Starting of Sole Proprietorship

[Aldebaran1981]

Dear all,

Just wanna ask some simple questions before proceeding with this process.

I intend to register a sole proprietorship under my Thai fiance.

This will require the least start up costs right?

In any case, after which I start my business and need to import products from overseas, do I import the products under her name or under the company's name?

If under the company's name, what are the extra add-ons apart from the VAT?

Thanks for any inputs!

[Maestro]

You cannot register a sole proprietorship in the name of your friend. She has to do the registration.

You cannot start your business because it is not your business. It is the business of your friend.

You cannot import goods in the name of your friend. She will have to do the importation and if she imports in her name she does not need a sole proprietorship for this.

After you get an employment contract with the sole proprietorship and the corresponding work permit you can import in the name of the sole proprietorship.

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[thailampang2012]

You cannot register a sole proprietorship in the name of your friend. She has to do the registration.

You cannot start your business because it is not your business. It is the business of your friend.

You cannot import goods in the name of your friend. She will have to do the importation and if she imports in her name she does not need a sole proprietorship for this.

After you get an employment contract with the sole proprietorship and the corresponding work permit you can import in the name of the sole proprietorship.

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And also...will be better to get info with an import/export broker about customs requirements to get a import/export license. By my knowledge, to get that license, the company or individual needs to qualify in some ways, type of company, capital, bonds, etc, etc.....

[godden]

Sounds a bit like what's yours is ours what's mine is my own

[glennb6]

I'd done some checking many months back about sole props. if you're an 'merican, technically you should be able to do an amenity treaty sole prop setup. not sure how a wp would be dealt with if you didnt have the req number of thai employees though. didnt proceed with it though and the legal firms I asked were not very clued in about this.

[maswov]

I'd done some checking many months back about sole props. if you're an 'merican, technically you should be able to do an amenity treaty sole prop setup. not sure how a wp would be dealt with if you didnt have the req number of thai employees though. didnt proceed with it though and the legal firms I asked were not very clued in about this.

To start run a business under the Thai American Amity Treaty, first you must set up a company in the US. This can be done easily in states such as Delaware and Nevada you can register a corporation for free. The benefit with this treaty is now you let the ministry know that you will be operating in Thailand rather than needing to obtain the permits for other foreign run business. All other rules such as work permits still apply.

[maswov]

I'd done some checking many months back about sole props. if you're an 'merican, technically you should be able to do an amenity treaty sole prop setup. not sure how a wp would be dealt with if you didnt have the req number of thai employees though. didnt proceed with it though and the legal firms I asked were not very clued in about this.

To start run a business under the Thai American Amity Treaty, first you must set up a company in the US. This can be done easily in states such as Delaware and Nevada you can register a corporation for free. The benefit with this treaty is now you let the ministry know that you will be operating in Thailand rather than needing to obtain the permits for other foreign run business. All other rules such as work permits still apply.

[Aldebaran1981]

I am not American though. I am from Singapore.

Planning to register a business and start up a small business for my fiancé to run.

Shall ask her to check on the necessary stuff ESP the import details.

[Acharn]

I'd done some checking many months back about sole props. if you're an 'merican, technically you should be able to do an amenity treaty sole prop setup. not sure how a wp would be dealt with if you didnt have the req number of thai employees though. didnt proceed with it though and the legal firms I asked were not very clued in about this.

My late wife ran a small convenience store for several months after we moved to Nakhorn Sawan. She was an accountant so she knew about all the legal requirements. There are various licenses you need and taxes in addition to VAT you have to pay.Depending on what you're selling there may be several regulatory agencies you have to deal with. If I intended to open a sole proprietorship in the U.S., where I'm at least moderately familiar with the laws, the first thing I would do would be hire a lawyer. The second thing I would do would be hire an accountant. If you don't have enough money to hire those two professionals, you don't have enough capital to open a business and you are certain to be among the 90% who fail within the first year. Getting opinions at ThaiVisa is a good idea, but bear in mind that free advice is worth what you pay for it.

