Business Advice

[Pablo H]

I am considering starting a business of some sort in the next few months. Before doing so I have a few questions that need answering. I would apprieciate it if anyone can answer the folowing questions and/or add anything which might be helpful.

1: Can I register a business in my name only?

2: Can I solely purchase or rent an office/shop?

3: My intial capital will be in the form of US $ Dollars. I wish to bring this capital into the country and bank it, how much is the legal limit that I am allowed to bring in and deposit into a bank account?

4: Can anyone reccommend a reliable and trustworthy accountant.

If anyone could answer these questions I would be most grateful

cheers

Pablo.

[Indo-Siam]

Pablo -

1. Only Thais and American citizens may open sole proprietorships here. Limited partnerships are possible - but unless you are an American, the Thai partner(s) must hold 51% and be the active manager in order for you to be a limited liability partner. Otherwise (and this is the route that most foreigners pursue), you needto form a Thai Private Co. Ltd. This requires seven initial promoters, as initial shareholders, and the majority of shares must be held by Thais. It is fairly common for foreigners to set up companies using "nominee" Thai shareholders - proxy Thai shareholders who - for a fee - allow use of their identities to hold shares - and then take no actove role in the business.

2. You may rent an office or shop without difficulty. Expect to pay two or three months rent as advance deposit, plus first month's rent in advance.

3. At levels below mega-bank transactions - there is no limit to the amount of money you may wire into a bank account in Thailand. But - it will be converted to Thai baht before being placed into your account. In most cases, a Thai Private Company may not hold a US dollar account in Thailand. An individual with non-immigrant visa and work permit may open a personal US dollar account. Be advised - large money transfers - I believe anything over US $5,000 - but it may now be US $10,000 - are reported to international banking regulators, and are evaluated in relation to money-laundering surveillance. Also, if you send in a LARGE sum, you will not have access to the money until you complete amnd submit a Thai TT3 form - again, part of money-laundering control.

4. For an accountant - you can go to Price Waterhouse Coopers in Bangkok - or to slightly lesser firms. such as Grant Thornton. Or you can use a small accountant - my firm offer monthly accounting service for clients who use my firm to incorporate.

Good luck!

Steve Sykes

Managing Director

Indo-Siam Group

Bangkok

[email protected]

www.thaistartup.com

[Pablo H]

Thanks for the reply, I may be in touch soon.

[Sunbelt Asia]

Hi Pablo,

1. I would add..As an American you can own a sole proprietorship, but if its on Alien Employment Act which hase occupations reserved for Thais which are closed to foreigners. You can not get a work permit as a SOLE PROPRITOR. These include Assessment, system planning, research planning, testing, and supervisory and advisory work in connection with construction and civil engineering, except work requiring specialized skills Designing and preparing drawings of buildings and architectural structures including consultation, cost estimation and construction supervision of the designs Controlling, auditing, and accounting services, except occasional internal audit Legal service and Litigation,Clerical and secretarial work,Brokerage or agency work, except work connected with international trade,Auctioneering,Shop-front selling,Hawking of goods,Barbering, hairdressing and beautician work,Tour guiding and tour promoting,Rice farming, animal husbandry, fishery, and forestry, except supervisory or specialist work,Nielloware making,Manual silk weaving,Manual cloth weaving,Manual silk-product making,Tailoring,Thai-language typesetting, Lacquer art making,Driving of motor vehicles or non-motorized vehicles and domestic aircraft piloting,Buddha image casting,Manual rice-paper making,Manual cigarette rolling,Hat making,Mattress and blanket making,Shoe making,Wood carving,Knife making,Gem cutting and polishing,Making of gold, silver and other metallic ornaments,Pottery or ceramics,Thai musical instrument making,Thai traditional doll making,Bricklaying, carpentering and other forms of construction,

Alms bowl making,Mat weaving and making of wares from national plant fibers,

Stone inlay wares making,Manual labor , among others.

As well as some restrictions on American investment still exist including as the Sole Propritior. They include:

owning land;

engaging in the business of inland communication;

engaging in inland transportation and communication industries;

engaging in fiduciary functions;

engaging in banking involving depository functions;

engaging in domestic trade in indigenous agricultural products;

exploiting land or other natural resources

However if you are called a Managing Director then you can get a work permit even if you own one of the companies that has a restricted occupation.

2. I would add... if you are looking to get a work permit. Be sure you'll be able to get the physical ID or passport of the Landlord to take down to the VAT office, Along with house registration papers of the Landlord. If not, you won't be able to get a work permit without the VAT cert.

