Registering a Limited Company

[waters]

I previously ran a Ltd. Co. back in 2001. The company was sold in 2004.

I gather the shareholder requirements have changed since then.

Also wondering about a couple of things this time around.

To start - this will be my wife's company (she's a professional - and this is a 'real' business.

I won't be involved, at least for the first year.

Is the minimum registered capital amount 1,000,000 Baht? And will 25% need to be paid in before 90 days as before? It used to be that if shares were not issued, that registered capital did not have to be paid (I think).

My first question, is that assuming a year from now, we have an income and cash account that has reached 2 million or more Baht - can the company's cash balance be used qualify for a work permit application?

Also - I seem to recall reading somewhere that the capitalization requirements for a work permit was only 1 million baht if the application is married to a Thai national? Is this true?

Thoughts?

[Sunbelt Asia]

Since you wish to be a shareholder and part owner, unless you are American (which would qualify you for an Amity company) then the option is a majority owned Thai company with three shareholders, it is no longer 7 shareholders. Since you are married to a Thai national then 1 million baht in registered capital and four Thai employees would allow you to obtain a work permit (An Amity company requires 3 million baht in registered capital)

Please be aware that registered capital is not necessarily cash in the bank but it can be assets or cash in the bank. Initially 25% should be paid up in the first 90 days to ensure that the company would be able cover its start up expenses (like paying for the rent/rental deposit etc, buying equipment, office furniture). However, this is not usually checked on.

The remaining 75% is expected to be paid up within a year and will need to be shown in the company's annual audit at year end. The auditor will see on the shareholders list that all shares have been paid up. They will then expect to see 1 million baht (less expenses with bills) sitting in the company’s bank account or in assets. (or 3 for the Amity company)

If you would like to make an appointment for a free consultation please send me a PM with your email and we can set up an appointment to go over all the requirements in detail.

[sunbeltlegal][/sunbeltlegal]