Free Lance Work Permit-

[TigerWan]

I do not know any Thais I can trust with 51 % , nor any with 1 million baht to invest for a company.

Is there such a thing as a freelance work permit ?

I want to offer lessons.

How do artists work it out with permits? Or computer repair, anyone else offering services in the local paper ?

So what is a " shelf " company? What is SME ?

I see an ad for a company already established 2 years ago

" Clean and unused .."

When I inquired what the company is for, response was,

" Oh, you can use it for anything..."

Is this one of those " sounds too good to be true " deals.

[BWPattaya]

I do not know any Thais I can trust with 51 % , nor any with 1 million baht to invest for a company.

Is there such a thing as a freelance work permit ?

I want to offer lessons.

How do artists work it out with permits? Or computer repair, anyone else offering services in the local paper ?

So what is a " shelf " company? What is SME ?

I see an ad for a company already established 2 years ago

" Clean and unused .."

When I inquired what the company is for, response was,

" Oh, you can use it for anything..."

Is this one of those " sounds too good to be true " deals.

I'll try one point at a time.

One million Bt. It is not the amount needed to invest in a one million Bt company. That is just the registered capital. To open a compnay will only cost around 20,000 Bt. Yes, 51% must be Thai persons. Not sure how many Thais now as they reduced the numbers a couple of years ago.

There is no such a thing as a freelance work permit.

Lessons. What sort of lessons?

How do artists work it out with permits? Or computer repair, anyone else offering services in the local paper ? Perhaps not a question to ask.

Not a "shelf" company but a "shell" company. A company set up for the purpose of, perhaps, owning property but not actually trading.

The company you have been offered can be used for anything. All you are buying is a registered company name. What it does is up to the owner. When someone has a company for the purpose of owning a house (for instance) by a foreigner but sells the house to someone who does not want to take over the company, perhaps putting the house in a Thai person's ownership, the company is no longer needed. To close the company requires an accountant to audit the books, arrange for any taxes to be paid, dispose of any assets, and then close the company formally. Probably in excess of 20,000 Bt, this is not a cheap process. If someone is offering you a company offer to accept it free and offer 50% of the cost of transferring the ownership. About 5,000 Bt each. They will save a lot of cash. If they don't agree they will have the option of (1) keeping the company and paying tax and audits every year, or (2) closing it themselves.

Is it too good to be true? Not necessarily. If you are certain that you are going to open a company this may save you some money - but make sure you get an audit done prior to taking it over or you may find there is some unpaid taxes. If the taxes are not paid yearly they accrue interest and a fine. After three years of unpaid taxes/fines the tax office will issue an arrest warrant.

No doubt someone will correct something but hopefully I am preparing you.

Good luck

Edited May 28, 2010 by BWPattaya

[Forkinhades]

As long as you 'show' an income of 100,000 baht you can freelance

[TigerWan]

- Thanks for that BWPattaya,

But I still need the 51% partner , correct?

I understand 2 million capital is needed , thus the Thai 51% partner needing 1 million. ( Though I have the 2 million.)

I am wary of the " nominee " voting share scenarios that everyone is doing and is illegal as I understand it.

I get caught when I try to cut corners.

ForkinHades.

Do you have more info, please- 100,000 a month?

I might swing that

Edited May 28, 2010 by TigerWan

[Forkinhades]

That was what my lawyer said, when I looked into it

[mjnaus]

As long as you 'show' an income of 100,000 baht you can freelance

I never heard of this before. Show this income to whom? And how does one document freelance (foreign) earned income in Thailand?

[Forkinhades]

Sorry I meant turnover.

Once you have set up your 2 mill baht company, set up an office, then apply for your 'specialist' work permit. You will be freelancing in whatever your field is.

[Sunbelt Asia]

The process to "freelance" is the same as any foreigner wanting to do business on his own: You must set up a company and get a work permit under the aegis of that company. Except in limited cases, you cannot have majority or total ownership of the company.

If you are American you can establish a company under the Treaty of Amity, which would allow for 100 percent ownership. Australians and Japanese, as well, can obtain controlling interest in their companies under respective free-trade agreements with Thailand.

In other cases, however, you will need to establish a company that meets the following requirements:

· Registered capital of 2 million baht or just 1 million baht if you are married to a Thai national.

· Applicant would be earning income at least the same level as specified by the immigration office (e.g. American must earn 50,000 Baht per month).

· 4 Thai employees each earning income at least the minimum rate specified in the Labor Act. (proven by the Monthly Withholding Tax filing -PND 1 and Social Fund filing – Sor Por Sor 1-10) However, in Bangkok they would like to see two of the Thais being paid more than just the minimum salary rate preferably around 10,000 -15,000 Baht)

Note that initially (and depending on the officer’s discretion), the Labor Department Office may approve you work permit application even though you were not able to show 4 Thai employees if your employer is at start up.

There are, as you've seen, people trying to sell already established companies but you'll want to decide if you'd face less complications and cost (long-term) in establishing your own company with the help of expert legal advisors. Feel free to contact us below for more info on establishing a firm, obtaining a work permit, SMEs and ownership issues.

www.sunbeltlegaladvisors.com

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

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

Follow us on:

[TigerWan]

Sorry I meant turnover.

Once you have set up your 2 mill baht company, set up an office, then apply for your 'specialist' work permit. You will be freelancing in whatever your field is.

