New Company Start up costs accurate?

[onthemoon]

....we were looking for answers to these questions....in an open forum....(which should be available)....without lawyers or lawyer fees, at this stage....

Yes, and you get a lot of wrong answers. The cheapest option (in this case, doing it without lawyers) is always the most expensive in the end.

Good luck.

[yankee99]

....we were looking for answers to these questions....in an open forum....(which should be available)....without lawyers or lawyer fees, at this stage....

Yes, and you get a lot of wrong answers. The cheapest option (in this case, doing it without lawyers) is always the most expensive in the end.

Good luck.

Interesting as i use a accountant for accounting not a lawyer. Your view is a lawyer is more qualified and thus one should pay more?

[onthemoon]

....we were looking for answers to these questions....in an open forum....(which should be available)....without lawyers or lawyer fees, at this stage....

Yes, and you get a lot of wrong answers. The cheapest option (in this case, doing it without lawyers) is always the most expensive in the end.

Good luck.

Interesting as i use a accountant for accounting not a lawyer. Your view is a lawyer is more qualified and thus one should pay more?

Use the right people for the right job. The OP wants to open a new company, so I suggested a lawyer.

If you are talking about accounting cost (which I have not commented on), please send me PM and I can recommend an accountant.

[ukcorporate]

Good Day,

The general costs as a guide.

Overall Break down of costs is

For Accounting Services:

Monthly Accounting Service 2000 Baht plus (Thai only service)

5000 Baht plus (English)

Monthly Vat Filing 1000 Baht

Social Fund Filing 1000 Baht

Withholding Tax Filing 1000 Baht

Yearly audit 6000 Baht Plus

Half Yearly Audit 3000 Baht Plus

Monthly accounting Packages are available :

Thai accounting service including all tax filings 3500 Baht

English Accounting Service including all tax filings 6500 Baht

These do not include the half/yearly audits

Visa/ Work permit fees:

NON IMM B Visa 4900 Baht (inc government fees)

Work permit Application 8100 Baht (inc government fees)

Registration of VAT 2000 Baht

Registration of Thai Social Fund 2000 Baht

Registration Of 2 million baht company 17,500 Baht ( inc government fees)

Full company set up and visa and work permit, 25,0000 Baht (inc of all government fees)

2000 Baht per month for service accounting would be about accurate for a Thai language only service. If you want your accounts in English then expect to pay around 5000 Baht.

Also keep in mind that the 2000 Baht fee will cover a certain amount of transactions if there are more than the set number then the costs will rise.

On top of your standard accounting fee don't forget to add on for half year audit , and one year audit these are required to be done by a government recognized auditor and fees will vary from around 6000 Baht and up according to number of transactions.

Also if you have a work permit then you will need Vat filing every month and social fund filing every month we charge around 1000 Baht for filing each service, and then with holding tax filing at another 1000 Baht. Of course these could be done yourself if you have time available.

Salary Tax/Withholding Tax this will vary according to the salary that is paid, the minimum salary you can be paid will depend on your nationality.

Visa: The general fee for a one year NON Imm B Visa would be around 3000 Baht plus government fee of 1900 Baht. It will be valid for 90 days in the first instance, you will then extend at local immigration office for the 1 year. This visa must be obtained out side of Thailand, but if you have a current non imm O visa it is possible to change it to a non imm B in Bangkok.

For visa extension you will need Work permit , Proof of withholding tax payment for 3 months

Fee for work permit is 5000 Baht plus government fee of 3100 Baht . The work permit will be valid for 1 year,

For a work permit in the first instance you will need to provide proof of 2 million baht registered capital , VAT Registration and 3 months Social fund payment for 4 Thai employees.

The minimum that can be paid to Thai employees is 9000 Baht per month under Thai law, The Social Fund payment would be 2880 Baht for 4 thai employees on this salary, 1440 from the employer and 1440 from the employee.

Of course there are options with regards to paying the Thai employees salary please contact us for more info..

Steve (Foreign Business Consultant)

^^^^ I would use this and look to pay 50% because this would be the top of the price range!

Of course being a thai business . Most of our clients are Thais not expatriates,

Also if you look at any other company that does have any service in English you will find that their prices at almost double ours in many areas.

Edited due to reading post incorrectly!

