Why Do You Even Drink?

[adjanmeyn]

The 2 million and the 7 shareholders are organized but I am not sure about the 4 emloyees.

- Do they have to be fulltime employees?

- Can they have a second job or be students who work partime on a small salary?

- Is there a minimum wage for them?

Thanks a lot for every answer.

Adjanmeyn

[bkkmadness]

If you don't need employees, why have them? You don't need them to set up a company.

[sierra01]

You need them if you want a work permit.

[bkkmadness]

You know, I don't think you do, it seems to be a bit of a myth, but since not I'm totally sure I'd let Sunbelt advise is probably better.

[sierra01]

If I'm wrong please tell me someone, I can save a bit of money by not employing staff I don't need.....anyway round the minimum salary/tax question?

[bkkmadness]

I think the 4 employees are needed if you want to apply for the non immi visa which gives you the option of leaving the country only once a year, whereas if you don't have the employees you have to get the non immi visa which requires you to leave every 3 months. It doesn't affect the work permit.

I remember being in a bit of panic thinking about this last year when I was enquiring about setting up a business and certainly didnt need 4 employees, in fact it would have screwed the whole plan to have to employ them. I contacted SunbeltAsia about this and Greg set me straight but as I said, verify this with them first as I haven't set up my company yet and don't want to give false advice.

adjanmeyn since your a newbie and might not know, Sunbelt is a sponsor on this site and will probably be here to answer your question, if not send him a PM.

[bkkmadness]

Right, done a bit od searching on this site, so heres a couple of threads for yoiu to read/mess with your head.

http://www.thaivisa.com/forum/index.php?sh...&hl=4+employees

http://www.thaivisa.com/forum/index.php?sh...&hl=4+employees

Hope it helps.

[Sunbelt Asia]

The 2 million and the 7 shareholders are organized but I am not sure about the 4 emloyees.

- Do they have to be fulltime employees?

- Can they have a second job or be students who work partime on a small salary?

- Is there a minimum wage for them?

Bkkmadness is correct.

No employees needed to form a company.

No employees needed to obtain a work permit.

No employees needed for a one year non immigrant visa.( you will need to do a visa run every 90 days)

No employees needed for an extension of stay based on investment, education or support of a Thai national.

However 4 Thai employees needed per extension of stay permit based on business, unless the objective of the business is "consultant or agent" then its 1 Thai employee per extension.

www.lawyer.th.com

[sierra01]

OK, I sit corrected! So really it's no employees and their costs and 3 monthly trips to the border for an in and out, or employees and a trip to Immigration every 3 months...which one is cheapest I don't know!

[Sunbelt Asia]

which one is cheapest I don't know!

Four Thai employees at a minimum of 5,500 Baht per month= 22,000 Baht

Four Thai employees with social fund= 1,100 Baht

Tax on 60,000 Baht versus 32,000 Baht = Approx 3,500 Baht

Wear and tear on the office = ???

Bonus for the year= ???

26,600 Baht per month times 3 months = 79,800 Baht

Second Option

Visa run every 90 days = 2,000 Baht.

Cheaper is the second option if you don't need 4 Thai employees.

www.lawyer.th.com

[bkkmadness]

Sierras gone off to sack his staff now!

[sierra01]

They're 'things that go bump in the night' staff, no problem handing out P45's! That changes Sunbelt's sums but still worthwhile, the only thing that puts me off is the 3 monthly nightmare at Poipet. The onlt time I've been there it was a nightmare, queue for an hour in the heat, pay here, pay there, pay somewhere else, and to top it all off the bus broke down on the way home!

[bkkmadness]

With that kind of cash your saving, if you book early enough, fly down to Singapore for the day/night and you're still well on top.

A trick for Poipet visa run, is leave late and never go on the weekend. If you get to the border at about 4 pm never a queue, it's all these people that insist on going at some mad hour in the morning that clogs it all up. And only pay once, for the visa, all that claptrap about paying to get back in the same day is a joke, and the stupid medical slips, just tell them its not happening, they'll be cool.

BTW, what is 'bump in the night' kind of staff?

Edited February 10, 2006 by bkkmadness

[thedude]

i'd go for the 4 employees.

1 driver/body guard/delivery guy

1 maid/tea lady

1 receptionist/ masseuse

1 personal secretary

i could live like a king.

[adjanmeyn]

Thanks for all the answers.

The company I open is an Import company. I want to be the managing director with full power even to be able to sign contacts with other companies.

For this my lawyer and accountant (trustworthy people) told me I need actually 6 employees, a company address and minimum salary of 35000 Baht a month for myself which leads to 1920 Baht Tax a month.

If I understand Sunbelt Asia right I only need the employees if I dont want to do a visa run every 3 month. Is there a address or internet site where I can download the law?

