There are plenty of posts concerning registering a Thai Ltd company and the requirements for obtaining a work permit for a foreign director.

What are the requirements where the foreign, controlling director is not actively working in Thailand?

Here's my situation:

Over the past 8 years of living and working in Thailand, I have built and managed several profitable, small 'hotels'. All of these businesses have been operated either via Thai Ltd company or Ltd partnership, with the Thai majority ownership being with my Thai wife, (either wife #1 or #2...).

Now I'm happily divorced yet again, and with no plans to remarry (ever!), I want to build another small hotel on leased land, where I can also construct my own little house. This time round, I do not want my ex's to have any legal say in the business, (even though we get on just fine - I still have a 50% share in their hotel businesses).

I can lease the land for up to 30 years in my own name, (I have done that before). But what about the business that's built and operated on that land?

According to the rules in Phuket, I'm not actually building a 'hotel', but a guesthouse, so the tax and accounting requirements are less arduous.

The guesthouse business needs to be operated via a suitable 'vehicle', such as a registered ltd company. I need to have control over this business, but I will not work in it. I will simply reside at my guesthouse business and let Thai employees do the required work.

I know that a WP is needed by a foreign director to legalise signing of company documents if within Thailand, but that requirement is easily resolved by signing papers overseas.

In a nutshell, are there any advantages and benefits (and disadvantages) of owning and controlling a Thai business when you do not actually work in the business?

And if so ... what are these?

Simon

Who will be hire / fire the staff?

Since you are probably going to have at least 4 Thai employees, why not do it properly and get a work permit paying yourself the minimum salary or close to it. That will make it easier to get a bank account with you as sole signatory and other stuff. You can probably do most director stuff without a WP, as you say, but you might run into obstacles. Some disgruntled Thai might also put Immigration on to you, if you have no WP, and you are exposed if you are living on the property.

Who will own the Thai shares in the company, if you don't want your exes involved?

An off-topic post has been deleted.

As 49% shareholder living on the premises you will find it impossible to prove when questioned by a tax inspector – and you will be questioned – that you are merely controlling the business but not working. At any rate, controlling the business, ie its operation, can only be considered working.

My advice to you Simon43 -- since you have all these profitable businesses around Thailand and maybe still a text-messaging money generator elsewhere -- is to take advantage of Police Order 777-2551 2.5 B. and buy yourself a 10 million baht condominium with borrowed money if necessary to get to that figure and put your mind at rest instead of coming up with one scheme after another to be able to extend your stay in your beloved LOS.

As 49% shareholder living on the premises you will find it impossible to prove when questioned by a tax inspector – and you will be questioned – that you are mere ly controlling the business but not working. At any rate, controlling the business, ie its operation, can only be considered working.

I'm not sure you know what you're talking about. Tax inspectors don't care who is or is not working in a business, only that all taxes are paid. It's perfectly reasonable that business owners pay themselves very minimal, even zero income (from a tax liability point of view) as the profits stay inside their company. Often the corporate tax rate is less than the individual income tax rates when above a certain amount, thus the reason they do that.

A question I have is why Admin are giving advice on this forum?

Edited July 4, 201313 yr by Time Traveller