Registered Capital

[Godot]

I'm considering starting a small business in Thail. But I'm a little bit confused by the "registered capital". The last lawyer I spoke to said that I actually do not have to put up any money, BUT since I will apply for a work permit, I MIGHT get into trouble later when it's due to renew my permit, IF someone at revenues discovers that I did not bring the 2M bht into Thail. Obviously, not being able to renew my permit, would be disastrous for my business. Does anyone have any advise or experiences regarding this?

[ThaiAdventure]

Yep.

Bring in the 2M

[Indo-Siam]

So far this year, Labor Department has not required bank statements showing that capital has been paid in. They will accept a letter signed by a director stating that capital is fully paid-in.

I would not sign such a statement, which - if found to be false - would permanently eliminate that company ever being able to secure another work permit, and placing the director who signed in position to be arrested.

But - I have watched people submit the statements, and get work permits. All they care about is the short term.

If your business proceeds successfully, once you have an annual financial report - and provided that you are making money - the importance of the early capitalization diminishes - they become more intersted in your company's financial health. An unwritten rule is that if you are not making sufficient corporate profit to be paying some meaningful corporate taxes in year three, work permit renewals for your firm will not be approved without additional paid in capital.

Good luck. I second the recommendation that you plan to pay in capital.

Indo-Siam