[Acharn]

I am not American though. I am from Singapore.

Planning to register a business and start up a small business for my fiancé to run.

Shall ask her to check on the necessary stuff ESP the import details.

I think Thailand has concluded Treaties of Amity with many countries since the first one with the U.S. There should be a Commercial Section in your embassy that should be able to help you. There's also commercial agreements through ASEAN. You really need a lawyer. I would suggest going to your embassy and see if the commercial attache there will recommend one. In the American embassy they're not supposed to, but might do it anyway. Obviously I don't know what rules Singaporeans might obey.

It changes all the time, but back in 1982 I retired from the U.S. Army in Germany and chose Thailand as my place of retirement, so they shipped all my household goods and my car here. I found the various Thai bureaucrats I dealt with very helpful. Prem was the Prime Minister at the time, and corruption was not an issue. If you have lots of patience and lots of time you might be able to do everything yourself, but I'd really recommend hiring a lawyer.

[yankee99]

There really is no such thing as a sole proprietorship in thailand as i know. Even a 100% thai ltd needs three thais to be created. One can hold 98% and two 1% each.

Basically your soon to be wife will need to form a ltd,. co. then get it vat and customs registered. Then importing is not a problem as it all computerized with your customs broker.

You will pay vat 7% tax if taxable and port/broker fees 15,000-20,000 a container. Yes the importing will be in the company name.

[CaptHaddock]

There really is no such thing as a sole proprietorship in thailand as i know. Even a 100% thai ltd needs three thais to be created. One can hold 98% and two 1% each.

Basically your soon to be wife will need to form a ltd,. co. then get it vat and customs registered. Then importing is not a problem as it all computerized with your customs broker.

You will pay vat 7% tax if taxable and port/broker fees 15,000-20,000 a container. Yes the importing will be in the company name.

Not true. Unincorporated, sole proprietorship exists and, just like in the US, is the default form of business ownership. It doesn't need to be registered, unless there are employees in which case payment must be made to the Thai social security system. Do you think those sidewalk noodle vendors are operating as limited liability corporations?

[yankee99]

There really is no such thing as a sole proprietorship in thailand as i know. Even a 100% thai ltd needs three thais to be created. One can hold 98% and two 1% each.

Basically your soon to be wife will need to form a ltd,. co. then get it vat and customs registered. Then importing is not a problem as it all computerized with your customs broker.

You will pay vat 7% tax if taxable and port/broker fees 15,000-20,000 a container. Yes the importing will be in the company name.

Not true. Unincorporated, sole proprietorship exists and, just like in the US, is the default form of business ownership. It doesn't need to be registered, unless there are employees in which case payment must be made to the Thai social security system. Do you think those sidewalk noodle vendors are operating as limited liability corporations?

Agreed but the op is talking about a real business with more then some tin plywood and a light bulb. He's talking about vat customs etc. I think I was clear in that if you want a company initially it can not be sole proprietorship. As in the USA your company can be.

[Aldebaran1981]

yes I'm asking about a proper general import to retail/wholesale business in Thailand.

[CaptHaddock]

There really is no such thing as a sole proprietorship in thailand as i know. Even a 100% thai ltd needs three thais to be created. One can hold 98% and two 1% each.

Basically your soon to be wife will need to form a ltd,. co. then get it vat and customs registered. Then importing is not a problem as it all computerized with your customs broker.

You will pay vat 7% tax if taxable and port/broker fees 15,000-20,000 a container. Yes the importing will be in the company name.

Not true. Unincorporated, sole proprietorship exists and, just like in the US, is the default form of business ownership. It doesn't need to be registered, unless there are employees in which case payment must be made to the Thai social security system. Do you think those sidewalk noodle vendors are operating as limited liability corporations?

Agreed but the op is talking about a real business with more then some tin plywood and a light bulb. He's talking about vat customs etc. I think I was clear in that if you want a company initially it can not be sole proprietorship. As in the USA your company can be.

