sleepyjohn Posted February 28, 2006 Share Posted February 28, 2006 I am considering forming a company. The company will own a piece of land and build one or more houses, one of which I may personally live in. Has anyone who has done this ever had a hassle about having a work permit or is it ignored? If I decide I need a WP i believe the 2million paid up capital entitles one to a WP. Is it easy to get one? What would be the range of taxes when the company went into "profit"? thanx in advance.... Link to comment Share on other sites More sharing options...
sinkorswim Posted February 28, 2006 Share Posted February 28, 2006 I am considering forming a company. The company will own a piece of land and build one or more houses, one of which I may personally live in. Has anyone who has done this ever had a hassle about having a work permit or is it ignored?If I decide I need a WP i believe the 2million paid up capital entitles one to a WP. Is it easy to get one? What would be the range of taxes when the company went into "profit"? thanx in advance.... you dont need a work permit as long as you are not doing any form of work. You can be a company director without a work permit.....I am. I too own land through a company but like anything else it is not guaranteed and can go wrong if they decide to look closely at your company. If you are building several houses and want to sell some later you will need to speak to a good tax accountant to limit the tax liability on the profits generated.....my best advice is to contact sunbelt asia who sponsor this forum. good luck whatever you do. Link to comment Share on other sites More sharing options...
Nadia 2 Posted February 28, 2006 Share Posted February 28, 2006 The law; In every year as required by law (section 1152 Civil and Commercial Code), one third (or the number nearest to one-third) of the directors must retire from office. A retiring director is eligible for re-election, unless restricted by law. There are (currently) no general restrictions on the nationality of directors of a Thai limited company, however, there are certain requirements for specific businesses to have a specific number of Thai or resident directors. To tackle the misuse of limited companies by foreigners the government could simply impose regulations requiring for all or more businesses to have a (or rotating) specific number of Thai directors. Every year the foreigner must retire from office and must be re-elected and must be eligible for re-election. One simple but serious risk for landholding companies is the requirement that the foreign director (even the director of a barely active landholding company) must be in the possession of a work permit (Alien Working Act) if he is acting (in any locality and at any particular time and whether subject to absolute or conditional prohibition) on behalf of the company, or it is a criminal offense and any signed document could be rejected by the government agency involved and the director could face criminal charges and even deportation out of Thailand. Work is defined very broadly 'engaging in work by exerting energy or using knowledge whether or not in consideration of wages or other benefit' Section 4 & 5 of the Alien Working Act. The foreign director acting on behalf of the Thai company, like opening a company bank account, applying for telephone lines, registering a land transfer or filing the balance sheet, must, by law, be in the possession of a work permit. Working without a valid work permit even for a day is a criminal offense. The Officials of the Land Department, the Ministry of Commerce or the Revenue Department may request the foreign director's work permit before they accept any document signed by the director. For most foreigners who just have a company to hold his or her holiday home (and who mostly do not live in Thailand) it is impossible to obtain a work permit. The ministry of Labor and Social Welfare's Department of Employment requires an extensive list of documents and conditions before they grant a work permit to the foreigner. Link to comment Share on other sites More sharing options...
Bobcat Posted February 28, 2006 Share Posted February 28, 2006 The foreign director acting on behalf of the Thai company, like opening a company bank account, applying for telephone lines, registering a land transfer or filing the balance sheet, must, by law, be in the possession of a work permit. Working without a valid work permit even for a day is a criminal offense. The Officials of the Land Department, the Ministry of Commerce or the Revenue Department may request the foreign director's work permit before they accept any document signed by the director. Nadia 2 is quite correct. If you are a director of a Thai company and you sign anything in Thailand in your capacity as director then you need a Thai work permit. Link to comment Share on other sites More sharing options...
sleepyjohn Posted February 28, 2006 Author Share Posted February 28, 2006 Excellent replies thankyou Nadia for your academic legal advice although I would still be interested in some more real-life experiences such as SinkorSwim's, so please keep them coming. Perhaps Nadia you might expand on what would become of the farang's assets in a scenario where he was "closed down" from running a company. Link to comment Share on other sites More sharing options...
Khun Jean Posted March 1, 2006 Share Posted March 1, 2006 (edited) Excellent replies thankyou Nadia for your academic legal advice although I would still be interested in some more real-life experiences such as SinkorSwim's, so please keep them coming.Perhaps Nadia you might expand on what would become of the farang's assets in a scenario where he was "closed down" from running a company. Deportation, jail time or fines to be paid come to mind. If it is not a real company, like one who makes profit and pays taxes, why bother. It is just a small loophole found by laywers. But these lawyers are not accountable so you take the full risks. Who knows how long it takes to close these loopholes? Next election? Leasing is still the most safe, a pity it is only sure for 30 years. Edited March 1, 2006 by Khun Jean Link to comment Share on other sites More sharing options...
johnnyk Posted March 1, 2006 Share Posted March 1, 2006 IMO, the company ownership set up allows Thais to have their cake and eat it too (the Thai way in many things). 1) They can proclaim to their own people that furriners can't own Thailand 2) They allow a form of ownership sufficient that falangs will invest large sums in property 3) Everybody saves face 4) The Thais get the money 5) In the end they maintain enough control to throw you out easily The key point is #4. Link to comment Share on other sites More sharing options...
sleepyjohn Posted March 2, 2006 Author Share Posted March 2, 2006 IMO, the company ownership set up allows Thais to have their cake and eat it too (the Thai way in many things).1) They can proclaim to their own people that furriners can't own Thailand 2) They allow a form of ownership sufficient that falangs will invest large sums in property 3) Everybody saves face 4) The Thais get the money 5) In the end they maintain enough control to throw you out easily The key point is #4. You are right about the key point Johnny. If foreigners started selling en masse whole areas of Thailand would be dead in the water. Even more dead than natural disaster and political strife have made them. No government can ever let this happen....so why actively change the status quo? Link to comment Share on other sites More sharing options...
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