Running official business in own or rented villa?

[YandC]

Hi,

we will be relocating to Thailand by end of October this year and aplanning to establish one or two SME businesses.

My wife is Thai and I will be on an educational visa for the first year.

As we do not need any expensive offices for our business we want to start off in our villa. Yet we are noot sure if it is possible at all, if it is possible in a rented villa and if yes, what kind of business will be legal.

Hope I can get some information on this topic

Thanks

[Sunbelt Asia]

So long as you do not work in the business and do not have a work permit your wife can start her business and run it out of her home with no employees. If you are planning on working in the business in the future then she would be advised to start a Thai limited company with yourself as one of the partners. There must be three minimum and the majority of shares must be owned by a Thai person.

This would enable you to obtain a work permit in the future through the business but you will need t register the capital of the business as 2 million baht and once you apply for the work permit you will need to have four Thai employees. If your wife wants to register with less capital it is always possible to register more capital later on but it is probably easiest if done from the first

Also its important to note that if you use a rented villa for the business you will need to obtain the landlord's permission and documentation from the landlord to register the company.Once the company rents the villa, the company will have the responsibility of withholding taxes on rental payment. Be aware that many landlord's of residential properites are not willing to have their rental income deducted as well as to declare rental income and paying additional tax to the Revenue Department. Sunbelt Asia Legal Advisors would be happy to offer you a free initial consultation when you arrive in Bangkok in October.

[sunbeltlegal][/sunbeltlegal]