Setting Up A Business And Re-locating From Uk

[nealbambridge]

Hi - quite a few questions listed - so i would be most grateful for any replies !

I am from the UK and currently dating a Thai girl and we are looking to set up a Travel business together on one of the Thai islands.

I have a number of questions:

1. Do I need to employ a certain number of Thai nationals? Do I have to have a certain minimum turnover or profit per year? If I get a duplex property - is there any tax issues/benefits in living above the business - can it be put through the books?

2. My girlfriend has said that it will be my company and she will be one of the 7 shareholders. Can you advise on how best to split the shares - ideally i want as many as possible ! Can I have UK people as shareholders (family)? It will be all my money in the business so how do I best protect myself? (especially if I sell in the future) - is there any implications on type of business i.e. A Travel business

3. Can I apply for a work visa to remain permanent ( i.e. no visa runs) in Thailand as my business will be there. How best do I do this as I will arrive on a tourist visa and register my business once I have decided on the best location.

4. What cash must I have in a Thai bank Account? Is there any other good advice you can give about setting up a company?

5. I want to bring my Harley Davidson to Thailand - do I have to pay import duty or will they treat it as a personal item, as used and not for sale, so no tax payable. I I have to sell it - can I import prts to build a new one and not pay duty?

6. I understand about buying property and the 30 year lease, but If I get married am I or my wife(being a Thai Nataional) able to purchase land and property outright with no lease or finacial issues?

7. Will I need to get an international driving licence?

8. If I get married which documents do I need? ( I am divorced)

9. What is the situation with tax? I have a UK property with rental income and I will be running a Thai business.

10. What is the situation with my pensions - I have 2 UK pensions, can I draw on them in the future in thailand or are there any limitations

11. Savings - I am selling a second property to finance my business but will have funds left. Am I better putting these in an offshore account. If so, where?

Many Thanks for your help.

Neal.

[Indo-Siam]

My company does not handle situations outside Bangkok. But, here are a few answers:

1. In most cases, if you want a long-term entry permit (so that you don't have to make visa runs every 90 days), you need to be paying at least social fund payments for four Thai employees. You company can lease your building and you can live there - I think you are supposed to "monetize" that benefit for tax purposes, but no one does, and Thai Revenue Dept. enforcement at that level is non-existant. By third year, you must show at least modest profit (approx 8,000 baht per month) to keep getting renewal of work permit and entry permit extension. At end of each year, your balance sheet must be healthy enough to suggest that you are able to pay salaries (including your own), rent, taxes, etc. for the coming year.

2. If you feel that you can get an Alien Business License, you can then own all but six shares. Tourism-related businesses are not assured of getting an ABL. Otherwise, you can own 50% of shares minus one share - then split the rest among Thais. You can draft articles of incorporation that give you more than 90% of voting control - but in return, other shareholders have preference in case of liquidation, and in payment of dividends.

3. You can get a work permit. To do so, you MUST have a non-immigrant visa issued by a Thai diplomatic post outside Thailand. Once you form company, it can issue you an employment letter that allows you to get Class B visa in neighboring country. You then obtain work permit, and then use work permit to justify one-year entry permit extension, These can then be renewed annually - without you ever again needing to leave Thailand. Once you have an extended entry permit, NEVER leave Thailand without first obrtaining a re-entry permit.

4. In theory, you must have 2,000,000 baht (in most cases) paid-in capital to obtain a work permit. But - in Bangkok, they don't check pay-in. They will sometimes even issue a work permit with just 1,000,000 baht registered capital. But they will typically not issue an entry-permit extension without 2 million baht at least registered. This past week, we had a work permit application rejected for a client who had increased capitalization from one million to two million baht at the company registration office, but whose VAT REGISTRATION record still listed 1,000,000 baht capital. We were stunned - this is so petty as to be ludicrous. But -we had to go obtain the change to VAT record. So - things can change from week to week. You need capitalize only once - document that - and can then do what you want with money,. But - at end of first year, make sure that current assets on your books look reasonable for continuing your business, or you may face problems with renewals.

5. There are provisions for bringing in motorcycle for personal use. I'll let someone else address this one - I know there was recently a post that provided a link to a good summary about all imported used vehicles entering Thailand.

