Thai company for visa + work permit

[yankee99]

I am not sure if this help you but this was my experience.

we are trying to open a limited company with my thai girlfriend, I worked in IT several years and she too, we have a real online business purpose, and to operate internationally we need to use gateway payments and other things that only work with non personal business, limited company is ok.

In Thailand for open limited company she need 2 partners more, the owners that can be friends or family with a percentage of investment, she need 1M to show in some way, but with the advice of accounting and business thai people she can do it as a temporal loan and just pay 15k to do all the paperwork registration and finally the 1M baht is not needed (ok this seems illegal but apparently for thai people is just a paperwork to be done)

Work Visa part

She asked about what she need get me a visa, the Non B and a work permit can be done but as a worker, I can't be one of the owners probably because the complexity and the upper amount of investment (I think was 2M but now after the crackdown the amount is bigger from 3M to 10M) still not sure, but to get the work permit they will do all the paperwork for 30k

But you need to count that for 1 farang worker you need to add 4 thai people worker so in the case of the limited company we have 3 owners, 1 farang 4 thai people workers

you need to pay the medical stuff to the government (sorry don't not how to call it) that is the percentage of the income is around 5-10%

I don't know the minimum salary for thai people (at this point I just reject the offer) but should be 6 or 8 k per month

The amount was 3,6k per month for the 4 thai people (probably there is a law about the minimum when a farang is on the team)

and for the farang more

the minimum income for a farang based in the actual thai rule is depending from your nationality

Europe and North America 50k per month

Japan, Korea, Singapore etc 45k

Russia, Eastern Europe, South America and South Africa 35k

Africa, Asia 25k

At this point we are just starting and really no way to contract Thai people, I usually work by projects and subcontract from my income, impossible to contract 4 thai to get them idle in a small office, but for she is pretty good since she can operate from any country remotely while we traveling, not need to contract more people in that terms.

You could have set your company up without showing any money (1m or 2m etc). To set the company up, you need 3 shareholders/partners. Do this in 3 Thai persons name with the following shares 49%, 49% and 2% with one of the Thai shareholders signing over to you at the same time. By doing this the Thai people don't have to explain or show where they got the money from at all. When the shares are split, make sure that the Thai's only have preference shares (10 shares=1 vote) and you hold all normal shares (1 share = 1 vote). This not only protects you it also means that even though you own 49% you still maintain full control of the company. My lawyer set my company up this way with my partner 49% (9800 shares = 980 votes), her mother 2% (400 shares = 40 votes) and myself with 49% (9800 shares = 9800 votes). This means that even if they get together and try to do anything it will not happen unless I agree, because their 1020 votes against my 9800 means I remain in full control. If your lawyer has not done this, get a new lawyer and change the structure.

For a work permit, yes you are correct 4 Thai workers = 1 foreigner. Social security needs to be paid for a min 4 Thai workers which is 9% (4.5% thai, 4.5% company). I pay the 9% out of the company to keep the staff happy. On top of this you will also have to pay personal tax on top.

Minimum salary is suppose to be 9000 baht per month for Thai workers and for the foreigner it totally depends on what region you come from. For me it was 50000 min per month. Only pay yourself the minimum on the books otherwise you will pay more tax (this is self explanatory). Thailand basically runs on a cash society so you will obviously be making much more than this. Your accountant will help you out here, so make sure you have a good one.

How much tax u pay from 50k?

Like I said before your monthly SS is 9% based on a max of 15000 so 1350 baht max per employee

[digitalchromakey]

I am not sure if this help you but this was my experience.

we are trying to open a limited company with my thai girlfriend, I worked in IT several years and she too, we have a real online business purpose, and to operate internationally we need to use gateway payments and other things that only work with non personal business, limited company is ok.