Your prices that you have stated seem to be pretty much the same as we stated in our original post.

Regards

Edited March 4, 2014 by Rooo
contact

[ukcorporate]

Good Day,

The general costs as a guide.

Overall Break down of costs is

For Accounting Services:

Monthly Accounting Service 2000 Baht plus (Thai only service)

5000 Baht plus (English)

Monthly Vat Filing 1000 Baht

Social Fund Filing 1000 Baht

Withholding Tax Filing 1000 Baht

Yearly audit 6000 Baht Plus

Half Yearly Audit 3000 Baht Plus

Monthly accounting Packages are available :

Thai accounting service including all tax filings 3500 Baht

English Accounting Service including all tax filings 6500 Baht

These do not include the half/yearly audits

Visa/ Work permit fees:

NON IMM B Visa 4900 Baht (inc government fees)

Work permit Application 8100 Baht (inc government fees)

Registration of VAT 2000 Baht

Registration of Thai Social Fund 2000 Baht

Registration Of 2 million baht company 17,500 Baht ( inc government fees)

Full company set up and visa and work permit, 25,0000 Baht (inc of all government fees)

2000 Baht per month for service accounting would be about accurate for a Thai language only service. If you want your accounts in English then expect to pay around 5000 Baht.

Also keep in mind that the 2000 Baht fee will cover a certain amount of transactions if there are more than the set number then the costs will rise.

On top of your standard accounting fee don't forget to add on for half year audit , and one year audit these are required to be done by a government recognized auditor and fees will vary from around 6000 Baht and up according to number of transactions.

Also if you have a work permit then you will need Vat filing every month and social fund filing every month we charge around 1000 Baht for filing each service, and then with holding tax filing at another 1000 Baht. Of course these could be done yourself if you have time available.

Salary Tax/Withholding Tax this will vary according to the salary that is paid, the minimum salary you can be paid will depend on your nationality.

Visa: The general fee for a one year NON Imm B Visa would be around 3000 Baht plus government fee of 1900 Baht. It will be valid for 90 days in the first instance, you will then extend at local immigration office for the 1 year. This visa must be obtained out side of Thailand, but if you have a current non imm O visa it is possible to change it to a non imm B in Bangkok.

For visa extension you will need Work permit , Proof of withholding tax payment for 3 months

Fee for work permit is 5000 Baht plus government fee of 3100 Baht . The work permit will be valid for 1 year,

For a work permit in the first instance you will need to provide proof of 2 million baht registered capital , VAT Registration and 3 months Social fund payment for 4 Thai employees.

The minimum that can be paid to Thai employees is 9000 Baht per month under Thai law, The Social Fund payment would be 2880 Baht for 4 thai employees on this salary, 1440 from the employer and 1440 from the employee.

Of course there are options with regards to paying the Thai employees salary please contact us for more info..

Steve (Foreign Business Consultant)

^^^^ I would use this and look to pay 50% because this would be the top of the price range!

Of course being a thai business . Most of our clients are Thais not expatriates,

Also if you look at any other company that does have any service in English you will find that their prices at almost double ours in many areas.

I would suggest that you check your end of year reports in great detail as at that price there is no way that your auditor is doing an in depth review of your accounts at year end. If there is any transaction that has been filed incorrectly such as a vat credit. When the revenue department audit your accounts (and they will) you will be liable for 200 % on top of what was claimed as a credit incorrectly.

Just be careful! There are many people out there who do a bad job and wont care as it's not there problem when the authorities come looking for their money.

Regards

Also as i just noticed you said your company setup was 20,000 baht, yet ours is only 17,500 so why a 50% decuction in cost?

I only ask as we always aim to improve our services as well as pricing.

Edited March 4, 2014 by Rooo

[ukcorporate]

Good Day,

The general costs as a guide.