6. I'll defer this one to others. In short you cannot own land (dirt). Your Thai wife can - but you cannot inherit it. Your company can own land, if majority Thai owned.

7. If you want to drive in Thailand, you may use an intenational license obtained outside Thailand, or obtain a Thai driver;s license. You need separate licenses for car and motorcycle. There are also guys who sell UN driver's licenses here - someone else can cover that.

8. You need copy of divorce decree. I registered my marriage in Mukdahan (out near Pluto) - and they were massively confused - so I suggest getting a certified Thai translation of your divorce documents - particularly if you will register in middle-of-nowhere. One other tip - if your wife had been previously married, and ever changed her name, you can get trapped in a situation where various of her documents are in different names - this generated a total goat-screw in my case - we had to end up summoning the village headman from 40 km away to unscrew the mess at Changwat HQ. Bureaucracy rules in Thailand, and pettiness is a polished art here - defy at your own risk.

9. & 10. Tax and Pensions - I am not up on Thai-UK reciprocal tax treaties - I know there is one. IMHO, most Thai advisors here are nitwits who give out advice without knowing what they are doing. I suggest working with a foreign professional from your own country. Pick a successful, established one - not a "bottom feeder".

11. I'll let someone else address offshore accounts.

Good Luck!

Indo-Siam

[Digger]

Hi - quite a few questions listed - so i would be most grateful for any replies !

I am from the UK and currently dating a Thai girl and we are looking to set up a Travel business together on one of the Thai islands.

I have a number of questions:

1. Do I need to employ a certain number of Thai nationals? Do I have to have a certain minimum turnover or profit per year? If I get a duplex property - is there any tax issues/benefits in living above the business - can it be put through the books?

2. My girlfriend has said that it will be my company and she will be one of the 7 shareholders. Can you advise on how best to split the shares - ideally i want as many as possible ! Can I have UK people as shareholders (family)? It will be all my money in the business so how do I best protect myself? (especially if I sell in the future) - is there any implications on type of business i.e. A Travel business

3. Can I apply for a work visa to remain permanent ( i.e. no visa runs) in Thailand as my business will be there. How best do I do this as I will arrive on a tourist visa and register my business once I have decided on the best location.

4. What cash must I have in a Thai bank Account? Is there any other good advice you can give about setting up a company?

5. I want to bring my Harley Davidson to Thailand - do I have to pay import duty or will they treat it as a personal item, as used and not for sale, so no tax payable. I I have to sell it - can I import prts to build a new one and not pay duty?

6. I understand about buying property and the 30 year lease, but If I get married am I or my wife(being a Thai Nataional) able to purchase land and property outright with no lease or finacial issues?

7. Will I need to get an international driving licence?

8. If I get married which documents do I need? ( I am divorced)

9. What is the situation with tax? I have a UK property with rental income and I will be running a Thai business.

10. What is the situation with my pensions - I have 2 UK pensions, can I draw on them in the future in thailand or are there any limitations

11. Savings - I am selling a second property to finance my business but will have funds left. Am I better putting these in an offshore account. If so, where?

Many Thanks for your help.

Neal.

Blimey a heap of questions. Adding to previous answer, once you leave the UK and become non resident for tax, your UK income are still taxable, however they may fall under the tax thresholds in the UK, dependant upon their value. Also some people I know have taken out a repayment mortgage on a proportion of the equity in the property, moved that offshore and then counted the interest payments as a tax deductable. Never done it myself and dont know how beneficial it is, but sounds an interesting scenario.

If you do leave UK for tax purposes, I think most British expats open up accounts on the Isle of Man or Jersey - everything is still in sterling and you get a degree of protection, albeit not as much as the UK banking system, however most of them have been earning in Asia and moving it back which does not sound quite the same as what your (initially) planning on doing.

Interesting observation about wishing to go into the travel business. One guy I know in a senior and well paid position is keen to get out citing low/non existant margins and huge liabilities with consumers and very high costs of funding- seems the world and his wife have set up in the travel business - I would suggest caution with this particular business line if you wish to make any money.

Hope this helps