Moving And Starting A Business

[jpeno1972]

hi all been to pattaya an due to go back in aug with a view to move for good, how easy is it to reg a ltd company and buy land or property ????????

[Braccobaldo]

...if you have money everything here is easy...

[Steve2UK]

hi all been to pattaya an due to go back in aug with a view to move for good, how easy is it to reg a ltd company and buy land or property ????????

<{POST_SNAPBACK}>

All due respect etc.......... but instinct tells me that maybe you need to do quite a bit more reading on here. Suggest you use the search function for company, land, house, condo etc.

[Indo-Siam]

Staring a business is easy. Running a successful business - achieving break-even, then making a liveable profit, and then - finally - accumulating wealth here - is substantially harder.

You will initially run into four items of "burn rate" that start as soon as you incorporate, and securea wpork permit:

1) Office rent (you must maintain a legally sufficient business address)

2) Monthly bookkeeping (There are four submissions that must be accomplished every month : personal income tax withholding, VAT submission, social fund withholding & company match, and corporate income tax withholding on your vendors)

3) Personal income tax withholding on your salary, as stated in your work permit application

4) Salary for a Thai-speaking administrative person to handle your company admin.

I would use 20,000 baht per month as a "thumbnail planning factor" for minimum burn rate.

Actual cost to get the company set up is going to run in the 20,000 to 30,000 baht range. When you see people offering "999 baht company registration" or "2,500 baht company registration" - realize that they are just running cons for the gullible - there is always 11,000 baht capital registration fee (for a company eligible to sponsor a work permit), and all the companies that charge small baht for "registration" then make it up with ridiculously high fees for company seal, VAT registration, tax registration, etc.

Your main challenges in getting started will be:

1) Figuring out how to structure your shareholdings - you must have seven shareholders, and - you want your company to purchase land - you are going to have to maintain a certian minimum percentage of shareholdings by Thais.

2) Establishing a legally-sufficient initial business address - you must have a certification of business occupancy by the owner of the building where your company is registered, and this is generally harder to obtain than it would first appear.

Longer-term, your main challenge - to allow you to live and work here without having to frequently make visa runs - will be to employ four Thais, have 2,000,000 baht paid-in capital,and be paying monthly personal income tax withholding on a minimum salary, based on your nationality.

In my estimation, most people who fail do so for two main reasons:

1) They are under-capitalized at the outset.

2) They are not good at sales and marketing.

Good luck!

Steve Sykes

Managing Director

Indo-Siam Group

Bangkok

[email protected]

www.thaistartup.com

[hopeless]

on the plus side, farangs can buy a condo

[Harmonica]

hi all been to pattaya an due to go back in aug with a view to move for good, how easy is it to reg a ltd company and buy land or property ????????

Another live one! Buy "victim" insurance!

Predators have already made a mental note and have added you to the database and will be watching the airports!

Hurry!

[h90]

I mostly agree, but some adds.

4) 20K Baht per month is maybe to low! Plannings in Thailand I do usually that way: i calculate everything and when I know how much, I just double that number! The Thai speaking person should also speak english, but should not have learned it in the bar.

Our company registration cost 3000 Baht

challenges

1): usually these "shareholder" also sign something that enables you to replace them fast.

2) these 2 Mill THB: We have 3 Mill and we did not need to really show them. we only signature that we have that money

estimations

3) get cheated by good friends in Thai nationality (a friend who made an hotel here, but it was on the name of a thai person)

4) marry a thai lady from the bar and she ripp him off

5) have some staff which takes all the company documents and open the same company himself and take your customer (now one tires this again here)

6) to much party time....

Good luck

h90

We had already our brake even, at least I am already nearly broken

Staring a business is easy.  Running a successful business - achieving break-even, then making a liveable profit, and then - finally - accumulating wealth here - is substantially harder.

You will initially run into four items of "burn rate" that start as soon as you incorporate, and securea wpork permit:

1)  Office rent (you must maintain a legally sufficient business address)

2)  Monthly bookkeeping (There are four submissions that must be accomplished every month :  personal income tax withholding, VAT submission, social fund withholding & company match, and corporate income tax withholding on your vendors)

3)  Personal income tax withholding on your salary, as stated in your work permit application

4)  Salary for a Thai-speaking administrative person to handle your company admin.