Overall Break down of costs is

For Accounting Services:

Monthly Accounting Service 2000 Baht plus (Thai only service)

5000 Baht plus (English)

Monthly Vat Filing 1000 Baht

Social Fund Filing 1000 Baht

Withholding Tax Filing 1000 Baht

Yearly audit 6000 Baht Plus

Half Yearly Audit 3000 Baht Plus

Monthly accounting Packages are available :

Thai accounting service including all tax filings 3500 Baht

English Accounting Service including all tax filings 6500 Baht

These do not include the half/yearly audits

Visa/ Work permit fees:

NON IMM B Visa 4900 Baht (inc government fees)

Work permit Application 8100 Baht (inc government fees)

Registration of VAT 2000 Baht

Registration of Thai Social Fund 2000 Baht

Registration Of 2 million baht company 17,500 Baht ( inc government fees)

Full company set up and visa and work permit, 25,0000 Baht (inc of all government fees)

2000 Baht per month for service accounting would be about accurate for a Thai language only service. If you want your accounts in English then expect to pay around 5000 Baht.

Also keep in mind that the 2000 Baht fee will cover a certain amount of transactions if there are more than the set number then the costs will rise.

On top of your standard accounting fee don't forget to add on for half year audit , and one year audit these are required to be done by a government recognized auditor and fees will vary from around 6000 Baht and up according to number of transactions.

Also if you have a work permit then you will need Vat filing every month and social fund filing every month we charge around 1000 Baht for filing each service, and then with holding tax filing at another 1000 Baht. Of course these could be done yourself if you have time available.

Salary Tax/Withholding Tax this will vary according to the salary that is paid, the minimum salary you can be paid will depend on your nationality.

Visa: The general fee for a one year NON Imm B Visa would be around 3000 Baht plus government fee of 1900 Baht. It will be valid for 90 days in the first instance, you will then extend at local immigration office for the 1 year. This visa must be obtained out side of Thailand, but if you have a current non imm O visa it is possible to change it to a non imm B in Bangkok.

For visa extension you will need Work permit , Proof of withholding tax payment for 3 months

Fee for work permit is 5000 Baht plus government fee of 3100 Baht . The work permit will be valid for 1 year,

For a work permit in the first instance you will need to provide proof of 2 million baht registered capital , VAT Registration and 3 months Social fund payment for 4 Thai employees.

The minimum that can be paid to Thai employees is 9000 Baht per month under Thai law, The Social Fund payment would be 2880 Baht for 4 thai employees on this salary, 1440 from the employer and 1440 from the employee.

Of course there are options with regards to paying the Thai employees salary please contact us for more info..

Steve (Foreign Business Consultant)

^^^^ I would use this and look to pay 50% because this would be the top of the price range!

Of course being a thai business . Most of our clients are Thais not expatriates,

Also if you look at any other company that does have any service in English you will find that their prices at almost double ours in many areas.

I would suggest that you check your end of year reports in great detail as at that price there is no way that your auditor is doing an in depth review of your accounts at year end. If there is any transaction that has been filed incorrectly such as a vat credit. When the revenue department audit your accounts (and they will) you will be liable for 200 % on top of what was claimed as a credit incorrectly.

Just be careful! There are many people out there who do a bad job and wont care as it's not there problem when the authorities come looking for their money.

Regards

Also as i just noticed you said your company setup was 20,000 baht, yet ours is only 17,500 so why a 50% decuction in cost?

I only ask as we always aim to improve our services as well as pricing.

i will make a quick comparison please feel free to comment if we have made any mistake.

our price your price

Company set up 17,500 Baht 20,000 Baht

Monthly Accounting inc 3,500 Baht Thai 5,000 Baht

all filings 5,500 Baht Eng

So it would seem our costs our cheaper

Sorry not meaning to poke>> just trying to make a good comparison for the O.P please feel free to correct me if i'm understanding you wrong

Edited March 4, 2014 by Rooo

[yankee99]

Good Day,

The general costs as a guide.

Overall Break down of costs is

For Accounting Services:

Monthly Accounting Service 2000 Baht plus (Thai only service)

5000 Baht plus (English)

Monthly Vat Filing 1000 Baht

Social Fund Filing 1000 Baht

Withholding Tax Filing 1000 Baht

Yearly audit 6000 Baht Plus

Half Yearly Audit 3000 Baht Plus

Monthly accounting Packages are available :

Thai accounting service including all tax filings 3500 Baht

English Accounting Service including all tax filings 6500 Baht

These do not include the half/yearly audits

Visa/ Work permit fees:

NON IMM B Visa 4900 Baht (inc government fees)

Work permit Application 8100 Baht (inc government fees)

Registration of VAT 2000 Baht

Registration of Thai Social Fund 2000 Baht

Registration Of 2 million baht company 17,500 Baht ( inc government fees)

Full company set up and visa and work permit, 25,0000 Baht (inc of all government fees)

2000 Baht per month for service accounting would be about accurate for a Thai language only service. If you want your accounts in English then expect to pay around 5000 Baht.

