Working For Malay Company And Living In Thailand

[kawaiimomo]

Hello there,

I want to move to southern Thailand, probably Lanta in Krabi. I develop software for mobile phones and all this kind of jobs are based on Bangkok area. Recently I got an offer to work for an UK-Malaysia company and I could work from home, home being Thailand. But several problems arise with work permit and visa.

I'm from Spain, so no amity treaty for me. I cannot afford to pay 2 mil baht and to employ anybody, to set up a company there. I read about employment agencies you pay them to employ you and you can invoice and pay taxes through them, is that legal or at least safe?

Any advice would be greatly appreciated, Thanks

[Soutpeel]

To be legal you need WP, to get a WP, you need a Thai company to sponser your WP, if you are married to a Thai national then the requirements to set up a Thai limited company are halved....to be fully legal you dont have too many options

You dont need the THB 2.0 million in cash, its captialisation, you could have other assets in the company which total the 2.0 mil (could be offices, cars, property etc, computers etc)

The agency route will work provided you find an agency who is prepared to sort the WP out for you, and expect to hand over anywhere between 15-18% of your invoice amount to the agency.

Malaysian company contacts Agency Y in Thailand and awards them the contract, agency employs you and provides the WP...its a legal but quite an expensive way to do it...but possible

[kawaiimomo]

Thank you for your fast and clear reply :-)

I have further questions, hope you can help me with those too.

I have a Thai partner but not married. I understand if I marry her I just need 1 mil baht and 2 thai employees. What if she start and owns the company instead of me? I guess it would be even easier for a Thai national to set up a company. In that case, could she make a WP for me and employ me?

Anyway I was not aware that the 2mil baht could be properties like offices. If I start a Thai ltd co I'm going to need a real office address, I guess. Do you think a condominium or apartment could be owned by the company or just offices? I know you cannot use a house as office, what about using the office as place to live too?

About the agencies, 15-18% looks too much to me, not worth it. Anyway I would like to check some of those agencies, can anyone provide names please?

Thanks again :-)

[Mario2008]

Yes, she can employ you. But there are some restrictions on the kind of jobs you can do and there is also a minimum salary requirement.

Also, with a new company it is difficult to show the correct tax papers over 2 years period of time needed for an extension of stay from immigration. So you will be doing border runs two Malaysia every 90 days till the company can show the correct paperwork.

[Soutpeel]

Thank you for your fast and clear reply :-)

I have further questions, hope you can help me with those too.

I have a Thai partner but not married. I understand if I marry her I just need 1 mil baht and 2 thai employees. What if she start and owns the company instead of me? I guess it would be even easier for a Thai national to set up a company. In that case, could she make a WP for me and employ me?

Anyway I was not aware that the 2mil baht could be properties like offices. If I start a Thai ltd co I'm going to need a real office address, I guess. Do you think a condominium or apartment could be owned by the company or just offices? I know you cannot use a house as office, what about using the office as place to live too?

About the agencies, 15-18% looks too much to me, not worth it. Anyway I would like to check some of those agencies, can anyone provide names please?

Thanks again :-)

If you are married requirements are halved, ie 1.0 million ltd company + 2 Thai employees, in your situation you could never "own" the company anyway, for a Thai ltd company, majority state hold is always with a Thai national(s) totaling 51% of the company, the most you could hold is 49%.

The 2.0 or 1 million dependent on circumstances is captialisation in the company, doesnt need to be cash, as far as I am aware there is no restrictions on using condo's/houses etc as a business address or even a house for that matter, as long as the address is on the company papers, therefore you could live and work in the same premises.

As regards agencies, look the bigger ones up on the internet and approach them, some will entertain the idea, some will not, but the bottom line on this route is that the agenices are in the business to make a profit, therefore they would not do it as a favour and their margin would be the same as employing any other expat and providing WP, the 15-18% are indicative numbers agencies have when taking on expats

[kawaiimomo]

If you are married requirements are halved, ie 1.0 million ltd company + 2 Thai employees, in your situation you could never "own" the company anyway, for a Thai ltd company, majority state hold is always with a Thai national(s) totaling 51% of the company, the most you could hold is 49%.

I don't know why did I think I could marry a kathoey on Thailand... As they cannot change gender on id it's same sex marriage, and seems to be the same even if you marry her in a foreign country. So even if I live with her I'm going to have the same farang rights as before LOL So still in need of the 2 mil :-(

The company I contacted and well know here on the forums asked me for 20,000 THB plus 1500 company stuff plus 7% + 3% taxes + some 3,500. It's a nice bit of my salary but I still could do well but save little money. And since I'm going to be working on a project basis maybe some months I won't have any income, so 20,000 those months is going to be some real money...

Thanks for all your input guys, really appreciated :-)

Best regards

[jazzbo]

Another way to look at it is that you spend enough time in Malaysia so that you can reasonably claim that ALL you work is done in Malaysia and that you come to southern Thailand solely to spend time with your partner.

[kawaiimomo]

Another way to look at it is that you spend enough time in Malaysia so that you can reasonably claim that ALL you work is done in Malaysia and that you come to southern Thailand solely to spend time with your partner.

Thanks for your reply jazzbo, I think that's the best way to go on the begining of my life there.

[jazzbo]

You're welcome ... a nice thing to hear every now and then... Good luck.