Directors Work Permit Regulations

[JimmyGreaves]

I want to do some IT work while in Thailand for my 49% 2M company and pay into my Thai company account the proceeds from abroad, for this I would like to get a Work Permit. Not fulltime in Thailand but have a OA for the purpose of visting friends etc.

Do I need 4 Thai employees to do this? If not what is the process?

Cheers

[autonomous_unit]

I think, by the book, you do not need Thai employees for a work permit if you do not seek permission to stay on the basis of the work permit.

However, IT is one of those areas highlighted in the officials' operating instructions where Thailand is trying to improve itself. If they decide you are a foreign expert, they may put a stipulation in the work permit that you do knowledge transfer, which requires documenting some training at the renewal time for the work permit. They also pressure you heavily to have Thai employees for this... we do not know for certain if you can document training of a non full-time employee, e.g. a student or intern. I am stuck with such a requirement, to train two employees. We've found the work permit office to be unsympathetic to the idea that we do not need these employees for our current client workload.

This means that you take your chances if you try to cover IT work or consulting in your work permit job description, as opposed to just director duties. Even with just director duties, I am wondering if they would still want knowledge transfer if they find out you are a "foreign expert"... (it is hard to explain how a company with IT services in its mission is not going to require some IT-related employees, either you or some locals).

It seems like everyone expects you to operate in the gray area w/o a work permit if you have only foreign business for yourself as a consultant. Once you incorporate here, they seem unwilling to consider the possibility that you do not have a growing business that is going to involve a bunch of Thais... that is just my impression from personal experience.

[~G~]

You do not need 4 employees. Your company has to be VAT regsitered and with a registered capital of 2M baht. Your position needs to be one that is allowed for foreginers. I never heard of problems when the position is management.

Go to the Ministry of Labour - Employment department, and get the application form and list of documents you need to file. They speak English so you can ask questions if neccessary.

If you don't want to bother with the footwork, collecting the documents and filling the forms, there are service providers such as Indo-Siam or Sunbelt that can do it for you.

[SunbeltAsia]

I think, by the book, you do not need Thai employees for a work permit if you do not seek permission to stay on the basis of the work permit.

However, IT is one of those areas highlighted in the officials' operating instructions where Thailand is trying to improve itself. If they decide you are a foreign expert, they may put a stipulation in the work permit that you do knowledge transfer, which requires documenting some training at the renewal time for the work permit. They also pressure you heavily to have Thai employees for this... we do not know for certain if you can document training of a non full-time employee, e.g. a student or intern. I am stuck with such a requirement, to train two employees. We've found the work permit office to be unsympathetic to the idea that we do not need these employees for our current client workload.

This means that you take your chances if you try to cover IT work or consulting in your work permit job description, as opposed to just director duties. Even with just director duties, I am wondering if they would still want knowledge transfer if they find out you are a "foreign expert"... (it is hard to explain how a company with IT services in its mission is not going to require some IT-related employees, either you or some locals).

It seems like everyone expects you to operate in the gray area w/o a work permit if you have only foreign business for yourself as a consultant. Once you incorporate here, they seem unwilling to consider the possibility that you do not have a growing business that is going to involve a bunch of Thais... that is just my impression from personal experience.

The Officers always have the discretion to use whatever requirement they like.

As for the Labor Dept., we have processed now close to 5,000 work permits and we never had the Labor Dept require any Thai employees to get a work permit.

As for immigration, if you your companies objective is "Consultant" if you employ one Thai employee, we can get you a extension of stay based on business.

Immigration has different criteria than the Labor Dept. Hence why they would require one Thai employee and the labor Dept no Thai employees.

Companies objective is "IT" then Immigration would require 4 Thai employees and the Labor Dept still would have a requirement of 0 Thai employees.

Some people would say how could you not involved Immigration based on business, even though they have a work permit. If you had a extension based on marriage, education, investment then it would not be a problem.

Otherwise you would obtain a one year multi entry visa outside Thailand and do visa runs every 90 days. When you came back into Thailand you would need to revalidate your work permit. You would be legal and have no Thai employees requirement.

www.lawyer.th.com

[JimmyGreaves]

The objective is to try and make the company a trading company. At the moment I only manage 4 months to 5 months of the year in Thailand. 3 or 4 trips with maximum stay 2 months then return to UK. So am not really worried about extension of stay.

Sunbelt:

The Articles (No. Sor Jor. Wor Bor (Special) do say to to engage in the business of providing consultancy and advisory pertaining to administration.........

Can I achieve my objective by saying the gf (Director with less shares) earned the money thus eliminating my need to the WP at the moment.

If I do get the WP what is the revalidate procedure and will this require time out of my limited stay in Thailand?

Thanks

Edited July 2, 2006 by jflundy

[SunbeltAsia]

The objective is to try and make the company a trading company. At the moment I only manage 4 months to 5 months of the year in Thailand. 3 or 4 trips with maximum stay 2 months then return to UK. So am not really worried about extension of stay.

Sunbelt:

The Articles (No. Sor Jor. Wor Bor (Special) do say to to engage in the business of providing consultancy and advisory pertaining to administration.........

Can I achieve my objective by saying the gf (Director with less shares) earned the money thus eliminating my need to the WP at the moment.

If I do get the WP what is the revalidate procedure and will this require time out of my limited stay in Thailand?

Thanks

They go by what the objective is listed on the Vat filing. If it is "Consultant" only 1 Thai employee is required to get a extension of stay based on business. ( I know you state this is not important to you but I bring it up for other readers)

As for the work permit, nothing states you must have employees to get one. No matter what your objective is on the Vat application.

If you are working than you must have a work permit, even if you do not get compensated for this. You simply get a one year multi entry visa . Every 90 days, you do the extension of the work permit. Our firms professional fee is 1,600 Baht to help you and if we are involved, you do not need to go to the Labor Dept for this procedure.

www.lawyer.th.com