Bht2million Capitalisation

[GuestHouse]

OK I understand that I would need to capitalize a private company to the value of Bht2m in order to obtain a work permit via the company.

But how is this defined?

Do I need to prove the capitalization is from overseas and if so how?

Is the capitalization to be shown as invested capital i.e, money spent on the company property/facilities or is capital in a company account sufficient?

When is this capitalization measured? I would hardly put money into a company that does not yet exist, and I can't establish the company until I have the work permit? (Or am I misunderstanding something there?).

[Indo-Siam]

Hello -

At this time (October 2005),having 2,000,000 baht capitalization involves simply registering 2,000,000 baht in capital - which involves paying an 11,000 baht capita;l registration fee.

By Thai law, you are supposed to collect/pay-in at last 25% of this amount within 90 days - but there is no mechanism to enforce this.

At present (October 2005), booth a work permit and an extended entry permit may be obatined on the basis of having 2,000,000 baht registered capital

This means that - in your company registration summary, (Bor Or Jor 5 form), number of shares issued times par value pershare is 2,0000,000 baht or greater.

Cheers!

Steve Sykes

Managing Director

Indo-Siam Group

Bangkok

[email protected]

www.thaistartup.com