Want To Start Company With Thai Wife.

[klubex99]

Hi.

Myself and Thai wife are launching a new food product. We already have big interest from Makro and Tesco Lotus on the product. So very promising times ahead. However, we have not yet set up the legal trading entity.

We know that forming a LTD company is the route to go down, and 51% would be Thai owned which I am happy with.

My wife would not be a ghost partner, she is very much hands on in the process of this venture (more than me). But my wife has no money to speak of in her bank account. All our money is sat in my own accounts both in Thailand and in the UK.

How much money would have to be put into my wife's account to show during incoperation? Also, is this money subject to a minimum time frame for it to have been sat in her account? example... 6 months. Or can I just throw some money into her account and that would satisfy??

Also... do we need to show 20 Million baht (on paper), even though I don't have that much.. I was told it can be got around using a standard accountant who will issue it on paper.

What is the minimum (real money) we need to have to form this company???

Thanks for any help.

[Sunbelt Asia]

Hi

Ghost shareholders are generally not a good idea, in Bangkok at least they are checking bank accounts.

Since your wife is Thai then the registered capital can be 1 million baht. If your wife is the other shareholder (please be aware you need 3) if she is holding 51% of the 1 million baht company then during the establishment process she would need to provide a bank statement and letter of confirmation from the bank showing that she has 510,000 in her bank account, as would any Thai shareholder.

As the foreigner you would need to provide a bank statement showing you have the cash to cover your shares.

Once the company has been established (let’s say that it was recorded that 1 Million Baht is fully paid up by all shareholders). The company’s auditor would check on the status of the money paid and would want to know how the capital was spent; ie on assets or working capital The unused amount should be shown on the company’s bank account.

For example, if you spent 400,000 Baht on assets and covering expenses over the course of the year then your auditor will ask where is the remaining 600,000 Baht, if the amount is in the account at that time, then it is fine, but if not, you would to explain to the auditor where the funds are, such as a loan to the director.

Please be aware that Thailand does have an FDA and does require FDA approval on food products, this will be an extra cost to consider when setting up a company. Also, another thing to be aware of is if you set your wife as a Director then she cannot count as one of the 4 Thai employees.

[sunbeltlegal][/sunbeltlegal]