In Thailand for open limited company she need 2 partners more, the owners that can be friends or family with a percentage of investment, she need 1M to show in some way, but with the advice of accounting and business thai people she can do it as a temporal loan and just pay 15k to do all the paperwork registration and finally the 1M baht is not needed (ok this seems illegal but apparently for thai people is just a paperwork to be done)

Work Visa part

She asked about what she need get me a visa, the Non B and a work permit can be done but as a worker, I can't be one of the owners probably because the complexity and the upper amount of investment (I think was 2M but now after the crackdown the amount is bigger from 3M to 10M) still not sure, but to get the work permit they will do all the paperwork for 30k

But you need to count that for 1 farang worker you need to add 4 thai people worker so in the case of the limited company we have 3 owners, 1 farang 4 thai people workers

you need to pay the medical stuff to the government (sorry don't not how to call it) that is the percentage of the income is around 5-10%

I don't know the minimum salary for thai people (at this point I just reject the offer) but should be 6 or 8 k per month

The amount was 3,6k per month for the 4 thai people (probably there is a law about the minimum when a farang is on the team)

and for the farang more

the minimum income for a farang based in the actual thai rule is depending from your nationality

Europe and North America 50k per month

Japan, Korea, Singapore etc 45k

Russia, Eastern Europe, South America and South Africa 35k

Africa, Asia 25k

At this point we are just starting and really no way to contract Thai people, I usually work by projects and subcontract from my income, impossible to contract 4 thai to get them idle in a small office, but for she is pretty good since she can operate from any country remotely while we traveling, not need to contract more people in that terms.

You could have set your company up without showing any money (1m or 2m etc). To set the company up, you need 3 shareholders/partners. Do this in 3 Thai persons name with the following shares 49%, 49% and 2% with one of the Thai shareholders signing over to you at the same time. By doing this the Thai people don't have to explain or show where they got the money from at all. When the shares are split, make sure that the Thai's only have preference shares (10 shares=1 vote) and you hold all normal shares (1 share = 1 vote). This not only protects you it also means that even though you own 49% you still maintain full control of the company. My lawyer set my company up this way with my partner 49% (9800 shares = 980 votes), her mother 2% (400 shares = 40 votes) and myself with 49% (9800 shares = 9800 votes). This means that even if they get together and try to do anything it will not happen unless I agree, because their 1020 votes against my 9800 means I remain in full control. If your lawyer has not done this, get a new lawyer and change the structure.

For a work permit, yes you are correct 4 Thai workers = 1 foreigner. Social security needs to be paid for a min 4 Thai workers which is 9% (4.5% thai, 4.5% company). I pay the 9% out of the company to keep the staff happy. On top of this you will also have to pay personal tax on top.

Minimum salary is suppose to be 9000 baht per month for Thai workers and for the foreigner it totally depends on what region you come from. For me it was 50000 min per month. Only pay yourself the minimum on the books otherwise you will pay more tax (this is self explanatory). Thailand basically runs on a cash society so you will obviously be making much more than this. Your accountant will help you out here, so make sure you have a good one.

How much tax u pay from 50k?

Depends on your allowances, I am married with two kids at school and pay about 5% tax on 50,000 pcm income.

Single, with standard social insurance contributions, plus no allowable charitable donations, mortgage, or insurance, then you are looking at more like 10%.

Edited August 16, 2014 by digitalchromakey

[xavreb]

single, without any mortgages/life insurances/etc with 50K monthly salary, your personal income tax to be paid will be exactly 27,650 THB

50,000/moth = 600,000/year

u can deduct 99,000 THB

=> 501,000 THB

from 0 to 150K => 0% -> 0THB

from 150k to 300k =>5% -> 7500THB

from 300k to 500K =>10% -> 20,000 THB

from 500k to 750K =>15% -> 150 THB

Total tax 27,650 THB

Edited August 16, 2014 by xavreb

[ITGabs]

Great info!

with one of the Thai shareholders signing over to you at the same time.

Can you explain more about this point, "signing over to you" is like he or she is giving their rights to you? I didn't know about that.

[ITGabs]

There is no minimum salary requirement for foreigners to obtain a work permit.

The salary requirement comes into play when one wants to obtain a permission to say extension based on employment.

OK that make senses since English teachers can't get 50k, but what the "extension based on employment" do? what is the difference?

[bapoboy]

Thinking about taking up work in Thailand? The good news is that the Thai government has fixed minimum wages for foreigners working in Thailand which are obviously significantly higher than the minimum wages for Thai people. There are four different types, depending on the employee’s country of origin.

