Famous Singer Tik Shiro Involved in Fatal Bangkok Car Accident, Two Dead

[haveaniceday]

On Thai Visa thereis plenty of information on setting up a company, cost and how to do for around30,000 baht.

I am trying to gainan understanding of what my wife is referring to, I believe it is a kind ofSole Trader in the west.

She has a smallmanufacturing biz, where she generallymakes stuff that people in markets then on sell. I do doubt that other business around hereand the likes of mom and pop stores are actually companies.

She keeps referring toa ‘family business’.

I see no referenceto these on the net. She would also like to sell some other imported things that wouldbe advertised online, for a small niche market of expats in Thailand for a few “nick-knacks” that are difficult tosource in Thailand that I and some of my friends import directly for ourpersonal use.

Has anyone had experiencewith their Thai wives owning a small biz like this?

This type of biz atno point would need to be the kind of company required to sponsor work permitsor own a house.

Is there anyrestriction to the number of staff?

I am confused as many times receipts have not been kept, that I would have thought should have if going down this line. I know she wants to do things right and avoid potential stress down the track.

Any advise would be good.

Thanks

[simon43]

That sounds like a Thai sole trader business, which any Thai person can set up/register for just a few hundred baht. I suspect many Thais who run sole-trader businesses actually do not register them, because one primary purpose for registering such a business is to 'officially' pay tax and employee fund payments. There could be an advantage in doing so if, for example, an employee became ill and needed to attend hospital. But a very good reason to register any sole trader business that she is operating is to 'formalize' receipt of revenues into her personal bank account, which can be useful if she needs to borrow money from her bank (eg to buy a house or to apply for a credit card), and she has to show proof of income.

For a sole trader business, all income is treated as personal income, and taxed accordingly. So business income can be paid into a personal bank account.

Any Thai accountant should be able to help her register her sole trader business

Simon

[IMA_FARANG]

From what I understand this business is to be run by your THAI wife. No problem there. Just be aware that you as a foriegner may not be allowed to take any part in this business. To be specific, you can't do anything that might be classified as WORK for the business, even such things as promoting or advertising that business for a salary or any form of compensation. Bottom line: to WORK for the business in Thailand you need a WORK PERMIT and for that you need to be sponsored by a Thai company.

Be careful also, because if you provide the initial funds and derive a profit from those funds from the business yourself, you might be on shakey legal grounds. I guess you understand all that. I'm just trying to emphasise that what a THAI citizen can legally do in the way of establishing and operating a business is NOT what a foriegner can legally do.

The foriegner is restricted in what he/she can do...even if the THAI person is their husband or wife.

Edited July 12, 2010 by IMA_FARANG

[haveaniceday]

It is very much her biz she has set up and kept ploughing profits to expand her self, I take my hat off to her the hours she puts in.

It is ;genuinely her little gig that she is very proud of. She has had some larger orders recently which is prompting her to be more official, as in the past it's been word of mouth, she wants start soliciting retail shop customers for orders as well.

In doing so there is always the risk of stepping on opposition toes and bigger customers want a paper trail them selves. She also wants a brand name. Basicly; the time has come for her to be official.

I have learnt things like this, better to leave the finer Thai points up to her, but I need to understand what she is doing as all I knew about was 30,000 baht companies. I have learnt that leaving anything regarding safety, plumbing, electrical up to Thais to be simply scary, I don't want the misses to do the same mistakes here. She is getting advice from family members who I can only say are dodgy at best.

So it looks like from '<i>Simons43'</i> comments above a Thai sole trader biz can employ Thai staff, (and and I presume the 750b +750b Gov Social security fund).

I presume she would have to withhold and pay VAT of good sold ?

I presume she would have to pay personal income tax on profits?

I presume that cost related to the Biz would be tax deductible?Or does basic business principles not apply in Thai land in this regard for a Thai Sole trader? (not trying to be sarcastic either)

Thanks for reply so quick as well.

Edited July 12, 2010 by haveaniceday

[haveaniceday]

Edit, question deleted and included above.

Edited July 12, 2010 by haveaniceday

[simon43]

So it looks like from '<i>Simons43'</i> comments above a Thai sole trader biz can employ Thai staff, (and and I presume the 750b +750b Gov Social security fund).

Yes, a Thai sole-trader can employ Thai staff, but you need to check what social fund payments apply

I presume she would have to withhold and pay VAT of good sold ?

If her revenue is above x baht/year, then she would need to register for VAT (x is about 1.5 million I think - you need to chek)

I presume she would have to pay personal income tax on profits?

Yes

I presume that cost related to the Biz would be tax deductible?Or does basic business principles not apply in Thai land in this regard for a Thai Sole trader? (not trying to be sarcastic either)

Yes, but I do not think she has to produce receipts for every expense. My previous experience of this was that the accountant thought of a ridiculously large expense for the month, doubled it, and then calculated the very small amount of tax that was liable on the remaining profit, (and then divided this by 4)

Simon