can you register an online business in thialnd?

[ada78]

If I were to open a web design business online for example...

Would I be able to stay in the country as long as I want that way?

What kind of yearly taxes would need to be paid on something like that? I wouldn't actually be trying to make money selling web design and coding services to Thai's, I would simply be working for my clients overseas from Thailand...

[Soutpeel]

One suspects you could open the business if you capitalise the company to the tune of THB 2.0 mil and employ 4 Thais, and yes you could stay as long as you want on an extension of stay and work permit

But one suspects this not what you have in mind is it ?

[CharlieH]

Move to Business forum

[innerspace]

You can keep waiting until lots of people give you the answer you want to hear (and people will soon be saying you can do what you like just dont get caught). But soutpeel has summed up pretty much your only legal option.

Slightly easier if American or married but not by much.

Or you could search and read the answer 100 times already.

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[bluesofa]

Move to Business forum

When you said above "Move to Businees forum", did you mean as a mod you have moved it already, or were you telling the OP to move/re-ask the question in the Business forum?

I've searched, but can't find any more entries with that heading (even with Thailand spelt correctly, or mis-spelt as above).

Or maybe the thread has no more replies...

[NanLaew]

There are no more replies required.

[beano2274]

You can keep waiting until lots of people give you the answer you want to hear (and people will soon be saying you can do what you like just dont get caught). But soutpeel has summed up pretty much your only legal option.

Slightly easier if American or married but not by much.

Or you could search and read the answer 100 times already.

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Please tell why it is easier if you are American?

[Maestro]

Removed a nonsensical post.

[mikeSilom]

You can keep waiting until lots of people give you the answer you want to hear (and people will soon be saying you can do what you like just dont get caught). But soutpeel has summed up pretty much your only legal option.

Slightly easier if American or married but not by much.

Or you could search and read the answer 100 times already.

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Please tell why it is easier if you are American?

In theory it's because of a treaty between the US and Thailand. Not sure how it plays out in reality.

Called the Treaty of Amity for short.

Edited June 30, 2014 by mikeSilom

[Sirbergan]

One suspects you could open the business if you capitalise the company to the tune of THB 2.0 mil and employ 4 Thais, and yes you could stay as long as you want on an extension of stay and work permit

But one suspects this not what you have in mind is it ?

Exactly right, and one group of earners completely ignored by Thailand - there is no way freelancers can register and work lawfully (other than creating a Company Limited), even though they mostly earn their cash from clients based in other countries.

Owning a company specializing in translations into and from Scandinavian languages, I would be delighted to hire some in-house translators. The 4 Thai employee per foreigner with a work permit rule is a huge obstacle preventing us from growing. Where would I find Thai citizens with a sufficient level of both English and Swedish/Danish/Norwegian/Finnish so that I can hire Thai people that would earn our company money? It's simply not possible, as most of Scandinavians that are proficient enough in 2-3 languages still can't provide a translation good enough for the professional market. As such, I have to use freelancers I know instead of hiring a full-time in-house translator - unless I can make a profit while having 4 "inactive" Thai employees, that is.

It's probably a law made with all the best intentions, but in this modern day and age it's preventing companies from growing. I'm sure there are heaps of examples similar to mine. Obviously a law that must be modernized.

Edited July 1, 2014 by Sirbergan

[skypecoaching]

Totally right Sibergan< there are heaps of small business owners who can support themselves and their own family AND be willing to set it up all legally however the requirements are too costly to begin with. most likely you're already broke after a few months due to the expenses of just having your business here. I agree it is time to make some realistic changes so in effect they would actually get more money from a larger group of small business owners.

I would imagine that many freelancers etc wouldn't mind setting up shop here legally, and get a work/stay permit, if it was just more realistic and simpler.

let's hope we will see some changes in the near future so we can actually help build this beautiful country :-)

[Sirbergan]

Totally right Sibergan< there are heaps of small business owners who can support themselves and their own family AND be willing to set it up all legally however the requirements are too costly to begin with. most likely you're already broke after a few months due to the expenses of just having your business here. I agree it is time to make some realistic changes so in effect they would actually get more money from a larger group of small business owners.

I would imagine that many freelancers etc wouldn't mind setting up shop here legally, and get a work/stay permit, if it was just more realistic and simpler.

let's hope we will see some changes in the near future so we can actually help build this beautiful country :-)

A simple freelancer work permit (with some reasonable restrictions) would be a start. Thailand seems to want tourists who can support themselves, but what about the numerous freelancers who are willing and able to stay indefinitely and actually want to pay taxes in order to do just that in a legal way? They have no options if they don't have the means to open an office with 4 "Thai workers" for every foreigner. What's the result? Obviously, those workers will either stay in different countries, or work illegally online. And yes, they are an untapped resource, as they could have been tax payers.

