Work Permit For Small Business Owner

[ThamNamThalu]

Hi everyone!

First I would like to introduce myself. I'm a thai-expat-in-the-making, in my thirties. I have completely fallen in love with Thailand, so my goal is to make home in the country. Right now I'm learning thai.

I have started to do business in Africa to grow capital to move to Thailand, but the business I'm doing right now is not going that well, so I'm facing a dilemma whether I should continue in Africa (very tired of it) or should I withdraw from there and start business in Thailand (in case if it all burns down I can go back to work in Europe for a period of time, and then at least I have spent some time in Thailand where I feel home).

I've read thaivisa and other forums extensively, and done my research, so I have the basic understanding about how things work. I'm planning to move to Thailand together with my spouse (neither of us is thai) and to start a business. I know that to get a work permit for one foreigner, we need 4 million baht paid in registered capital and have 4 thai employees. That was the original plan, it would have been nice, but now we don't have 4m. That's where my question appears - is there ANY way around/loophole/scheme to get around the 4m baht? Is there anything else than holding sales contracts of the shares of all the major local 'shareholders' with blank buyer's name? Since it will not help me if I'm gonna work without WP and I really think I would need to do something in order to run business after all. How big chance does a small business (for example guesthouse, not in BKK) owner have to get caught without a WP (I guess thats pretty real), how big could be payoff to police and how real would be the deportation/blacklisting danger? Blacklisting I really want to avoid.

I know that many are here ready to advise me to NOT to do any small business in Thailand; I'm well aware and prepared for the risk of getting burnt (as I have said above). But if anyone has any thoughts and experiences about the WP issue they would be most highly appreciated.

[Satcommlee]

Its many peoples dream also...

There is an alternative to the traditional way.. look at the Thai Board of Investment. www.boi.go.th

If your business qualifies you could get away with as little as 1 Million Baht capital and 0 Thai employee's

[digitalchromakey]

The 4 million Registered Capital needed amongst other items for a Thai Work Permit is not what you think it is, there is no requirement to show actual cash in the bank when a Thai Company is formed.

Registered Capital is just that; on company formation you pay a fee of a few thousand baht per million of capital to register the Company Capitalisation, which comprises of the sum combination of Company Capital Equities and Debt Capital.

Bottom line is on day one you can have 0 Baht cash in a 4 million capitalised company (The amount of Capitalisation required per unmarried foreign employee Work Permit) whose only asset is a 4 miilion 'loan' (Debt Capital) to one of the directors (you) with no other liabilities or assets.

Many things can count as capital equities and debt including cash loans to directors, along with cash values for such assets as trade marks and intellectual property rights held.

As time goes by your accounts should show that you are adding (good) Equity Capital i.e tangible assets, along with a gradual repayment of the original directors 'loan' which helping reduce the (not so good) Debt Capital, whilst maintaining the 4 million net Company Capitalisation figure.

[whybother]

I thought it was 2 million baht capital per work permit.

But, as stated above, it doesn't necessarily have to be fully paid, but I would get an accountants verification on that as I did hear that was going to be a "crackdown" on that.

[digitalchromakey]

I thought it was 2 million baht capital per work permit.

But, as stated above, it doesn't necessarily have to be fully paid, but I would get an accountants verification on that as I did hear that was going to be a "crackdown" on that.

You are quite correct, it is 2 Million of Registered Capital per Work Permit (assuming the Foreigners are not married to a Thai).

The OP was enquiring about the required Capitalisation for 2x foreign WPs which it should be noted would ultimately require 8 x Thai employees, not 4.

.

[whybother]

I thought it was 2 million baht capital per work permit.

But, as stated above, it doesn't necessarily have to be fully paid, but I would get an accountants verification on that as I did hear that was going to be a "crackdown" on that.

You are quite correct, it is 2 Million of Registered Capital per Work Permit (assuming the Foreigners are not married to a Thai).

The OP was enquiring about the required Capitalisation for 2x foreign WPs which it should be noted would ultimately require 8 x Thai employees, not 4.

.

I know that to get a work permit for one foreigner, we need 4 million baht paid in registered capital and have 4 thai employees.

[digitalchromakey]

I thought it was 2 million baht capital per work permit.

But, as stated above, it doesn't necessarily have to be fully paid, but I would get an accountants verification on that as I did hear that was going to be a "crackdown" on that.

You are quite correct, it is 2 Million of Registered Capital per Work Permit (assuming the Foreigners are not married to a Thai).

The OP was enquiring about the required Capitalisation for 2x foreign WPs which it should be noted would ultimately require 8 x Thai employees, not 4.

.

I know that to get a work permit for one foreigner, we need 4 million baht paid in registered capital and have 4 thai employees.

Misread the posting - my bad.

[noob7]

I thought it was 2 million baht capital per work permit.

But, as stated above, it doesn't necessarily have to be fully paid, but I would get an accountants verification on that as I did hear that was going to be a "crackdown" on that.

You are quite correct, it is 2 Million of Registered Capital per Work Permit (assuming the Foreigners are not married to a Thai).

The OP was enquiring about the required Capitalisation for 2x foreign WPs which it should be noted would ultimately require 8 x Thai employees, not 4.

.

[whybother]

The OP was enquiring about the required Capitalisation for 2x foreign WPs which it should be noted would ultimately require 8 x Thai employees, not 4.

Actually, the OP was enquiring about 1 work permit, which requires 4 Thai employees.

[ThamNamThalu]

Thanks so much! You really are very well informed!

And this is good news. Im just curious, how probable and how soon that crackdown might happen (knowing of course that TIT :-))

[noob7]

The OP was enquiring about the required Capitalisation for 2x foreign WPs which it should be noted would ultimately require 8 x Thai employees, not 4.

Actually, the OP was enquiring about 1 work permit, which requires 4 Thai employees.

But b/c he also mentioned 4 million baht:

There are two options, for misunderstanding.

1wp, 2million, 4 employees

2wp, 4million, 8 employees

"That was the original plan, it would have been nice, but now we don't have 4m"

He has no 4 m, but maybe he has 2 ?