Is a work permit needed for this?

[ShannonT]

I have a friend who is living outside of Thailand, but wants to do business in Thailand with a Thai partner. He will have 49% of the company shares while the Thai partner has 51%. They both invest money into the company from their own sources. I realize this is a question that may be best answered by a lawyer but I thought I'd give it a try anyways since they asked me today if I knew because I live in Thailand.

He would be the President and a board member of the company, with signatory access to the bank accounts. He is however only coming to Thailand for 4-5 days every 2 months or so to sign documents. Would he still need a work permit?

In my eyes, he would need one, but I'm not sure if that's the correct answer.

[wayned]

Yes, if he signs documents for the company he is working and a work permit is required by law.

[innerspace]

Needs a WP to sign papers in thailand.

But unless needed in person can sign from overseas without one.

[stickylies]

he can sign the papers in a plane or on a boat outside thai waters ;-)

[Gsxrnz]

Can't help wondering how much business acumen your friend has if he wasn't able to determine the answer to the question himself.

I hope he's done appropriate due diligence on the proposed business venture or he may have no need to come to Thailand to sign any documents as there'll be no need......if you get my drift.

[Arkady]

Technically a work permit is required. In practice you may be able to get away with not having one. The bank may ask to see a work permit, if you apply for a bank account as the signatory, but not necessarily, as long as you present an up-to-date copy of the company's affidavit showing you as an authorised signatory. The Revenue Dept and Commerce Ministry do not ask to see a WP, if the authorised signatory is a foreigner. I was the sole authorised signatory of a company for a couple of years before I got around to obtaining a WP and had no problems, except in trying to open an account with Bangkok Bank which was solved by going across the road to Thai Farmers Bank.

The reality is that the definition of work is extremely broad so that even being a director and attending board meetings in Thailand without being an authorised signatory technically requires a WP but the Labour Ministry and Immigration have better things to do than hunting down foreign representatives of foreign investors on the boards of Thai companies. Where it becomes an issue is when some one informs on you or, if you apply for PR or citizenship. I know two people who were rejected for PR on the grounds that they had no WPs to be non-exec directors without signing power of associate companies of their employers. They were told the Labour Ministry would prosecute them, if they didn't voluntarily withdraw their applications but were welcome to clean up their WP situations and apply again.

[minikev]

If he doesn't have a permit and anything goes wrong it will be an extremely easy way to make any documents null and void so he won't have owned anything.

[cbluck58]

coming to Thailand for 4-5 days every 2 months to sign papers - coming to Thailand for 4-5 days every 2 months to shag himself stupid more like - never heard of scanned documents ?

He could sign and scan everything without coming to Thailand and the work permit is irrelevant.

[baldman]

A left field suggestion......

If your man lives in an APEC Country he could apply for an APEC Travel Card. (ie doing business in an APEC Country)

Valid for 3 years it allows unlimited entry for business up to 90 days at a time.

My APEC Card cost me 150NZD every 3 years and its easy to turnup at the airport at anytime, then go and "do business".

Have no idea about its relevant to Citizenship or anything else.

But it works for me (have business interests in two hospitality industries)

[flyingdoc]

Surely a WP is not required if all documents can be signed in your home country?

It's only when documents HAVE to be signed in Thailand, that a WP is needed.

[SjaakNL2013]

I think "your friend" can better go to a good lawyer office and let them make all the papers, contracts, VISA's and so on.

By setting up a business, it's better to have all things legal closed before you start then try to fix it when you in business.

[DGIE]

Is he not the one offering to transfer million dollar to my account and then later come to my country to invest the money in profitable business?

[iang]

Sounds to me that a Thai business (non immB) visa or APEC Travel Card (if the op is eligible & qualifies) would be more than sufficient to over the all legally. The op is conducting business in Thailand as distinct from working the daily grind!!!

[ShannonT]

Can't help wondering how much business acumen your friend has if he wasn't able to determine the answer to the question himself.

I hope he's done appropriate due diligence on the proposed business venture or he may have no need to come to Thailand to sign any documents as there'll be no need......if you get my drift.

You're completely right and he will probably end up losing money. His entire approach to the business venture is flawed, in my opinion. But it's not my problem, I'm just trying t help him out a bit.

He will definitely be signing documents inside Thailand every once in a while. What I told him is that he may get away without a work permit, but if he gets caught for whatever reason his problems will be much bigger if he doesn't have one. I mean, it's easy for authorities to say he was working without a work permit. If he has one, then that wouldn't even be a discussion.

The company definitely has the financials and meets the requirements for one, I think he's just too lazy to apply for it and do all the paperwork.

[Mario2008]

Sounds to me that a Thai business (non immB) visa or APEC Travel Card (if the op is eligible & qualifies) would be more than sufficient to over the all legally. The op is conducting business in Thailand as distinct from working the daily grind!!!

For doing business on behalf of a foreign company with a Thai company no WP is needed. For working in a Thai business a WP is needed.

[Arkady]

If he doesn't have a permit and anything goes wrong it will be an extremely easy way to make any documents null and void so he won't have owned anything.

I don't think this would be the case. Having no WP does not affect ownership of shares in a company and anyone who is registered with the Commerce Ministry as an authorised signatory able to sign alone is lawfully able to bind the company. The Civil and Commercial Code doesn't specify that foreign signatories must have work permits. Therefore the company should still be bound by whatever he signed, even if he is arrested for signing it without a work permit. I once applied for WP for myself as the sole authorised signatory of the company and the Labour Ministry approved it without objecting that I couldn't sign for the company before getting the WP (or prosecuting me for working without a WP).

[ericthai]

If he doesn't have a permit and anything goes wrong it will be an extremely easy way to make any documents null and void so he won't have owned anything.

This is not true. The share holdings in the company can not be affected. The company could get a fine along with the person for not having a work permit but they are not going to lose their shareholdings.

Als A foreigner can own shares in a company and not work for the company, therefore not needing a work permit.

Any checks or papers that need to be signed or approved can be done as long as they are not signed in any buildings owned or leased

by the company or where the company is doing business. It can also be sent via post to be signed and returned.

As a shareholder you are able to come to Thailand and oversee your investment (do inspections) without needing a work permit.

I know this from my lawyer. I have owned a company here in Thailand for a little over 7 years. My father died some years ago and my mom is now 81 and living along and not doing so well. So I spoke to my lawyer about me going back to the USA for a few years and he said I did not need to renew my work permit if I move back to the USA. I can get documents sent via Fed-ex and visit Thailand a few times a year just to check up on factory.

He said this was legal and it's the same as someone that owns a condo and rents it out. They don't need a work permit to sign the lease agreement with the tenant or to collect the rent as they are overseeing their investment. This is how my lawyer explained it to me.

However he did say that this is Thailand and if someone has it out for you it is possible for them to push the issue that you did work while in Thailand. Shares in the company are not a risk. There would be possible fines for the company for hiring someone without a work permit weather they are getting paid or not and then of course the fines for working without a work permit. He said it would need to be someone that has some power to push things.

[iluvbeaches]

Spoke to a friend of mine in Phuket. If he is only a director and shareholder he does not need a work permit. Only if he engages in active business activity ie. soliciting clients then he would. Signing documents required by government offices is not work. Although it maybe easier and cheaper just to use DHL!