between the designated company and the Condominium Unit owner [Landlord])

And for your own interest – clearance from the Condominium Juristic Management permitting you to use this condominium unit as your company’s address.

Please be inform that having an registered office in a condominium may be at risk of being blacklisted, as when you apply for the VAT and/or a work permit. The related officer will be visiting the office to inspect the status of the business. Upon the officer’s visitation, if the security guard of the condo building are unaware of your company existence, and when they have been questioned, they may inform the officer they have never seen or hear of your company and your company does not exist. And once they were unable to inspect, they would have to report to their superior of the visitation outcome.

Furthermore, when you have your company renting the condo from your wife, your company has the responsibility of withholding 5% of the rental payment and you would have to submit them to the revenue department on a monthly basis. Whereas your wife at the end of the year would be incurring tax as she has been collecting the rent (generating income) from your company

Our expert Legal Advisors can provide you a more detailed information about property matters.

www.bangkokcondosonline.com

Sunbelt Asia. Co., Ltd

No. 236 Sukhumvit Road

Between Soi 12-14 next to Time Square Building

Klongtoey Nua, Wattana, Bangkok, Thailand 10110

Tel: 02-229-4779 Fax: 02-229-4778

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[Sunbelt Asia]

Let me also add the following

Lastly, if in the event you manage to obtain permission from the Condominium Juristic, you must also convert a portion of this residential unit into an office equipped with office table, chair, telephone maybe or a computer and a banner of your company. As per work permit requirement, you are also advised to hire 4 Thai employees per 1 foreigner/work permit applicant. There are some cases where the officer may approve employees less than 4 but this is on a case by case and is on the discretion of the officer but in reference for the office address, you must allocate space(s) for the employees that will be hired by your company.

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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