Nomadd Posted June 7, 2011 Share Posted June 7, 2011 Hi all, My girlfriend wants to open a small business selling food and drinks. She is uneducated (although certainly not stupid) and I am trying to instill within her a sense of legal obligation. I asked her what the law requires and she said, "don't worry. I've done it before". I said i know that but I want you to be aware of what the law says. If you then choose to do different that is a calculated risk, not ignorance. She does not understand that concept. She keeps repeating that she's done it before and no problem. I asked her when she did it before did she speak to anyone about the legal requirements for a small business and she said yes. I asked what they discussed and she said that she was advised that as long as she doesn't put a sign up she doesn't have to pay tax. I sighed and left it at that. So the point of this post is to ask if anybody knew what the legal requirements are for a Thai national to set up a small business selling food from our own property. Or even a link to a website that explains it would be fantastic. Likely she will be fine but like i said, a calculated risk is a lot different to blind ignorance and an unwillingness to put any effort into knowing the rules. I just don't want anything bad to happen to her! In her mind as long as she doesn't put up a sign she is invulnerable to the law (heh). Something tells me the rules are a little more stringent Link to comment Share on other sites More sharing options...
Sunbelt Asia Posted June 7, 2011 Share Posted June 7, 2011 A Thai national can open a small business in her home, but to do so legally she should apply for a Sole Proprietorship (Commercial Registration) at the local District Office (amphur). She could also apply for a food license at the District Office. It is the resonsibility of the Thai business operator to declare and file tax half yearly and yearly. Additional licenses may be requirde depending on the extent of her business, such as selling alcohol beverages, cigarettes and to play music at her shop. If she decided to have a sign in front then she would also be liable for an annual sign tax. Sign taxes are calculated by the size of the sign; length multiplied by width using the basis of square centimeters. The following are the rates of the sign tax per 500 Square centimeters · 3 Baht for signs with Thai alphabet only · 20 Baht for signs with mixture of Thai alphabet and foreign alphabet / pictures / other signage · 40 Baht for signs without Thai alphabet or with Thai alphabet, but located under the foreign alphabet The Sign tax must be filed and submitted to the local revenue office (using the form Phor Por 1). [sunbelt][/sunbelt] Link to comment Share on other sites More sharing options...
Nomadd Posted June 7, 2011 Author Share Posted June 7, 2011 Excellent thanks for the extremely informative reply. I'll have a chat with her later Link to comment Share on other sites More sharing options...
tombkk Posted June 7, 2011 Share Posted June 7, 2011 There is a limit under which she does not have to file for VAT. There is a limit under which she does not have to file for a food licence (อย). In general, it is much easier to open a small business for Thai people in Thailand than it would be in the West. Link to comment Share on other sites More sharing options...
vont Posted June 7, 2011 Share Posted June 7, 2011 it also depends very much on where you are and where her stall is going to be setupped: within your own property line? or in front of your house but on the shoulder of the street? there are thousand and thousand of such stalls all over thailand from cm to sadoaw.... those small stall owners just setup shops however, wherever and whichever.... nevertheless, if you are within the city limit, then you really ought to apply for a license for her.... officials are much more stringent within city limit on this front, ok? from past experiences, if the daily income is no more than 1k, and you are not within the city limit and not in front of the police station or such buildings, you ought to be pretty safe from prying officials.... however, if i were you, i would spend a few thousand and get her a legitimate license which she can proudly show all her friends.... and you know exactly what you ought to do, right, as a non-resident in thailand....? Link to comment Share on other sites More sharing options...
Nomadd Posted June 8, 2011 Author Share Posted June 8, 2011 There is a limit under which she does not have to file for VAT. There is a limit under which she does not have to file for a food licence (อย). In general, it is much easier to open a small business for Thai people in Thailand than it would be in the West. Gotcha thanks. it also depends very much on where you are and where her stall is going to be setupped: within your own property line? or in front of your house but on the shoulder of the street? Yet to be determined but she has a few options she is considering. there are thousand and thousand of such stalls all over thailand from cm to sadoaw....those small stall owners just setup shops however, wherever and whichever.... nevertheless, if you are within the city limit, then you really ought to apply for a license for her.... officials are much more stringent within city limit on this front, ok? Sure, the intention (at least on my part) is to get the appropriate licences. and you know exactly what you ought to do, right, as a non-resident in thailand....? With respect to what? Her business? Link to comment Share on other sites More sharing options...
vont Posted June 8, 2011 Share Posted June 8, 2011 (edited) There is a limit under which she does not have to file for VAT. There is a limit under which she does not have to file for a food licence (อย). In general, it is much easier to open a small business for Thai people in Thailand than it would be in the West. Gotcha thanks. it also depends very much on where you are and where her stall is going to be setupped: within your own property line? or in front of your house but on the shoulder of the street? Yet to be determined but she has a few options she is considering. there are thousand and thousand of such stalls all over thailand from cm to sadoaw....those small stall owners just setup shops however, wherever and whichever.... nevertheless, if you are within the city limit, then you really ought to apply for a license for her.... officials are much more stringent within city limit on this front, ok? Sure, the intention (at least on my part) is to get the appropriate licences. and you know exactly what you ought to do, right, as a non-resident in thailand....? With respect to what? Her business? with respect to.... keeping your good concerned self.... completely out of the picture.... won't even come around to help her tidying up or sweeping or whatever.... that can be construed by a jealous outsider that you are being employed and engaging in a trade that most locals can easily do.... K? that is what i meant to say. good luck, good fortune and have plenty of joy and fun.... behind the scene, alright? cheers Edited June 8, 2011 by vont Link to comment Share on other sites More sharing options...
Nomadd Posted June 8, 2011 Author Share Posted June 8, 2011 and you know exactly what you ought to do, right, as a non-resident in thailand....? With respect to what? Her business? with respect to.... keeping your good concerned self.... completely out of the picture.... won't even come around to help her tidying up or sweeping or whatever.... that can be construed by a jealous outsider that you are being employed and engaging in a trade that most locals can easily do.... K? that is what i meant to say. good luck, good fortune and have plenty of joy and fun.... behind the scene, alright? cheers Ahh yes I understand that bit i've told her already i will have nothing to do with the running of it. That is between her and her friends. Thanks a lot for the heads up though And thanks for all responses. It's been very useful. She now understands and is excited to begin! Link to comment Share on other sites More sharing options...
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