Starting A Company - Forms Of Capital

[magnolia_fan]

I am an American looking into starting a company with some Thai friends. From what I understand, the company needs 2 million baht in capital in order to hire a foreigner. My question is, what form of capital is required? If the property the company uses, for example a portion of a house owned by one of the partners, is worth more than 2 million baht, can this be used to meet the capital requirements? Any help will be greatly appreciated.

[Thaipwriter]

I am an American looking into starting a company with some Thai friends. From what I understand, the company needs 2 million baht in capital in order to hire a foreigner. My question is, what form of capital is required? If the property the company uses, for example a portion of a house owned by one of the partners, is worth more than 2 million baht, can this be used to meet the capital requirements? Any help will be greatly appreciated.

As I understand it....and others wil correct me if I am wrong but the "capital" does NOT have to be cash money. It can be property or knowledge or skills etc etc.

http://www.lawyer.th.com/

good luck..

[~G~]

Well, you cannot just say, "hey, I have a 2,000,000 baht worth of knowledge". No, that doesn't work. Intellectual property such as patents, copyrights etc. may be valued somehow.

Any form of real assets, real estate, stock, equipment, can be used. But then it has to become company's property. This needs to be backed up with the proper documentation.

[Thaipwriter]

Well, you cannot just say, "hey, I have a 2,000,000 baht worth of knowledge". No, that doesn't work. Intellectual property such as patents, copyrights etc. may be valued somehow.

Any form of real assets, real estate, stock, equipment, can be used. But then it has to become company's property. This needs to be backed up with the proper documentation.

This is a quote from Sunbelt Legal, they create many hundreds of company's in Thailand each year for farangs:

"It is not two million cash needed.

The requirement is a registered paid up company with two million baht. The paid up capital is essentially the portion of authorized stock that the company has issued and received payment for.

As of now, payment of the shares can be in many forms not just money. It can be in Know-how, goods, services, property, good will, or even shares in another company"

They also sponsor this forum, so I have no reason to doubt thier claims even if you do.

[~G~]

Well, you cannot just say, "hey, I have a 2,000,000 baht worth of knowledge". No, that doesn't work. Intellectual property such as patents, copyrights etc. may be valued somehow.

Any form of real assets, real estate, stock, equipment, can be used. But then it has to become company's property. This needs to be backed up with the proper documentation.

<{POST_SNAPBACK}>

This is a quote from Sunbelt Legal, they create many hundreds of company's in Thailand each year for farangs:

"It is not two million cash needed.

The requirement is a registered paid up company with two million baht. The paid up capital is essentially the portion of authorized stock that the company has issued and received payment for.

As of now, payment of the shares can be in many forms not just money. It can be in Know-how, goods, services, property, good will, or even shares in another company"

They also sponsor this forum, so I have no reason to doubt thier claims even if you do.

<{POST_SNAPBACK}>

Thaipwriter,

I know Sunbelt very well. I even used their services in the past, and had to move to another firm in the middle of the setup process. I will respect the fact that they are sponsoring this forum and will not elaborate on this issue. For those wanting to start a company - I do not recommend trying to explain to your Auditor at the end of the year that your company's capital is all in your head. He might not find it very amusing.

Edited September 28, 2005 by ~G~