Also keep in mind that the 2000 Baht fee will cover a certain amount of transactions if there are more than the set number then the costs will rise.

On top of your standard accounting fee don't forget to add on for half year audit , and one year audit these are required to be done by a government recognized auditor and fees will vary from around 6000 Baht and up according to number of transactions.

Also if you have a work permit then you will need Vat filing every month and social fund filing every month we charge around 1000 Baht for filing each service, and then with holding tax filing at another 1000 Baht. Of course these could be done yourself if you have time available.

Salary Tax/Withholding Tax this will vary according to the salary that is paid, the minimum salary you can be paid will depend on your nationality.

Visa: The general fee for a one year NON Imm B Visa would be around 3000 Baht plus government fee of 1900 Baht. It will be valid for 90 days in the first instance, you will then extend at local immigration office for the 1 year. This visa must be obtained out side of Thailand, but if you have a current non imm O visa it is possible to change it to a non imm B in Bangkok.

For visa extension you will need Work permit , Proof of withholding tax payment for 3 months

Fee for work permit is 5000 Baht plus government fee of 3100 Baht . The work permit will be valid for 1 year,

For a work permit in the first instance you will need to provide proof of 2 million baht registered capital , VAT Registration and 3 months Social fund payment for 4 Thai employees.

The minimum that can be paid to Thai employees is 9000 Baht per month under Thai law, The Social Fund payment would be 2880 Baht for 4 thai employees on this salary, 1440 from the employer and 1440 from the employee.

Of course there are options with regards to paying the Thai employees salary please contact us for more info..

Steve (Foreign Business Consultant)

U.K Corporate Consultants Co.,Ltd

Soi Mangkornkandi, Samutprakan

081-696-3631

^^^^ I would use this and look to pay 50% because this would be the top of the price range!

Of course being a thai business . Most of our clients are Thais not expatriates,

Also if you look at any other company that does have any service in English you will find that their prices at almost double ours in many areas.

I would suggest that you check your end of year reports in great detail as at that price there is no way that your auditor is doing an in depth review of your accounts at year end. If there is any transaction that has been filed incorrectly such as a vat credit. When the revenue department audit your accounts (and they will) you will be liable for 200 % on top of what was claimed as a credit incorrectly.

Just be careful! There are many people out there who do a bad job and wont care as it's not there problem when the authorities come looking for their money.

Regards

Also as i just noticed you said your company setup was 20,000 baht, yet ours is only 17,500 so why a 50% decuction in cost?

I only ask as we always aim to improve our services as well as pricing.

i will make a quick comparison please feel free to comment if we have made any mistake.

our price your price

Company set up 17,500 Baht 20,000 Baht

Monthly Accounting inc 3,500 Baht Thai 5,000 Baht

all filings 5,500 Baht Eng

So it would seem our costs our cheaper

Sorry not meaning to poke>> just trying to make a good comparison for the O.P please feel free to correct me if i'm understanding you wrong

Just to be clear these are already included in my monthly fees

Monthly Vat Filing 1000 Baht

Social Fund Filing 1000 Baht

Withholding Tax Filing 1000 Baht

Yearly audit 6000 Baht Plus

Half Yearly Audit 3000 Baht

Also my original company setup included at no extra cost.

Registration of VAT 2000 Baht

Registration of Thai Social Fund 2000 Baht

Looking at vat registration online one surely doesnt need a professional to set that up.

[ukcorporate]

After reading khunper's last post i took the liberty of checking with our accounting team and they have confirmed the rate for 2014 is back at 5%.

My apologies khunper.

[Braddockrd]

This is all great info Guys thanks all very much for your input, I'll take the advice given and shortly take up the P.M. offers.

Just one final question because the the work I'll be undertaking can and will be undertaken "remotely" via a laptop on a 50% split in Thailand and in my home country probably six months in each on a 2 month rotate.

I know I need to have the necessary company professionally set up and in place to be able to commence my business, could someone shed some light on the approach they would advise.

Cheers again.

