Setting up new company and require work permit

[pritch84]

I currently have a work permit and my visa which is Non-immigrant B visa and I report to immigration every 3 months.

Next month my work permit is up for re-newal and my visa expires in July. I've decided now is a good time to form my own company and issue my own work permit.

Question 1: Will my single entry visa expire if I don't re-new my work permit at my existing place of work?

Question 2: So can I form the company under thai ownership and have a work permit issued for myself, then apply for a new visa (I believe only multiple entry with visa runs for 1st year) a few months later when current one expires?

[ubonjoe]

I appears you have an extension of stay you obtained at immigration based upon working not a visa. Your extension of stay is tied to the job you have now will be invalid on the date you stop working and you must leave the country or apply for a 7 day extension at immigration.

When your job ends you should go out for a tourist visa to start the process of setting up a company.

Then when you have the company setup you can apply for a work permit and then go out to apply for a single entry non-b visa in order for the work permit to issued. Then after you have the work permit you can then go out to obtain a multiple entry non-b visa.

[digitalchromakey]

Form your new company before you quit your old one.

Your original single entry non immigrant 'b' visa is already expired - you are on an Extension of Permission to Stay based on working in Thailand, so the day you leave employment your extension becomes invalid, the existing WP must be cancelled then you must exit Thailand within 24 hours.

However if you have your new company already formed with a fresh WP application already filed, then when when you leave Thailand you can go to say Penang and apply straight away for a 90 day Single Entry Non Immigrant 'B' Visa.

Return to Thailand, get your 90 day non 'b' stamp; you can then apply to Labour to collect your new WP and then start work.

[olddoc]

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Form your new company before you quit your old one.

Your original single entry non immigrant 'b' visa is already expired - you are on an Extension of Permission to Stay based on working in Thailand, so the day you leave employment your extension becomes invalid, the existing WP must be cancelled then you must exit Thailand within 24 hours.

However if you have your new company already formed with a fresh WP application already filed, then when when you leave Thailand you can go to say Penang and apply straight away for a 90 day Single Entry Non Immigrant 'B' Visa.

Return to Thailand, get your 90 day non 'b' stamp; you can then apply to Labour to collect your new WP and then start work.

My reading of the OP,s seems to suggest a "one man band" company ie "now is a good time to form my own company and issue my own work permit. "

Whilst no expert in these matters I wonder how what is being suggested would work ?

Surely there are more issues associated with obtaining a work permit than forming a company ?

[digitalchromakey]

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Form your new company before you quit your old one.

Your original single entry non immigrant 'b' visa is already expired - you are on an Extension of Permission to Stay based on working in Thailand, so the day you leave employment your extension becomes invalid, the existing WP must be cancelled then you must exit Thailand within 24 hours.

However if you have your new company already formed with a fresh WP application already filed, then when when you leave Thailand you can go to say Penang and apply straight away for a 90 day Single Entry Non Immigrant 'B' Visa.

Return to Thailand, get your 90 day non 'b' stamp; you can then apply to Labour to collect your new WP and then start work.

My reading of the OP,s seems to suggest a "one man band" company ie "now is a good time to form my own company and issue my own work permit. "

Whilst no expert in these matters I wonder how what is being suggested would work ?

Surely there are more issues associated with obtaining a work permit than forming a company ?

Thanks, my advice assumes the OP follows the correct sequence of events in forming a Thai Limited Company which includes office, Thai employees, 2 million capitalisation, social security and tax registration, etc, etc.

Edited February 22, 2014 by digitalchromakey

[pritch84]

Ok I was told this recently buy you guys but took a while to sink in sorry! I was sure I had a visa and thought you were making a mistake until I've read the writing very carefully in my passport and indeed it does say extension of stay until...

So I am going to attempt to do as much of this without a lawyer as possible with the help of my GF who is just graduating from university to translate. I think I should be able to at the very least setup my own company without a laywyer but possibly best to have one when it comes to filling in job descriptions on work permit application.

If there are any posts/case studies of anyone doing similar with advise that would be superb! If not then I shall make one myself unless you guys think the idea is ludicrous!?

My work permit expires on the 22nd of next month so hopefully have time.

Edited February 22, 2014 by pritch84

[olddoc]

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Ok I was told this recently buy you guys but took a while to sink in sorry! I was sure I had a visa and thought you were making a mistake until I've read the writing very carefully in my passport and indeed it does say extension of stay until...

So I am going to attempt to do as much of this without a lawyer as possible with the help of my GF who is just graduating from university to translate. I think I should be able to at the very least setup my own company without a laywyer but possibly best to have one when it comes to filling in job descriptions on work permit application.

