Sole Proprietorship And Work Permit

[affpartner]

In my continuing search for 100% legally earning money with my own websites through affiliate programs, I am looking at Sole Proprietorship as an option and would like to ask a few questions.

First I will again list something about myself.

- Dutch national, married to Thai, Non-Immigrant O visa for supporting wife by having 400.000 THB in bank account for 3 months and living 365 days per year in Thailand.

- Earn money through my own websites by displaying products of other companies, those other companies pay me money when a visitor from my websites clicks on a link and end up performing a desired action on the website of those other companies. Meaning that nothing is either sold or bought through me or my websites.

- Am working at home on my laptop without any employees.

- Since I do not need an office nor employees nor a Business visa to be able to stay in Thailand, it doesn't make any sense at all to start a Thai Limited company.

- Since nothing is either bought or sold on my websites, there is almost no chance or possibility that I am liable for anything related to my business/websites, so the major drawback of a Sole Proprietorship (personal liability) is of no concern to me.

- What I do is not listed on any of the lists. Not on the list of "Businesses which aliens are not permitted to operate for special reasons" nor on the "Royal Decree Stipulating Work in Occupations and Professions Prohibited to Aliens B.E. 2522 (A.D. 1979)". See last few pages of http://www.boi.go.th/english/download/business_analysis/26/foreign-investment-laws.pdf

Questions:

1) Since my business activity is not listed as a "Businesses Subject to Restrictions" nor is my occupation listed as "Occupations which are closed to foreigners", I assume that the Foreign Business Act of 1999 is not applicable to me. Is that correct?

2) According to The Alien Employment Act B.E. 2521 (A.D. 1978), I still need a work permit. Is that correct?

3) Can I start a Sole Proprietorship as an alien? If yes, what are the requirements?

4) Can I apply for a work permit when starting my own Sole Proprietorship? If yes, what are the requirements and are Thai employees necessary?

5) If #3 is not possible, is it possible for my wife to start a Sole Proprietorship and hire me? If yes, then what are the requirements for a work permit for me and are other Thai employees necessary?

6) Is it generally possible to apply for a work permit while keeping and continuing my Non-Immigrant O visa for supporting wife? Or is at all times a Non-Immigrant B visa necessary to get and keep a work permit?

7) The tax on income from a Sole Proprietorship is Personal Income Tax. Is that correct?

8) If #7 is correct, then I assume that tax is based on "Type of Income: F", "Income derived from business, commerce, agriculture, industry, transport, or any other activities not specified in a. to e." as per http://www.rd.go.th/publish/6045.0.html Is that correct?

9) According to above for "Type of Income: F", deductions for calculating PIT are "actual expense or 65% - 85% depending on the types of income". What will be used to calculate my deductions, in my specific case, is that actual expense or 65% - 85%? If it is the percentage based deductions, what is the exact percentage?

10) In line of #9, lets say my Taxable Income before deductions is 1.000.000 THB and the deductions are based on 85%, then my Taxable Income after deductions (lets forget Allowances for a moment) is 150.000 THB. Is that correct? If yes, then I would be Exempt from paying tax, correct?

Thanks very much and I apologize for the many questions...

[Sunbelt Asia]

Unfortunately List 3 of restricted occupations has the catch-all rule:

(21) Other categories of service business except that prescribed in the ministerial regulation

This is generally applied to most foreign owned businesses when other restrictions do not apply.

Foreigners generally cannot obtain a sole proprietorship, unless under the Amity Treaty, and most Labor Offices will not issue a work permit for a sole proprietorship, even if one owned by your wife.

Before taking any further steps to establish this kind of business you need to check with your local Labor office to determine if you can obtain a work permit first. Bangkok, for instance, will not issue a work permit for a sole proprietorship and reports are that many provincial offices will not either.

If not, then you will need to set up a Limited company with three shareholders, the majority of which must be Thai. There are basic steps to follow, including 1 million Baht in capitalization (since your wife is Thai) and social security paid on 2 Thai employees the first year and 4 the second year. Shares can be issued in such a way that you receive preferential shares giving you voting power over the Thai majority shareholders.

[sunbelt][/sunbelt]