Company Formation For Software Development Consulting Business

[hernik]

Hello,

I'm a Norwegian staying in Thailand on a Non-O marriage visa (married to a Thai).

I'm currently planning what it takes (practicalities and financial requirements) to form a company in Bangkok to hire 4-8 (possibly more on need) Thai software developers

and sell consulting services to Norwegian customers. I have a partner in Norway which will handle Norwegian side of business. In essence the Thai company will be outsourced development office for the Norwegian side consulting firm. I'm to be the manager/techincal project manager for this company so will need a work permit.

Since finding the right staff is critical for this kind of business we need to be able to hire people on a trial basis, so I'm considering using a recruitment agency

like Adecco to find talent on a try-and-hire basis in the beginning.

Would staff hired through an agency, or hired independent contractors, count towards the requirements for a work permit?

What would typical startup costs be with regards to company formation (how much of the registered capital must be paid up-front), office space rental, and recruitment be?

What other company/employee costs would there typically be, besides office rent and employee salaries?

What timeframe is normal for complete company formation?

Thankful for help/advice

H

[CDB]

Hi Hernik,

The first and most important thing you need to do is to get approved for BOI privileges. This can allow you reduced requirements for work permits and starting capital as well as 100% ownership. Or get tax breaks. It's actually easier to secure these for a theoretical future company than for an existing one.

See http://www.boi.go.th/index.php?page=index&language=en and go in to talk with them. You don't need a lawyer or consultant -- you can work directly with them.

CDB

[hernik]

Thanks for the feedback, but I understand that BOI approval is a lengthy process, involving much paperwork. Looking at the procedures at the BOI website makes me shudder.

Sunbelt, do you have any comments?

[hernik]

Oops, I just discovered I posted this to the wrong section, intended to post to "Business Services & Information" sub-forum.

[GreenSnapper]

I'd rather doubt you will find 8 qualified engineers in Thailand who can communicate well in English and deliver proper competitive results.

But you may have done better research than me.

[KevinShine]

Well, I found famous business Consulting service providing company and would like to share. Check this: http://www.ajoft.com/services/business-consulting/ and have word with them. Hope it might be useful.

Thank you.

[Sunbelt Asia]

So long as the Thai staff are listed on your Thai company's social funds list as well as PND 1 (Employees' salary withholding tax filing), then they would be counted towards your work permit application.

If you are outsourcing the work to other firm, it is likely that that programmer is listed as the employee of the outsourced firm (not yours).Even though he/she is working with you, but he/she is listed as other company's employee..

Start up cost of setting up a company for one expat employee then your company would need to have 1 million Baht of registered capital + 2 Thai employees (this is only for the work permit case), but if you the Extension of Stay based on marriage (with the use of 40,000 Baht salary, then you will need to have 4 Thai employees). So, it should be around 70-80k. In order to get a work permit, the registered capital must be recorded that it has been paid up 1 million Baht.

Office space would vary depending on location, prime central Bangkok areas like Sukhumvit, Silom, would be more costly than the outskirts.

Recruitment fee, it all depends on the recruiting firm's policy, but usually it is equivalent to 1 month salary of the employee recruited by them.

Costs of running the business would be too variable to predict, it would depend on number of employees, rent etc etc.

If all documents could be provded without any delay by your landlord and you have the Thai employees ready to enrol then the process should be completed in 45 days.

[sunbeltlegal][/sunbeltlegal]