I don't see any reason why the OP's wife, who is Thai, cannot start and export/import business as a sole proprietor. There are good reasons to incorporate, such as to protect personal assets from liabilities that arise from the business, but I don't believe that it is a legal requirement to incorporate. You certainly don't have to incorporate to pay VAT or customs.

[Neilcnx]

I am not American though. I am from Singapore.

Planning to register a business and start up a small business for my fiancé to run.

Shall ask her to check on the necessary stuff ESP the import details.

I think you're confusing starting a business with getting engaged: only one of those events offers any advantge in being a sole proprietor.

[yankee99]

There really is no such thing as a sole proprietorship in thailand as i know. Even a 100% thai ltd needs three thais to be created. One can hold 98% and two 1% each.

Basically your soon to be wife will need to form a ltd,. co. then get it vat and customs registered. Then importing is not a problem as it all computerized with your customs broker.

You will pay vat 7% tax if taxable and port/broker fees 15,000-20,000 a container. Yes the importing will be in the company name.

Not true. Unincorporated, sole proprietorship exists and, just like in the US, is the default form of business ownership. It doesn't need to be registered, unless there are employees in which case payment must be made to the Thai social security system. Do you think those sidewalk noodle vendors are operating as limited liability corporations?

Agreed but the op is talking about a real business with more then some tin plywood and a light bulb. He's talking about vat customs etc. I think I was clear in that if you want a company initially it can not be sole proprietorship. As in the USA your company can be.

I don't see any reason why the OP's wife, who is Thai, cannot start and export/import business as a sole proprietor. There are good reasons to incorporate, such as to protect personal assets from liabilities that arise from the business, but I don't believe that it is a legal requirement to incorporate. You certainly don't have to incorporate to pay VAT or customs.

Wrong!!!!

You will need a por kor 20,commercial bank acct and other documents to register with customs. You will need a co ltd to get the por kor 20 and commercial acct. You will need to do monthly filings with revenue once all this is done.

You will also need a sign in front of your place of business with the company name. Your inventory must be located at your registered address and a inventory sheet is supposed to be on hand to match your invoices.

[Aldebaran1981]

that's a lot of jargon for me to comprehend!!

[TobiasML]

To do it properly you should register a co ltd.. To get an import and export license, which allow you foreign trading you will need to be vat registered. Depending on the items you would like to import/export you might need as well specific licenses for that. To avoid any issues down the line with personal property, etc. would be to setup an co. Ltd. anyway as that will protect you from any regress from 3rd parties. Not from the government though. You would be able to compare it with a Pte. Ltd. In Singapore. Be aware that Thailand is more restricted in trading and account handling then Singapore. I would recommend you to speak to a good lawyer. To setup a company with proper registration and documents/agreements will cost around THB 100.000 and will avoid long term pain. I have known a few which tried the route without and had to pay a lot more in the long term to get it back on track. I can recommend JNP Legal. Jnplegalthailand.com but would advise you to sit down with a few lawyers and discuss the pricing and different options. They might be able to assist as well in getting you the different licenses.

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[Manny]

I wish I had a dollar for every time I've seen this scenario. First question you should ask is "why doesn't your finance have a well to do Thai husband", Whoever controls the money controls the relationship. Also import duties in Thailand a very rude. Better you find something to export which is much easier and make sure you hold the keys to the overseas customers or that could be circumvented also. Whatever you do don't buy real estate in a Thai girls name as it's like paying your rent in advance for decades when you could rent the place for 10 years for one fifth of the buy price. Then the relationship goes south and legally you have no right to anything keep it simple keep control of everything! If you pay you are a "Good Farang" if you don't pay you are "BAD Farang" Understand so now act accordingly. When in Rome do as the Romans do! Don't do anything for a Thai girl that a Thai man of equal social stature wouldn't do. Remember you are the "Guy with the travel budget" so Thailand is your oyster. I your girlfriend doesn't honor the rules of her own culture kick it to the kerb OK

[treetops]

3 hours ago, Manny said:

First question you should ask is . . . . <snip>

I hope he asked it 8 years ago.  That's when he started the thread.