If you are just doing the work yourself, why do you need to set up a company? Is it because you need to issue receipts? In that case, why not just set up a HK company? Very easy and cheap to administer. Payments should be easy to manage. The only thing is the work permit, but it looks like a very expensive work permit, including the corporate income tax....

[onthemoon]

This is all great info Guys thanks all very much for your input, I'll take the advice given and shortly take up the P.M. offers.

Just one final question because the the work I'll be undertaking can and will be undertaken "remotely" via a laptop on a 50% split in Thailand and in my home country probably six months in each on a 2 month rotate.

I know I need to have the necessary company professionally set up and in place to be able to commence my business, could someone shed some light on the approach they would advise.

Cheers again.

If you are just doing the work yourself, why do you need to set up a company? Is it because you need to issue receipts? In that case, why not just set up a HK company? Very easy and cheap to administer. Payments should be easy to manage. The only thing is the work permit, but it looks like a very expensive work permit, including the corporate income tax....

Yes, but then: Some people want to be legal.

[khunPer]

This is all great info Guys thanks all very much for your input, I'll take the advice given and shortly take up the P.M. offers.

Just one final question because the the work I'll be undertaking can and will be undertaken "remotely" via a laptop on a 50% split in Thailand and in my home country probably six months in each on a 2 month rotate.

I know I need to have the necessary company professionally set up and in place to be able to commence my business, could someone shed some light on the approach they would advise.

Cheers again.

If you are just doing the work yourself, why do you need to set up a company? Is it because you need to issue receipts? In that case, why not just set up a HK company? Very easy and cheap to administer. Payments should be easy to manage. The only thing is the work permit, but it looks like a very expensive work permit, including the corporate income tax....

From several posts in TV-forum it seems like a number of people works here with “laptop business” under the radar.

The main problem may be domestic invoicing and domestic payments/transfers, and if OP attends a business meeting, without a work permit, i.e. company set-up.

To my knowledge OP will need 4 Thai employees and a minimum shareholder capital of 2 million bath for 1 work permit; furthermore at least 1 annual balance sheet. There may be ways around it, but OP should consult a lawyer used to set-up companies.

Another prospect is that OP (or any foreigner) can only hold 49 percent of the shareholder capital, whilst 51 percent need to be owned by Thai nationals. Preferred shares are a possibility for vote majority, but may not be fully legal. Using proxy shareholders may be difficult today, as the authorities check if the necessary fund is available by the Thai shareholders; an experienced lawyer will know how to deal with it. A plain company set-up by a law firm may cost between 30k to 50k bath only.

Another possibility for OP may be to co-operate with an excising Thai company, doing the invoicing etc. on a commission base or plain fees, and perhaps also be able to include a work permit – kind of sub-contractor set-up, to be compared with the operating costs of a company and finding trusted Thai partners/shareholders.

PS: Please disregard my comments about Social Security in my earlier post about budget, as you may not need SS as a foreigner (re. Ukcoporate’s advise) and there seems to be a maximum of 600 baht a month, i.e. 1,200 baht total a month.

[Rooo]

Please refrain from continuous over quoting full posts.You will get errors & it's very confusing to the readers.Had to delete one post as it couldn't be edited.

[shrimpythailand]

cool info ...but yes 4 thai's for one falung work permit... we paid 10,000 bt here in bangkok for me - 15,000 on your first post is too high...

[Noi657]

I'm looking at setting up a company in the near future, my wife being majority shareholder with myself and another farang as the remaining shareholders. M question is this...... I will only require one work permit, can the other farang still get his long term business visas every year just by being a "silent partner" so to speak? Many thanks

[Thai at Heart]

I would think the salary tax depends on the salaries paid.

I'm not sure about the insurance fees: What kind of business are you talking about?

Does the fee of THB 15,000 for a one-year visa include the fee for the work permit?

Thanks for the replies, the business is a 1 man I.T. business working from home our clients are mainly Thai businesses, I will however occasionally need to pay for the services of people to assist me and I believe although not 100% that the 15,000bht includes a work-permit.

I'm obviously looking to keep my initial start up costs to an absolute minimum whilst however obviously keeping everything legitimate.

Any advice is much appreciated.

You will need to ask whoever offered the visa service for THB 15,000 whether it includes the WP. In fact, the visa fees are very low, it is the WP that is more expensive.