[skypecoaching]

I totally agree, and think about this

If they want to clean up corruption and fraud this is another area they could make it easier to settle here, invest time and money in the country, really integrate and be part of the community instead of always doing the balancing act including visa runs etc

also, these requirements don't keep out the real criminals because they WILL have the money to set up shop and just live here as if nothing is wrong

[Sirbergan]

I totally agree, and think about this

If they want to clean up corruption and fraud this is another area they could make it easier to settle here, invest time and money in the country, really integrate and be part of the community instead of always doing the balancing act including visa runs etc

also, these requirements don't keep out the real criminals because they WILL have the money to set up shop and just live here as if nothing is wrong

Another good point. It doesn't prevent real criminals with deep pockets, but it does in many cases indeed inhibit honest business owners from expanding, and it incriminates freelancers doing honest work if they can't afford a limited company and staff. I don't see how that is or can ever be a good thing.

[Soutpeel]

Totally right Sibergan< there are heaps of small business owners who can support themselves and their own family AND be willing to set it up all legally however the requirements are too costly to begin with. most likely you're already broke after a few months due to the expenses of just having your business here. I agree it is time to make some realistic changes so in effect they would actually get more money from a larger group of small business owners.

I would imagine that many freelancers etc wouldn't mind setting up shop here legally, and get a work/stay permit, if it was just more realistic and simpler.

let's hope we will see some changes in the near future so we can actually help build this beautiful country :-)

A simple freelancer work permit (with some reasonable restrictions) would be a start. Thailand seems to want tourists who can support themselves, but what about the numerous freelancers who are willing and able to stay indefinitely and actually want to pay taxes in order to do just that in a legal way? They have no options if they don't have the means to open an office with 4 "Thai workers" for every foreigner. What's the result? Obviously, those workers will either stay in different countries, or work illegally online. And yes, they are an untapped resource, as they could have been tax payers.

Define reasonable restrictions then ?

Let's suppose they would give you the visa/WP if you capitalised the undertaking for Thb 1.0 million, paid your social security and private medical insurance as well as say a 20% withholding tax on all income, seeing as its not earned in Thailand

Is this reasonable ?

[manarak]

some pointers:

- income earned outside Thailand and that stays outside of Thailand for at least 12 months is not taxable in Thailand

- by OECD standard tax rules (simplified, there is more to this, but the following can be applied to Thailand), a person staying for more than 183 days is taxable in that country of stay. Two consequences: if one stays for more than 183 days in Thailand, above remark might be relevant. Second consequence: persons staying less than 183 in any country might not be easy to pin down regarding tax residence (if they severed ties with their home country), many do not pay taxes at all.

- doing business in Thailand, with either an address in Thailand, Thai suppliers, Thai employees or Thai customers, one better have a work permit, because sooner or later a competitor, an unhappy customer or supplier, staff member or a jealous fellow farang or ex-girlfriend wil use it as leverage.

- to get a work permit, it is necessary to be employed by a company. One can create the company. Americans can own 100% of the company (this does not help for the work permit), while other nationalities need to let Thai persons own 51%. Lawyers usually provide such shareholders with guarantees. The company should have at least 2m capital (only 25% need to be liberated) and needs 2 thai employees at the start, and 4 after a year. The ratio of 4 Thais for one work permit needs to be maintained, unless your company's size is sufficient to get noticed (i.e. pays a lot of tax) and can prove that it needs to recruit foreigners with a very special skillset not available in Thailand.

- tax reporting for small companies is cheap.

- if doing business abroad, that business could be conducted through an offshore company, not be taxed abroad, and after a year, not be taxed in Thailand either.

- officials need a search warrant to enter private quarters (i.e. not a shop or office), no warrants are issued for "snooping around because the foreigner is rumored to work on the internet"

- there are other means to get long stay visa than the B-Visa+work permit combination.

I'm not sure a "freelancer" status would really benefit a lot of people, since today freelancers can already do their strictly foreign business without interference, although not officially, and without any health insurance/social funds benefits (I'm not sure if these benefits are really attractive to successful freelancers).

What I am sure of is that such status would benefit Thailand and especially its treasury department.

[mccw]

Look at Hong Kong

[Issangeorge]

It's a new world where the job can be anywhere and the person doing the job somewhere else. It is time that not just Thailand, but all countries started to realize this.

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