4. One that only speaks Thai will run around 3,000. English speaking around 6,000 and up per month.

Regards,

Greg

www.sunbeltasia.com

[Pablo H]

If I were to start a business I would need a Thai partner or shareholders as mentioned before. I have many Thai friends/aquaintance's, however I would like to control the company myself.

Having read the last post, the idea of having proxy shareholders sounds like the best option for me. I would not like to approach my friends about the proxy idea, although I think I would wish to go ahead with that one, who would I contact to find "proxy shareholders"?

I am British and I am working for a company in Thailand at the moment and have a work permit. I have only recently opened a bank account in Thailand and wonder if my capital would be safe and also gain interest, deposited in a Thai bank. Which bank would you reccommend for use of transferring large amounts of capital?

Thank's for the previous replies, hope to read some more to give me a few idea's.

Pablo

[bukmba]

Well, I just setup a company (Co., Ltd. - 2 Mio reg. Capital) last month and I have 85% of the shares. I am German. My company is doing Network Services for Industrial companies. I also have a work permit as MD.

I knew about that 49% - 51% rule. According to my lawyer which did the setup for the company and everything, it is possible for foreigners to own more than 49% since about 2 years.

To be honest, I could not get any confirmation about this from anywhere, but it is fact that I have 85% of the shares acc. to the shareholders list and as already mentioned, my company is registered and I have a WP.

Capo

[TRIPxCORE]

Biz help for Bangkok

Here Pablo, sorry I am late with this info. Maybe you can get some good info here.

[Khun ?]

Pablo

The way it is done is just show up with 20 to 30,000 U.S. $$$ or equivalent and a dream, you should be able to start some type of business that will earn you a living for the rest of your life. Better even yet is if you pickup the responsibilities of an Isan family first as is done by many the better. At least your asking, be cautious of many deceiptful profiteers. Be very cautious and I think Indio and Sunbelt are a very

good start for honest dealings. So many blind and hidden things when doing business in a foreign country no matter how much we all think we know. Let us all know if things work out good or bad. Enjoy your adventures in Thailand it is a way of life as no other place on earth. Good Luck!!

[kwiz117]

4. One that only speaks Thai will run around 3,000. English speaking around 6,000 and up per month.

Hi Greg,

Are you sure about this? I have never seen any Resume where a Thai who can speak English and handle a full set-of accounts for 6,000 Bht per month range.

My guess is it is above 15,000 Bht per month.

[Abyss]

How come Americans get special treatment?

[TRIPxCORE]

How come Americans get special treatment?

Because we're special, dont you know that? Hehehehe....just kidding.

I suspect its because Thailand and the US have had a very close relationship over the years regarding economic and military ties.

[Khun ?]

Because Thais in the U.S. benefit more from the treaty.

[Sunbelt Asia]

Hi Greg,

Are you sure about this? I have never seen any Resume where a Thai who can speak English and handle a full set-of accounts for 6,000 Bht per month range.

My guess is it is above 15,000 Bht per month.

Yes...6,000 Baht is all our firm charges for

We provide the reliable accounting services and financial management in accordance with Thai GAAP (Generally Accepted Accounting Principles), the International Accounting Standards Committee (AISC) and the Thai Revenue Code.

We provide the reliable accounting services and financial management in accordance with Thai GAAP (Generally Accepted Accounting Principles), the International Accounting Standards Committee (AISC) and the Thai Revenue Code.

I. Accounting Services

· Computerized recording of financial transactions in accordance with Thai GAAP, the International Accounting Standards and the Thai Revenue Code

· Production of monthly financial statements such as but not limited to B/S, P/L, T/B, G/L, Sub-G/L

· Maintenance of account reconciliation

· Maintenance of Fixed Assets Ledger

II. Taxation Services

Monthly

· Monthly value added tax (VAT) returns

- Maintenance of monthly VAT input and output records

- Preparation of monthly VAT tax return form

· Monthly personal income tax returns

- Preparation and filing of withholding personal income tax return form

· Monthly corporate withholding tax returns

Annually

· Preparation and filing of half-year corporate earnings assessment

· Annual corporate income tax return

· Preparation and filing the form Sor Bor Chor 3 (summary financial statements) with the Ministry of Commerce

III Other Management Advisory Services

· Internal control system set-up

· Management reporting

· Accounting system development and implementation

· Operation software development and implementation

· Social Security and Fund registration and monthly contribution arrangement

You're correct many firms charge more. Our rate is 6,000 Baht and for us it makes sense to only have our professional fee this low. Our clients appreciate it.

[descartes]

>According to my lawyer which did the setup for the company and everything, it is possible for foreigners to own more than 49% since about 2 years.

Can you give me the contact details of your lawyers? Sounds like they could be worth their weight in gold.

Regards,