Starting A Business In Thailand Questions.

[bradm]

Greetings,

I have been all around the net trying to find DIRECT info on starting a business in Thailand and I have not found any. Hopefully somebody here could help me.

I am a partner with a property development company in Canada and wish to get involved in delelopment in Thailand. My main goal is to purchase land and develop vacation rentals in moderately priced regions.

I already know somebody in Thailand, but haven't approached them about starting the business before I understand the legalities involved.

I would like to start a partnership or limited partnership, preferably have the registered business location from out of their home. I do not want my share of the Thailand business owned by my company in Canada for legal reasons.

What are the steps specific rules/regulations and hoops I will need to jump through to get the business off the ground? IE Asets needed, percentage of ownership issues, fees, laws pertaining to land ownership, laws pertaining to employees, laws pertaining to monetary dispursement from Thai bank accounts to Canadian banks,

Laws pertaining to partnership agreements IE Does Thai law supercede partnership agreements.

I mention this becasue if a Thai citizen owns the majority of the company, does that make them entitled to the majority of the income and assets if a partnership Areement states that they don't? In Canada, the Partnership agreement overrules the BC Partnership Act . This means that anything not listed or covered in the agreement would fall under the act....The governmental Act acts rather as a default lidigation device rather then a over-riding document. I guess what I am asking is that will my interests be secure since I will be supplying the majority of investment capital, while another individual will hold majority control over the business and it's assets. Does Thai law supercede any legal agreement that we the partner reach? Can my partner run to the thai government and get them to nullify any secondary agreement we had together?

Thanks in advance,

Brad.

[Guest DragonStar]

I already know somebody in Thailand, but haven't approached them about starting the business before I understand the legalities involved.

<{POST_SNAPBACK}>

Please, do approach those guys, and get an idea of what kind of business is on schedule. There'll be just about 10 trillion, billion legalities involved in a totally unspecified Thailand based business.

What are the steps specific rules/regulations and hoops I will need to jump through to get the business off the ground?

<{POST_SNAPBACK}>

... it all depends ... Most people prefer to to spend their time in other ways, than trying to figure out what kind of hopeful Thomas, you might happen to be ...

What is it - specifically - you've got in mind ?

[udon]

try the SEARCH button up the top of this page... all will be revealed.

[Guest DragonStar]

try the SEARCH button up the top of this page... all will be revealed.

<{POST_SNAPBACK}>

... You do have some terminating "end-of-hopeful-but-totally-ignorant-Thomas-thread" punch lines scattered around. Good work, udon!

Let's all hope those hopefull Thomas'es don't take it as an offence, but take it as an advice to do some minimum of homework on their own, before adressing this super-qualified forum.

Give us some details, bradm, ... you'll get your answers to those details ---- But nobody here wants to write a book on Thai laws (however, I'm sure quite a few could, if someone paid them).

[udon]

try the SEARCH button up the top of this page... all will be revealed.

<{POST_SNAPBACK}>

... You do have some terminating "end-of-hopeful-but-totally-ignorant-Thomas-thread" punch lines scattered around. Good work, udon!

Let's all hope those hopefull Thomas'es don't take it as an offence, but take it as an advice to do some minimum of homework on their own, before adressing this super-qualified forum.

Give us some details, bradm, ... you'll get your answers to those details ---- But nobody here wants to write a book on Thai laws (however, I'm sure quite a few could, if someone paid them).

<{POST_SNAPBACK}>

Thank you, I try to be helpful.

[bino]

Greetings,

I have been all around the net trying to find DIRECT info on starting a business in Thailand and I have not found any. Hopefully somebody here could help me.

In addition to searching the forum which will indeed reveal all your answers, you could also visit the websites / contact Sunbelt Asia (www.sunbeltasia.com) or Indo-Siam (thaistartup.com) These companies are sponsors of this forum, and helping people start businesses here is what they do very well.

[~G~]

You ask the right questions, but the answers are probably to long to be answered here fully. In addition to the suggestions above, I have seen a book in English which summarizes the main issues in starting a business here, including tax and labour issues, I think in Asia books. It's called something like "A guide to Business Law in Thailand" and it also includes a translation of the main relevant forms to English.

It will probably not replace a sound legal advice from an expert, but can give you some idea.

...And then again, I do believe this forum is an appropriate place to ask such questions. Shortly:

- To secure your interests, you should be looking at forming a Thai Company Limited rather than a partnership.

- Articles of incorporation can define voting rights, prefered shares, etc., in a simlar way you described the Canadian way does.

- There are additional legal ways to secure your rights as a main investor.

Edited November 29, 2005 by ~G~

[Sumitr Man]

This is also a good link on "how to do business in Thailand"

http://www.boi.go.th/english/how/company_establishing.asp

Board of Invesment.

Suggest you take a look around and then come back with any more specific queries you may have.

SM

[bradm]

You ask the right questions, but the answers are probably to long to be answered here fully. In addition to the suggestions above, I have seen a book in English which summarizes the main issues in starting a business here, including tax and labour issues, I think in Asia books. It's called something like "A guide to Business Law in Thailand" and it also includes a translation of the main relevant forms to English.

I understand I may have been asking a lot but I have found websites to be incomplete and some contradict eachother. I will try to get my hands on that book however. Thanks.

It will probably not replace a sound legal advice from an expert, but can give you some idea.

Unfortunately I cannot aquire legal council from a Thai lawyer. I probably could but it would require a trip there.

...And then again, I do believe this forum is an appropriate place to ask such questions. Shortly:

I agree. I read over some of the posts prior to registering and found the people here most knowledgable.