If there are any posts/case studies of anyone doing similar with advise that would be superb! If not then I shall make one myself unless you guys think the idea is ludicrous!?

My work permit expires on the 22nd of next month so hopefully have time.

The best advise would come if you were able to articulate exactly what you are attempting to achieve.

I am no expert but i am aware that there are many potential pitfalls!

However, there are expert knowledgeable people here who will assist .

[pritch84]

I just didn't want to look like I'm asking for too much help is all Olddoc.

My goal is to create a company that will allow me to work primarily as a photographer/videographer for the wedding industry as well as corporate video/photography. So my work permit will have to allow me to work on locations. I also do online marketing and web design so figured If I setup a general media production company with Thai Shareholders and then I will apply for a work permit for the job where I actually need one as I will be working in the open, video and photography. The internet stuff I will actually have Thai staff and if I choose to work on that nobody can see anyway.

Obviously I want to do this as cheap as possible which is why I'm going to do as much as I can myself or at the very least gain a good understanding of the process so I can't be fleeced as many do get!

[olddoc]

I believe the plan may be fraught with difficulty.

However don't be discouraged by my lack of expertise.

If you wait someone will come along with good advise !

NB

Always better to ask than to dig a hole which proves difficult to climb out of !

Edited February 22, 2014 by olddoc

[pritch84]

Currently the biggest hurdle I can see is showing your assets/debtors of 2 million baht which I certainly don't have although possibly my girlfriends family can use their assets as evidence but I'd rather keep their involvement to a minimum!

Sooo how strict are they on this?

Considering I don't care if my girlfriend controls 100% stake or I have 49 % stake, is it better for me to be a shareholder considering I don't have 2 million baht to show or have 100% thai owned and then what would people recommend I do to display the capital? Is this something a lawyer/accountant tends to doctor?? As I know for a fact a lot of farang's who setup are just small business's without this amount of money.

[ubonjoe]

The 2 million baht registered capital is not in cash or assets. It is done when you register the company.

Have look at this A Business Guide to Thailand (English) (2014) from the BOI. I has a lot of useful info on company formation, taxes, work permits and etc,

[pritch84]

So in theory I don't need anything in the bank nor to show any debtors or assets after paying the fees to register the capital? Going to get reading that now, excellent thanks.

[pritch84]

"For a private limited company, the directors shall then cause the promoters and subscribers to pay

forthwith upon each share payable in money such amount, not less than 25%"

The worrying statement!

[CWMcMurray]

Couldn't he just add his new company to WP and then extend visa based on work at new company

Then once the new extension is finished and. Is good to go, then remove first company from WP

This way, never need to leave the country

Sent from my iPhone using Tapatalk

[ivowatson]

Not sure about the rest of the 'world' but in Phuket when you register a company with a foreigner as shareholder, the Thai shareholder(s) need to show bank statement with money according to their shares.

Example: Thai has 50% of the shares (of a 2 M. Baht capital co) so need 1 M thb. in his/her bank account. The foreigner doesn't have to show anything.

Registering a company with no foreign shareholder, then the Thais don't have to show any money in the bank. This company can hire you to work for them. So, let your girlfriend register a company with 90% of the shares in her name. Give 2 other Thais each 5%. Can be done in 1 or 2 days.

To get a work permit, this company needs 4 Thai employees (or at least needs to pay social security for 4 persons).

Marry your girlfriend and it's only 1 M. capital and 2 employees (first year only, second year 4).

No need for a lawyer. Staff at DBD and Labour will gladly help. Don't join your girlfriend going to register the company.

Good luck!

[digitalchromakey]

Not sure about the rest of the 'world' but in Phuket when you register a company with a foreigner as shareholder, the Thai shareholder(s) need to show bank statement with money according to their shares.

Example: Thai has 50% of the shares (of a 2 M. Baht capital co) so need 1 M thb. in his/her bank account. The foreigner doesn't have to show anything.

Was this in connection with a company set up to own property?

Phuket Land Dept checks provenance of Thai cash in this case.

As regards settiing up a Thai Limited Company (Phuket included), registration of Capital does not require money in the bank.

Edited February 22, 2014 by digitalchromakey

[digitalchromakey]

Couldn't he just add his new company to WP and then extend visa based on work at new company

Then once the new extension is finished and. Is good to go, then remove first company from WP

This way, never need to leave the country

Sent from my iPhone using Tapatalk

No is the simple answer.