For what and why are the 2 million Baht needed? I thought it was one of the requirements for foreigners to become managing director.

Thanks for the answers.

[Hans Lankari]

Tax on 60,000 Baht versus 32,000 Baht = Approx 3,500 Baht

Sorry guys, maybe a stupid question but could someone explain me this part or give a link to somewhere?

Pretty important thing for me to understand just about everything on this matter.

[~G~]

Thanks for all the answers.

The company I open is an Import company. I want to be the managing director with full power even to be able to sign contacts with other companies.

For this my lawyer and accountant (trustworthy people) told me I need actually 6 employees,

Fire them. I got an Import/Export license for my compnay before I had any employees.

If I understand Sunbelt Asia right I only need the employees if I dont want to do a visa run every 3 month.

Right.

For what and why are the 2 million Baht needed? I thought it was one of the requirements for foreigners to become managing director.

2M baht company capital are required per work permit sponsored by the company, or 1M baht for foreigner married to a Thai.

Edited February 12, 2006 by ~G~

[adjanmeyn]

So you got the company and you are the managing director and the one who is selling your products and signing the contracts with thai companies?

Can I be the managing director and sign contract without te 2 million baht?

Sorry for asking again but the information I got in the last two month vary all the time.

[~G~]

So you got the company and you are the managing director and the one who is selling your products and signing the contracts with thai companies?

Yes.

Can I be the managing director and sign contract without te 2 million baht?

If you want to actively manage the company you need to have a work permit; you will not receive one if your company is not registred with 2M baht capital. You need to pay-in 25% of that capital within 90 days.

[Sunbelt Asia]

For this my lawyer and accountant (trustworthy people) told me I need actually 6 employees, a company address and minimum salary of 35000 Baht a month for myself which leads to 1920 Baht Tax a month.

Fire whoever told you this on 6 employees. They are sadly wrong.

If I understand Sunbelt Asia right I only need the employees if I dont want to do a visa run every 3 month.

Correct

Is there a address or internet site where I can download the law?

Please do a search, we translated the law in Nov 2004 in a post here on Thaivisa.com. If we are were wrong on this, someone would of pointed it out a LONG time ago. On this forum, we have been saying "no Thai employees required for a work permit" for almost 2 years.

For what and why are the 2 million Baht needed?

Its the law for the work permit. If you are married to a Thai, its 1 million Baht requirement.

I thought it was one of the requirements for foreigners to become managing director.

This is not correct. It is the requirement to get a work permit( unless married to a Thai and then its 1 million Baht per work permit) You can be the Managing Director of a Thai Limited Company with registered capital of 35 Baht( with no work permit)

Tax on 60,000 Baht versus 32,000 Baht = Approx 3,500 Baht

Sorry guys, maybe a stupid question but could someone explain me this part or give a link to somewhere?

Pretty important thing for me to understand just about everything on this matter.

If you are an American, Japanese or Aussie and were applying for the extension of stay permit based on business then the minimum salary for your nationality is 60,000 Baht.

If you are an American, Japanese or Aussie and were simply doing a visa run every 90 days with a work permit, no minimum salary is required per Immigration.

However the Labor Dept would like to see you had paid around 18,000 Baht in taxes the year before when you apply for renewal. This is not written anywhere, its only knowing what the Labor Dept is looking for. In order to pay 18,000 Baht a year in tax, your salary would be around 32,000 Baht per month.

If you do a visa run every 90 days, you save around 3,500 Baht in taxes and are still legal with a visa and a work permit.

www.lawyer.th.com

[~G~]

I thought it was one of the requirements for foreigners to become managing director.

This is not correct. It is the requirement to get a work permit( unless married to a Thai and then its 1 million Baht per work permit) You can be the Managing Director of a Thai Limited Company with registered capital of 35 Baht( with no work permit)

Yes, but will he be able to actively manage? He will need the work permit for opening a bank account, to get an import/export license, or to do any kind of actual work as a managing diretor in Thailand, won't he? (if not, I return my work permit on tuesday and stop paying the irritating renewal fees...)

Edited February 12, 2006 by ~G~

[JimmyGreaves]

Work permit needed to open a bank account for your own company are you sure?

You can open a personal bank account on a tourist visa, I did at SCB!

Edited February 12, 2006 by jflundy

[Sunbelt Asia]

This is not correct. It is the requirement to get a work permit( unless married to a Thai and then its 1 million Baht per work permit) You can be the Managing Director of a Thai Limited Company with registered capital of 35 Baht( with no work permit)

Talking about the law for registered capital of 2 million Baht. If this is required to be the MD? This is not required to be the MD of a Thai limited company, it can be as low as 35 baht. If you are the MD and not living in Thailand, you can manage the company. Many foreigners control companies that they are the MD which own houses and land with the only income being rental property.

