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

[Sunbelt Asia]

If you would like to open your own company in Thailand it is necessary that it be done through a Thai entity, of which the easiest and safest one to set-up for foreigners is a Thai Limited Company. A Thai limited company will allow you to secure immigration status for your staff, or yourself, by allowing Visas and Work Permits. It will also allow you to invoice clients locally and abroad. Your company would then be subject to local corporate profit tax and social security tax for your Thai staff.

Having Thai staff registered into the social security system is, as you highlighted, one of the requirements of the Ministry of Labor for a Work Permit application. Those Thai staff needs to be registered through your own company, which will not be achievable indeed if they are outsourced employees working on a placement basis. I would suggest that you try other recruitment channels, or simply comply with the 4 month standard probation period which already gives some flexibility for terminating and replacing employees within this initial time scale.

Price scales for setting-up a Thai Limited company would range from 1,000 USD up to 4,000 USD or more, depending on the trade being engaged along with specific licensing, the number of Foreign Workers that will require Work Permits, and of course the company structure itself with its working capital and organs to be put in place. Office rental costs can usually be minimized at startup by using a shelved unit in a business center during the company formation, which can be as short as one week for a simple 100% Thai company up to 2-3 month for an Amity, or a BOI (Board of Investment) licensed structure.

Reading your post and the business activities you described I think the Board of Investment would be an option worth exploring. The BOI was set up to promote investment in Thailand by providing privileges to local companies or foreign entities planning on incorporating under Thai law that perform select activities. I believe yours would fall under the category: “Computer program (software) design and development“. Some of the key advantages of applying for this certificate would be the permission to operate under 100% foreign ownership, the permission to bring in as many foreign technicians and experts as you need, and corporate tax holiday up to 8 years.

In ordero identify the best structure for your business operations and spell out which category the trade will fall under it, it would be great if you could email us a description of the main lines of your business plan in terms of products and services you will provide, to which clients, how the invoicing will be done, and what types of labor you anticipate your employees to provide.

Alternatively, feel free to call and set up an appointment for a free consultation

[sunbelt][/sunbelt]