You can add a second employer with the permision of the first, but in my area Labour consider the first WP entry as the 'Primary Employer' and will insist that the WP is cancelled should you want to remove that entry at a later date.

Second point is that an extension would not be possible for a new formed company as two years of accounts/tax records need to be submitted in support of an application for Extension of Permission to Stay based on employment in the Kingdom of Thailand.

Edited February 22, 2014 by digitalchromakey

[ivowatson]

Not sure about the rest of the 'world' but in Phuket when you register a company with a foreigner as shareholder, the Thai shareholder(s) need to show bank statement with money according to their shares.

Example: Thai has 50% of the shares (of a 2 M. Baht capital co) so need 1 M thb. in his/her bank account. The foreigner doesn't have to show anything.

Was this in connection with a company set up to own property?

Phuket Land Dept checks provenance of Thai cash in this case.

As regards settiing up a Thai Limited Company (Phuket included), registration of Capital does not require money in the bank.

Since Jan 2013 it does.

[pritch84]

Thanks, all a bit clearer and looks more promising do skip lawyers fees now

[HooHaa]

Ok I was told this recently buy you guys but took a while to sink in sorry! I was sure I had a visa and thought you were making a mistake until I've read the writing very carefully in my passport and indeed it does say extension of stay until...

So I am going to attempt to do as much of this without a lawyer as possible with the help of my GF who is just graduating from university to translate. I think I should be able to at the very least setup my own company without a laywyer but possibly best to have one when it comes to filling in job descriptions on work permit application.

If there are any posts/case studies of anyone doing similar with advise that would be superb! If not then I shall make one myself unless you guys think the idea is ludicrous!?

My work permit expires on the 22nd of next month so hopefully have time.

why dont you consult a lawyer to see what is possible before moving forward blindly on your own?

[pritch84]

So I spoke to a lawyer today and things I've been told which I'd like to run by you guys?

1) If a Thai non lawyer sets up the company without a lawyer, it will take about 2 months instead of 1 week

2) Photography is a forbidden job for foreigners and if we setup with her nobody will bother us as family member works for immigration police

3) She can warn us if immigration want to come and check on our "8 workers"

Does that ring true to you guys?

Cheers!

[thepool]

It all sounds very "dodgy" .

UP to you !

[ubonjoe]

Being a photographer is on of the professions reserved for Thai's

The rest sounds like a sales pitch.

[pritch84]

So about the 8 workers, can anyone give me anymore advise on that? Like what to expect?

[digitalchromakey]

So about the 8 workers, can anyone give me anymore advise on that? Like what to expect?

Why 8 Thai Workers if you are the only one who requires a WP?

Talk to Labour, in some areas they may initially accept fewer workers for a start up.

[digitalchromakey]

Being a photographer is on of the professions reserved for Thai's

The rest sounds like a sales pitch.

Don't think Photographer is on the list of professions restricted to Thais..

[pritch84]

ah sorry I forgot to mention I am now forming a 4 million baht company as it works out cheaper for me and an associate to both get work permits and visas through the same company. We also compliment each others work so decided to go into business together,

[TobiasML]

I would be careful. I have heard from a few friends of mine, who have their own company, that immigration is checking the work place and employee desks for start ups more carefully nowadays. Especially in Bangkok.

You will need to have 8 employees and 4 million registered capital for 2 work permits. Furthermore, if the lawyer you spoke too, would be really professional and there to help you, he would not advise you to just have the employees on paper. In regards to the capital you should be ready to pay at least 25% down. It is correct that it would not be necessary but in the eyes of immigration, labour department and tax department it would look more legit. I considered to setup my own company but the running costs, with office space, accountant, social security payment, etc. stopped me at the last minute.

Hope you have considered all of these requirements and costs. You can setup a company without any lawyer but, especially if you partner up, I would advise against it. You should have a good and legit shareholder agreement to avoid any issues down the line. A good lawyer would cost app. THB 80.000 to 100.000 included the setup fees and the payment for registered capital. I would not skip that to reduce costs in the short run as it will increase the risk to pay more in the long run.

Just my two cents worth.

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[pritch84]

But I've read they wont scrutinize company capital if farangs are not shareholders or directors. Every lawyer also states that having 8 employees is not really necessary but havent stated exactly when they will inspect although the last one told me she would call me if immigration were coming to check.

[TobiasML]

Are you trying to do it according to law or are you trying to find a loophole. It seems to me that you try to find a way around it. I and other posters have given you advice according to law. Everything else is not allowed to be discussedonn this forum and would be ill advice from our side.

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