I would use 20,000 baht per month as a "thumbnail planning factor" for minimum burn rate.

Actual cost to get the company set up is going to run in the 20,000 to 30,000 baht range.  When you see people offering "999 baht company registration" or "2,500 baht company registration" - realize that they are just running cons for the gullible - there is always 11,000 baht capital registration fee (for a company eligible to sponsor a work permit), and all the companies that charge small baht for "registration" then make it up with ridiculously high fees for company seal, VAT registration, tax registration, etc.

Your main challenges in getting started will be:

1)  Figuring out how to structure your shareholdings - you must have seven shareholders, and - you want your company to purchase land -  you are going to have to maintain a certian minimum percentage of shareholdings by Thais.

2)  Establishing a legally-sufficient initial business address -  you must have a certification of business occupancy by the owner of the building where your company is registered, and this is generally harder to obtain than it would first appear.

Longer-term, your main challenge - to allow you to live and work here without having to frequently make visa runs - will be to employ four Thais, have 2,000,000 baht paid-in capital,and be paying monthly personal income tax withholding on a minimum salary, based on your nationality.

In my estimation, most people who fail do so for two main reasons:

1)  They are under-capitalized at the outset.

2)  They are not good at sales and marketing.

Good luck!

Steve Sykes

Managing Director

Indo-Siam Group

Bangkok

[email protected]

www.thaistartup.com

<{POST_SNAPBACK}>

[Insight]

Steve (Indo-Siam) & h90, brilliant responses! Just the type of info I've been looking for recently. Many thanks...

[chownah]

hi all been to pattaya an due to go back in aug with a view to move for good, how easy is it to reg a ltd company and buy land or property ????????

<{POST_SNAPBACK}>

jpeno1972, Are you still there?

[~G~]

2) these 2 Mill THB: We have 3 Mill and we did not need to really show them. we only signature that we have that money

Some company set-uppers prepare the documents to show that the full capital (2M or whatever) was fully paid, when in fact, little or nothing was paid. "Good for the WP", they'll say, "True or not, nobody cares".

The catch? What will you do on the yearly audit? The company needs to show 2M worth of assets, or to show what happened to all this capital.

Then your accountant will need to sweat... and sweat again.... And to chew his pencil into unregonizable shapes.. To juggle numbers here and there, be much more creative than he's supposed to be and hope for good.

Edited July 4, 2005 by ~G~

[h90]

I heared, please correct me if it is wrong, that the Thai Revenue Department does not need the papers from the bank account. so the 2 Mill still stay there as money.

In our case and that sounds very very stange for my european ears, my wife, her sister and someone else borrowed privat 2 Mill from the company.

So where is the money, these 2 ladies borrowed it. In my opinion this is crazy (and not logic), but OK with the revenue department. Also I heared from a couple of other companies that their staff borrowed money (in these cases really) to buy a car, from the company in which they are working. So maybe thats normal in thailand??

2) these 2 Mill THB: We have 3 Mill and we did not need to really show them. we only signature that we have that money

Some company set-uppers prepare the documents to show that the full capital (2M or whatever) was fully paid, when in fact, little or nothing was paid. "Good for the WP", they'll say, "True or not, nobody cares".

The catch? What will you do on the yearly audit? The company needs to show 2M worth of assets, or to show what happened to all this capital.

Then your accountant will need to sweat... and sweat again.... And to chew his pencil into unregonizable shapes.. To juggle numbers here and there, be much more creative than he's supposed to be and hope for good.

<{POST_SNAPBACK}>

[~G~]

I heared, please correct me if it is wrong, that the Thai Revenue Department does not need the papers from the bank account. so the 2 Mill still stay there as money.

According to my accountant, there will be some kind of correspondance going on between the auditor and the bank during the yearly audit. "Show me the money!" kinda thing.

In our case and that sounds very very stange for my european ears, my wife, her sister and someone else borrowed privat 2 Mill from the company.

Ok, I guess that's one creative solution... As long as you have some documents to back it up with.