If you need a work permit, then its 2 million Baht register capital or 1 million Baht if married to a Thai.

But if he is doing any type of work inside Thailand( even if he is thinking of working) get a work permit.

Work permit needed to open a bank account for your own company are you sure?

You can open a personal bank account on a tourist visa, I did at SCB!

"G" is talking of the corporate current account and for this you need a work permit.

For a corporate savings acct, depending on the bank, no work permit is needed.

www.lawyer.th.com

[BangnaBound]

Regarding the ‘2 million Baht register capital or 1 million Baht if married to a Thai’ to get a work permit, I’ve heard conflicting stories. I’ve heard that the full amount must be paid up in order to get the work permit. And I’ve been told the opposite, that the capital only needs to be ‘registered’ (what ever that means) and in fact the full 2 million (or 1 million) never needs to fully invested in the company.

Which one is reality?

[rishi]

I think it depends on situation, and maybe location. Many, many posts from our sponsor - as well as many official/semiofficial online docs - says 25% suffice, but maybe this only applies to Bangkok?

I'm setting up a company in Chiang Mai and my lawyer (local Sunbelt) claims that the full amount 1,000,000 much be paid up to get a WP. I haven't questioned him on the issue, because my company needs that sort of money to get businesses going, anyway

[Sunbelt Asia]

I’ve heard that the full amount must be paid up in order to get the work permit. And I’ve been told the opposite, that the capital only needs to be ‘registered’ (what ever that means) and in fact the full 2 million (or 1 million) never needs to fully invested in the company.

In Bangkok it is register capital that they look at. Meaning the amount you register the company for on your company affidavit and what your shareholders are liable for if your company has liabilities. In Bangkok, this paid up capital in a Thai Limited Company does not have to be 100% cash to obtain a work permit.

Another regulation does exist that 25% of the register capital must be paid up. The regulation states the shares can be paid by cash, property or service. This regulation has nothing to do with the work permit but when you form the company.

No one at the Bangkok Labor Dept. looks at your bank account unless you are considered a foreign firm ( In Aug 2009 this rule will go for Amity companies as well) Many Thai majority own companies use inventory, equipment, or service to have the register capital.

If you are married to a Thai but you as a foreigner own 99% of the common shares of an exporting company. You are a foreign company and you need 2 million Baht register capital. If you have an Alien Business License then you must have register capital of at least 3 million Baht and show proof this cash invested. Notice this does not apply to companies with 51% of the shares owned by Thais.

With a Thai Limited partnership, it has to be cash and the Labor Dept will look at the corporation bank account.

think it depends on situation, and maybe location. Many, many posts from our sponsor - as well as many official/semiofficial online docs - says 25% suffice, but maybe this only applies to Bangkok?

As you stated, every government office seems to have their own way to interpret the laws. Makes life exciting in the Land of Smiles. In Bangkok, even on the 25% payment of cash, service or property on a Thai majority own company, no one checks to see if payment has been made until the audit.

www.lawyer.th.com

[rishi]

I might as well add: Not even "no Thai employees required for a WP" applies to Chiang Mai. My lawyer insests that my company needs minimum 1 Thai employe for a workpermit... And yes, I'm sure its for the WP and not for the entry stamp extensions, whis are based on a non-imm "O", that solely depends on marriage and money.

No problem here, because my wife works more than fulltime in the business, anyway. But others, who might not want any Thair employe, better not consider a Chiang Mai based company.

[Sunbelt Asia]

I might as well add: Not even "no Thai employees required for a WP" applies to Chiang Mai. My lawyer insests that my company needs minimum 1 Thai employe for a workpermit... And yes, I'm sure its for the WP and not for the entry stamp extensions, whis are based on a non-imm "O", that solely depends on marriage and money.

No problem here, because my wife works more than fulltime in the business, anyway. But others, who might not want any Thair employe, better not consider a Chiang Mai based company.

Ah Chiang Mai. Just depends on the officer, your type of business, your nationality and their mood in that province.

www.lawyer.th.com

[Taxelite.com]

In regard to the ratio of Thai employees to expatriates, for normal business except for 10 businesses requires 4 employees to an expatriate. Therefore, it depends on what business your company is carrying on.

[Sunbelt Asia]

In regard to the ratio of Thai employees to expatriates, for normal business except for 10 businesses requires 4 employees to an expatriate. Therefore, it depends on what business your company is carrying on.

However, no Thai employees required for the work permit in Bangkok no matter what business.

Today we made some headways with the folks up in Chiang Mai as well.

If the company is Thai majority owned, they will now not require to see any bank account.

Also, one Thai employee is ok now for the extension of stay permit based on business if the objective is "Consultant"

www.lawyer.th.com