Thanks but I'm back to square 1 Actually - Square 1

HOw the hel_l did this place get the rep for being foreign-business friendly, seems to be anything but.

Edited May 28, 2010 by TigerWan

[Forkinhades]

Sorry I meant turnover.

Once you have set up your 2 mill baht company, set up an office, then apply for your 'specialist' work permit. You will be freelancing in whatever your field is.

Thanks but I'm back to square 1 Actually - Square 1

HOw the hel_l did this place get the rep for being foreign-business friendly, seems to be anything but.

Go speak to a lawyer, then you will know exactly what you need, and what you can and cannot do.

Indeed Thailand is very difficult for the small business. Just making things more and more difficult.

Edited May 28, 2010 by Forkinhades

[TigerWan]

Sorry I meant turnover.

Once you have set up your 2 mill baht company, set up an office, then apply for your 'specialist' work permit. You will be freelancing in whatever your field is.

Thanks but I'm back to square 1 Actually - Square 1

HOw the hel_l did this place get the rep for being foreign-business friendly, seems to be anything but.

Go speak to a lawyer, then you will know exactly what you need, and what you can and cannot do.

Indeed Thailand is very difficult for the small business. Just making things more and more difficult.

I've seen many lawyers and every single lawyer or consultant or whatever they are calling themselves has a different take.

Sunbelt

I'm aware of Amity, I'm also aware it might get yanked under ASEAN

So what is your take on why buying an existing company might be trouble?

Thanks

[Khun Jean]

Buying an existing company can have problems like unpaid invoices,tax, labour problems in the past etc.

You would need to investigate all those things and be sure you not find any 'dead bodies in the closet' as we say in my home country.

A new freshly started company can be setup quickly and for not to much money. You will be 100% sure it will be free of all those nasty things that can be hidden.

if you work 'freelance', another question is do you need a Thai 'presence'. If not going off-shore is another possibility or just maintain your 'business' in your home country.

[tgw]

TigerWan

you need to solve your problems one at a time.

If you offer lessons in Thailand, your main problem will be your presence in Thailand while working offering these lessons.

Either you want a legal way to give these lessons - in this case you need a work permit (no offshore company will help you there)

or: you don't care about legality, and you don't need anything at all and are exposed to prosecution.

An offshore company will be helpful only if you can offer your services remotely (for example by teaching through a webcam).

[Soutpeel]

if you work 'freelance', another question is do you need a Thai 'presence'. If not going off-shore is another possibility or just maintain your 'business' in your home country.

How the h*ll will he get a WP for Thailand then...

No such animal as a "freelance" WP in Thailand, OP needs to set up a company, get his WP and sell his services through his company..

Closest thing is the temporary WP a.k.a. the Emergency WP, these are issued for specific jobs for two weeks only

[TigerWan]

if you work 'freelance', another question is do you need a Thai 'presence'. If not going off-shore is another possibility or just maintain your 'business' in your home country.

How the h*ll will he get a WP for Thailand then...

No such animal as a "freelance" WP in Thailand, OP needs to set up a company, get his WP and sell his services through his company..

Closest thing is the temporary WP a.k.a. the Emergency WP, these are issued for specific jobs for two weeks only

Thank you for that straight answer.

I reside on an investor ( B ) visa so what is your opinion please on the penalty for offering lessons without a permit ?

Seems the entire system from immigration to FBA is geared toward marrying off Thai women to foreigners.

Not an option .

[monty]

I reside on an investor ( B ) visa so what is your opinion please on the penalty for offering lessons without a permit ?

Is that a 1 year extension based on investment?

If so, are you being grandfathered on the old 3 million Baht, or on the new version requiring 10 million Baht?

Basically, if you get caught working without a WP, you will be arrested. If you agree to voluntarily leave Thailand (i.e. voluntarily deported), you will only be fined (no jail term).

By being deported, any visa you hold will be voided, so if you are here on the 3 million investment extension, you'll lose it and have no possibility to get it back (unless you up your investment to 10 million).

[Soutpeel]

I reside on an investor ( B ) visa so what is your opinion please on the penalty for offering lessons without a permit ?

Seems the entire system from immigration to FBA is geared toward marrying off Thai women to foreigners.

Not an option .

Believe these days....5 years and/or THB 200,000 fine... ....would you get 5 years/200k fine if caught ?....most likey not, but could mess your future visa's up...Will you get caught....depends who you upset..

[Forkinhades]

I reside on an investor ( B ) visa so what is your opinion please on the penalty for offering lessons without a permit ?

Seems the entire system from immigration to FBA is geared toward marrying off Thai women to foreigners.

Not an option .

Believe these days....5 years and/or THB 200,000 fine... ....would you get 5 years/200k fine if caught ?....most likey not, but could mess your future visa's up...Will you get caught....depends who you upset..

indeed, just not worth the risk

[PoorSucker]

I reside on an investor ( B ) visa so what is your opinion please on the penalty for offering lessons without a permit ?

Seems the entire system from immigration to FBA is geared toward marrying off Thai women to foreigners.

Not an option .

Believe these days....5 years and/or THB 200,000 fine... ....would you get 5 years/200k fine if caught ?....most likey not, but could mess your future visa's up...Will you get caught....depends who you upset..

indeed, just not worth the risk

Normally 200.000 baht fine, deportation and blacklisted to enter Thailand again.