Open New Company In Los

[ChrisP]

I'm planning to do the Retirement Visa thing in 2006, but would still do some consulting work OUTSIDE the Kingdom - and have the income paid into my bank in the USA. (Then yes, make transfers into my LOS account to keep the Visa Imm status ok.)

But, just wondering.. What are the rules, monies etc if I decided to start my own one-man Biz inside LOS..?

ChrisP

Mod.

[Sunbelt Asia]

As you are an American, you can form a sole proprietorship under the Amity treaty. If you concern about liability, form a Thai limited company with you being the majority foreign owner. The registered capital must be 2 million Baht( 1 million Baht if you are married to a Thai)...By the way, this company will need to have registered capital of 3 million by August 2009. The registered capital does not need to be paid up in cash. It can be non cash as well even a loan from the director.

You do not need to have 4 Thais employed to obtain a work permit.

www.lawyer.th.com

[ChrisP]

As you are an American, you can form a sole proprietorship under the Amity treaty

Many thanks Sunbelt. But I don't know what this is, or what the rules are for it...

Is it the same as the Thai limited company you describe too..?

ChrisP

[Sunbelt Asia]

A sole proprietorship is an unincorporated business owned by one natural person whose liability is unlimited. All the proprietor's assets, both business and personal, are subject to attachment or other legal action which may be brought against the business.

The Treaty of Amity and Economic Relations between the United States of America and the Kingdom of Thailand - commonly known as the Treaty of Amity - was signed on May 29, 1968. There are two major benefits of the treaty:

• The Treaty allows Americans or American companies to maintain a majority shareholding or to wholly own its company, branch office or representative office located in Thailand,

• American companies receive national treatment. That is, they may engage in business on the same basis as Thai companies, and are exempt from most of the restrictions on foreign investment imposed by the Alien Business Law of 1972.

Some restrictions on American investment still exist. They include:

Owning land;

Engaging in the business of inland communication;

Engaging in inland transportation and communication industries;

Engaging in fiduciary functions;

Engaging in banking involving depository functions;

Engaging in domestic trade in indigenous agricultural products;

Exploiting land or other natural resources

www.lawyer.th.com

[ChrisP]

Ah, ok.

I am the Sole Proprietor of my (one-man) un-incorporated design business in the USA. Does this Treaty mean I can easily open a "Branch Office" in Thailand.. without millions of Baht to start up..?

ChrisP

[Indo-Siam]

Greg -

My staff just spent two days and three trips to Work Permit office, trying to get a work permit for US Amity Treaty sole proprietor.

Final decision, without any doubt in their mind - a sole proprietorship is not an entity that is eligible to sponsor a work permit. Period. Decision by the deputy head of the office (or higher).

They went over every detail of a Thai/English three page description of every possible entity and method that was eligible for a work permit and "sole proprietor" is not an eligible entity (a Thai limited partnership is an eligible entity).

This is in keeping with the Thai theory (which is exactly opposite the western theory): In Thailand, EVERYTHING is forbidden/illegal, unless there is a specific law or regulation stating that it is allowed - and providding a procedure checklist for processing the action.

Over the past several years, I have for sure known several American Sole Proprietors here who had work permits. But - it is now evidently not possible for a sole proprietor to get such a thing - or, at least, not if this is their first time legally employed in Thailand. It did appear that someone who had an existing WP as a SP might be able to renew - based on one of the altenate eligibility clauses.

It amazes me that you can register a sole proprietorship, and get it certified for Thai-US Amity Treaty status, but you cannot get a work permit to work for - yourself!

I am not sure what date was associated with the new listing of work permit eligibility rules - it appeared to be newer than October 2004, but I don't know how recent.

I would be interested to know - from any American sole proprietors WITH work pemit who frequent this board - what the date was for issuance of your initial Work Permit - particularly if this was within the last six months, and if you did not have prior legal earnings histiry inside Thailand.

Cheers!

Steve

Indo-Siam