Smallest Possible Non-Foreign Legal Ntity

[kLMU3bzc]

Dear All,

what is the smallest possible thai/non-foreign legal entity?

Basically I just would like to set-up a postbox in order to invoice (and pay tax of course ). I always heard of 2 Mio. THB registered equity when 25% are payable. Are smaller amounts possible? What is the limit when my wife or daughter hold all shares? What if I hold max. 40 % of the shares? What age my daughter shall have in order to own shares?

I am really looking for the smallest/cheapest possible option as I do not depend on it w/ Visa or income or risk.

Thank you and best regards!

[TravelerEastWest]

With a Thai wife roughly 1 million baht for a registered company.

The children cannot be promoters (initial shareholders) but can own shares say a few days after forming the company.

[kLMU3bzc]

With a Thai wife roughly 1 million baht for a registered company.

Thank you!

1 Mill. THB registered which means 250'000 THB in cash immediately + almost 80'000 THB for the lawyer, right? Almost 8'000 EUR.

I wonder if this is really the cheapest option already for a Thai owned post box.

Best regards!

[kLMU3bzc]

Sunbelt says: Although there are no minimum capital requirements, the amount of the capital should be of a respectable amount, and adequate for the business operation to function healthily. The Memorandum registration fee is 50 baht for every 100,000 baht of registered capital. The minimum fee is 500 baht, and the maximum is 25,000 baht.

What is a respectable amount when we are just talking on equity, not on revenue? The business will generate income from license-fee/royalty. So there are no fixed costs or any expense but just some variable costs as travel, accounting and registration fee etc. I just would like to invoice and pay tax!

regards

[Indo-Siam]

To the OP: To whom will you be issuing invoices, and for what deliverable?

There is a little-known entity called a Kha Nah Buk Khon ("Face of a Person") that can be established by a Thai citizen, and then registered with the Revenue Department, and which can open a bank account. It can collect revenue, and pay busies expenses - including paying salaries to Thai workers. A Kha Nah Buk Khon pays income taxes annually at the regular Thai personal income tax rates.

That is all the information that I am prepared to outline for free.

My company has previously set up this sort of entity for certain individuals.

Cheers!

Steve Sykes

Managing Director

Indo-Siam Group

[kLMU3bzc]

To the OP: To whom will you be issuing invoices, and for what deliverable?

There is a little-known entity called a Kha Nah Buk Khon ("Face of a Person") that can be established by a Thai citizen, and then registered with the Revenue Department, and which can open a bank account. It can collect revenue, and pay busies expenses - including paying salaries to Thai workers. A Kha Nah Buk Khon pays income taxes annually at the regular Thai personal income tax rates.

That is all the information that I am prepared to outline for free.

My company has previously set up this sort of entity for certain individuals.

Cheers!

Steve Sykes

Managing Director

Indo-Siam Group

Steve,

thank you very much. This Kha Nah Buk Khon seems to be the equivalent of a "Gesellschaft Bürgerlischen Rechts (GbR)" , when you do not need any equity/capital (but are reliable with all of your assets) -- which fits perfectly, as my wife has nothing.

The objective is to issue invoice to other, unrelated foreign companies on royalties/license fee or arrangement fee.

Just one question please: Is there any naming constraint for this Kha Nah Buk Khon? Could it still be a company-like name or has it to be the persons name then?

The best!

[Indo-Siam]

The entity can have a unique "business" (account) name. A KNBK is normally used to collect revenue in such a way that the revenue is not combined with the other revenue earned by the individual establishing it - so that such income is not taxed at the highest marginal personal income tax rate of the "founder". Thus, it different from a sole proprietorship - which must be in the individual's personal name, and in which all revenue that the individual receives is consolidated, and then taxed at personal income tax rate - albeit with large standard deductions, depending on the type of business.

Cheers!

Steve

Indo-Siam

[raro]

Sunbelt says: Although there are no minimum capital requirements, the amount of the capital should be of a respectable amount, and adequate for the business operation to function healthily. The Memorandum registration fee is 50 baht for every 100,000 baht of registered capital. The minimum fee is 500 baht, and the maximum is 25,000 baht.

What is a respectable amount when we are just talking on equity, not on revenue? The business will generate income from license-fee/royalty. So there are no fixed costs or any expense but just some variable costs as travel, accounting and registration fee etc. I just would like to invoice and pay tax!

regards

if YOU want to invoice and pay taxes, you would need a work permit. Do some research on the requirements you have to meet, but 2 Mio paid up and 4 Thai employees are a good start.

[bbradsby]

Hi,

I also am setting up the legal entity for a Thai business, so this thread is timely. Can this type of business entity own Thailand property, and where can I find a list of business types and/or professions for which Thai citizenship is required?

Thanks in advance!

[raro]

your business can own land, provided is has either Thai majority or BoI promotion.

for your other quesiotn, you may check with the Alien Business Act.

[kLMU3bzc]

if YOU want to invoice and pay taxes, you would need a work permit. Do some research on the requirements you have to meet, but 2 Mio paid up and 4 Thai employees are a good start.

What an arrogant statement: "do some research, 2 Mio. to start".

This capital amount is not true in case of domestic owned company. Also I know very well on the requirements on starting foreign owned enterprise. Also I have a work permit already. Also legally you do not need a work permit to invoice something!

So what exactly is you point?

[raro]

if YOU want to invoice and pay taxes, you would need a work permit. Do some research on the requirements you have to meet, but 2 Mio paid up and 4 Thai employees are a good start.

What an arrogant statement: "do some research, 2 Mio. to start".

This capital amount is not true in case of domestic owned company. Also I know very well on the requirements on starting foreign owned enterprise. Also I have a work permit already. Also legally you do not need a work permit to invoice something!

So what exactly is you point?

Unless the business is owned by your Thai wife, you need 2 Mio registered and paid up capital to obtain a Work Permit. In any case, you need 4 Thai staff per foreigner.

Invoicing is considered working and requires a Work Permit.

Not sure what is arrogant about my statement, do a bit of research in this forum and your questions will be answered.

[mark5335]

[if YOU want to invoice and pay taxes, you would need a work permit. Do some research on the requirements you have to meet, but 2 Mio paid up and 4 Thai employees are a good start.

If the foreigner is marriued to a Thai citizen, is it correct that the minimum number of Thai employees is reduced to 2 ? and does the minimum paid up capital remain at 2MB can it be lower?