- To secure your interests, you should be looking at forming a Thai Company Limited rather than a partnership.

I understand i will need 7 investors and 4 of those investers must be Thai. I believe I will also need to bring in 5 million Baht over a five year period and employ 4 Thai employees and must keep my investment capital at 2 million for each work contract. Am I right? I am working off memory from what I read through prior to posting here.

- Articles of incorporation can define voting rights, prefered shares, etc., in a simlar way you described the Canadian way does.

A so it is like a Limited Corporation in Canada. A seperate legal entity but is privately owned and controlled rather then a Corporation that is traded publicly.

Okay, You pointed me in the propper direction. I will concentrate my research to Limited Companies.

Thank you very much.

[bradm]

This is also a good link on "how to do business in Thailand"

http://www.boi.go.th/english/how/company_establishing.asp

Board of Invesment.

Suggest you take a look around and then come back with any more specific queries you may have.

SM 

<{POST_SNAPBACK}>

Thank you. This is actually what I needed after responding to G. Info on incorperation.

[Sunbelt Asia]

understand i will need 7 investors and 4 of those investers must be Thai. .

If you are involving land it is best to have at least 4 Thais and only own 39% of the shares as a foreigner.

believe I will also need to bring in 5 million Baht over a five year period and employ 4 Thai employees and must keep my investment capital at 2 million for each work contract.

No you do not need to bring in 5 million over a 5 year period. You are confused with a Rep office. The requirement with a limited company is 2 million Baht per work permit ( unless you are married to a Thai then its 1 million) The registered capital does not have to be 100% cash, just 25% the other 75% can be a director loan, equipment, inventory, etc.

You do not need 4 Thai employees unless you are looking to get a long term visa based on business. If your objective is to be a business consultant than you only need 1 Thai employee per work permit. Can't meet that criteria, then zero employees are ok as long as you do a visa run every 90 days and extend your work permit.

Our company does many long distance company setups without the MD being in Thailand. Feel free to contact us.

www.lawyer.th.com

[bradm]

If you are involving land it is best to have at least 4 Thais and only own 39% of the shares as a foreigner.

No you do not need to bring in 5 million over a 5 year period. You are confused with a Rep office. The requirement with a limited company is 2 million Baht per work permit ( unless you are married to a Thai then its 1 million)  The registered capital does not have to be 100% cash, just 25% the other 75% can be a director loan, equipment, inventory, etc.

You do not need 4 Thai employees unless you are looking to get a long term visa based on business. If your objective is to be a business consultant than you only need 1 Thai employee per work permit. Can't meet that criteria, then zero employees are ok as long as you do a visa run every 90 days and extend your work permit.

Our company does many long distance company setups without the MD being in Thailand. Feel free to contact us.

www.lawyer.th.com

This is great! thank you.

I skimmed you site. The prices are very reasonable considering it costs people in Canada around $4000 CND (fees/legal) to start up a limited corporation and that isn't with people to do it for you. It says you have hundreds of locations around the world. Do you have any offices in Vancouver, Canada?

I guess my last questions have to do with property.

I will need to get an accurate feel for the real estate market in Thailand. There are a lot of outdated sites that list stats prior to 2005. Can somebody point me to any sites that have stats, perferably by region and recent?

I also need some good real estate listings. I have found a lot of listings for expensive xpat housing, rentals and vacation properties but I cannot find any listings that target the Thai population. With the cost of living being so low I wouldn't expect citizens to pay 1500 US a week for lodging, and these are the only listings I can find.

And thridly, what is the going rate (monthly) for office rentals in Bangkok. perferably small but in a relatively nice area.

If you can help me (again) it would be appreciated (again).

Thanks in advance.

[~G~]

I also need some good real estate listings. I have found a lot of listings for expensive xpat housing, rentals and vacation properties but I cannot find any listings that target the Thai population. With the cost of living being so low I wouldn't expect citizens to pay 1500 US a week for lodging, and these are the only listings I can find.

You might want to check out the Accomodation Finding subforum of Thaivisa.com, mostly based on www.mrroomfinder.com. It's a great site.

1,500 US a week? there are listings in Bangkok of less than 2,000 baht a month.

And thridly, what is the going rate (monthly) for office rentals in Bangkok. perferably small but in a relatively nice area.

Large range. In proper office buildings, not too far from the center - from 350 to 800 baht/sqrm.

Edited November 29, 2005 by ~G~

[Sunbelt Asia]

Do you have any offices in Vancouver, Canada?

SUNBELT of Vancouver Island

Greg Kells Office Mgr.

920 Johnson Street

Victoria, British Columbia V8V 3N4

P: 250-361-3003

F: 250-361-3004

[email protected]

SUNBELT of Vancouver Mainland

Pino Bacinello office Mgr.

220-2121 152nd St.

Surrey, British Columbia V4A 4PI

P: 604-538-5478 or Toll Free 1-877-538-5478

F: 604-538-5477

[email protected]

www.sunbeltbc.com

As you can imagine only are firm works with Thai companies, work permits, etc but feel free to call Greg Kells and ask about us.

I have found a lot of listings for expensive xpat housing, rentals and vacation properties but I cannot find any listings that target the Thai population.

www.easyhorpak.com

And thridly, what is the going rate (monthly) for office rentals in Bangkok. perferably small but in a relatively nice area.

300 Baht sqm in a Class B office building.

www.lawyer.th.com

[Sunbelt Asia]

Here is a apartment as well that is less than 5,000 Baht per month.

http://www.geocities.com/ap_richland/apartment.html