Unless you have 4 Thai staff and at least THB 2,000,000 investment, you cannot legally work in this company though.

Interesting topic. Can you hire nominees and pay them 1 baht a month on order to meet the local staff requirements? If you are required by law to pay minimum salary, do you need to show proof?

Can a foreigner obtain a business license and own a business directly?

No and no.

[onthemoon]

I'm looking at setting up a company in the near future, my wife being majority shareholder with myself and another farang as the remaining shareholders. M question is this...... I will only require one work permit, can the other farang still get his long term business visas every year just by being a "silent partner" so to speak? Many thanks

You need THB 2 million capital and 4 Thai employees per work permit for a foreigner. The work permit will allow you to get a long-term extension ( for 1 or 2 years) on your non-immigrant Class B (business) visa.

If there is no work permit, I don't see how the other farang can stay based on business.

Maybe this should be moved to the visa/work-permit section of this forum?

[Noi657]

Hmm... Wonder how so many bar owners get away with owning a bar with no work permit!

[onthemoon]

Vocabulary: "farang" is the term used colloquially in Thailand for white-skinned foreigners. The law does not recognize this term; it refers to "aliens".

The word "falung" does not exist.

[onthemoon]

Hmm... Wonder how so many bar owners get away with owning a bar with no work permit!

Sure you do, but this topic is about how to conduct business in Thailand legally.

[spacedcowboy]

This is all great info Guys thanks all very much for your input, I'll take the advice given and shortly take up the P.M. offers.

Just one final question because the the work I'll be undertaking can and will be undertaken "remotely" via a laptop on a 50% split in Thailand and in my home country probably six months in each on a 2 month rotate.

I know I need to have the necessary company professionally set up and in place to be able to commence my business, could someone shed some light on the approach they would advise.

Cheers again.

If you are just doing the work yourself, why do you need to set up a company? Is it because you need to issue receipts? In that case, why not just set up a HK company? Very easy and cheap to administer. Payments should be easy to manage. The only thing is the work permit, but it looks like a very expensive work permit, including the corporate income tax....

Yes, but then: Some people want to be legal.

That's right It's gotta be legal, the most cost effective legal approach is the sub-contractor approach suggested by KhunPer

Quote : To co-operate with an existing Thai company, doing the invoicing etc. on a commission base or plain fees, and perhaps also be able to include a work permit – kind of sub-contractor set-up, to be compared/opposed with the operating costs of a company and finding trusted Thai partners/shareholders.

The main problem may be domestic invoicing and domestic payments/transfers, and if OP attends a business meeting, without a work permit, i.e. company set-up

This is actually what will be happening, so you'll understand the issues, I'd obviously prefer to keep things as straightforward as possible.

[Noi657]

Hmm... Wonder how so many bar owners get away with owning a bar with no work permit!

Sure you do, but this topic is about how to conduct business in Thailand legally.

Correct.. This topic is!

[khunPer]

Hmm... Wonder how so many bar owners get away with owning a bar with no work permit!

Believe they do something like some of those I know of: Bar is owned by GF/wife “on the paper” and they stay themselves at the “right” side of the bar desk – i.e. mingle with the customers and let the girls/cashier/GF/wife serve and work behind the bar, so they never can be blamed for working illegal by immigration. You never see them behind the bar, because just one step behind the bar with a bottle or ashtray in the hand in a wrong moment, and they are out – happened to a friend of mine, who even did have a work permit, but not for working in a bar/restaurant.

Edited March 6, 2014 by khunPer

[PercyinOz]

Just been reading this thread, I am thinking of starting a business in Thailand, unless I am reading wrong it seems to be suggested that you can just pay the social fund for the 4 thai employees rather than having to pay their full salaries of 9000 baht per month, is this correct?

Sent from my GT-I9505 using Thaivisa Connect Thailand mobile app

[onthemoon]

Just been reading this thread, I am thinking of starting a business in Thailand, unless I am reading wrong it seems to be suggested that you can just pay the social fund for the 4 thai employees rather than having to pay their full salaries of 9000 baht per month, is this correct?

Sent from my GT-I9505 using Thaivisa Connect Thailand mobile app

That's incorrect. You have to employ four Thai staff and pay their salaries too, as part of the requirements for each work permit.