• 50,000 Baht/month: Western European Countries, Australia, Canada, Japan, and USA
• 45,000 Baht/month: South Korea, Singapore, Taiwan and Hong Kong
• 35,000 Baht/month: Asian Countries, South America, Eastern European Countries, Central American Countries, Mexico, Turkey, Russia and South Africa
• 25,000 Baht/month: African Countries, Cambodia, Myanmar, Laos and Vietnam

On top of that comes income tax and payments into the social fund. this is litle bit <deleted> up, foreginer from vietnam,laos,cambodia,myanmar and singapore have more minimum wage then the local, when the minimum wage in singapore for pepole there is 25.000bath a month(1000$)

I am not sure if this help you but this was my experience.

we are trying to open a limited company with my thai girlfriend, I worked in IT several years and she too, we have a real online business purpose, and to operate internationally we need to use gateway payments and other things that only work with non personal business, limited company is ok.

In Thailand for open limited company she need 2 partners more, the owners that can be friends or family with a percentage of investment, she need 1M to show in some way, but with the advice of accounting and business thai people she can do it as a temporal loan and just pay 15k to do all the paperwork registration and finally the 1M baht is not needed (ok this seems illegal but apparently for thai people is just a paperwork to be done)

Work Visa part
She asked about what she need get me a visa, the Non B and a work permit can be done but as a worker, I can't be one of the owners probably because the complexity and the upper amount of investment (I think was 2M but now after the crackdown the amount is bigger from 3M to 10M) still not sure, but to get the work permit they will do all the paperwork for 30k

But you need to count that for 1 farang worker you need to add 4 thai people worker so in the case of the limited company we have 3 owners, 1 farang 4 thai people workers

you need to pay the medical stuff to the government (sorry don't not how to call it) that is the percentage of the income is around 5-10%

I don't know the minimum salary for thai people (at this point I just reject the offer) but should be 6 or 8 k per month

The amount was 3,6k per month for the 4 thai people (probably there is a law about the minimum when a farang is on the team)

and for the farang more

the minimum income for a farang based in the actual thai rule is depending from your nationality

Europe and North America 50k per month

Japan, Korea, Singapore etc 45k

Russia, Eastern Europe, South America and South Africa 35k
Africa, Asia 25k

At this point we are just starting and really no way to contract Thai people, I usually work by projects and subcontract from my income, impossible to contract 4 thai to get them idle in a small office, but for she is pretty good since she can operate from any country remotely while we traveling, not need to contract more people in that terms.

[mataleo]

for 50k/month u ll have to pay 27,650 THB

What?

Per year??

[xavreb]

for 50k/month u ll have to pay 27,650 THB

What?

Per year??

yes, per year

[ITGabs]

single, without any mortgages/life insurances/etc with 50K monthly salary, your personal income tax to be paid will be exactly 27,650 THB

50,000/moth = 600,000/year

u can deduct 99,000 THB

=> 501,000 THB

from 0 to 150K => 0% -> 0THB

from 150k to 300k =>5% -> 7500THB

from 300k to 500K =>10% -> 20,000 THB

from 500k to 750K =>15% -> 150 THB

Total tax 27,650 THB

hahah ok that make sense now so this is what you need to pay by year. deducting the 99.000 THB is a 6.06%?, actually I should paid my self just 35k because I am south american

Salary	Year	
35000	420000	   
deduct	69300	6.060606%?
total   350700	
		
0 to 150k 0%		150000  0
from 150k to 300k 5%    150000	7500
from 300k to 500K 10%   50700	5070
from 500k to 750K 15%   0       0
		                12570

There are another things to paid based on company incomes too, I am not sure but for Thai people company if the amount of income by year is lower than 1,5M is exempt of taxes, but if it is up must pay the VAT 7%? I can't find that info now

Edited August 16, 2014 by ITGabs

[mataleo]

Thinking about taking up work in Thailand? The good news is that the Thai government has fixed minimum wages for foreigners working in Thailand which are obviously significantly higher than the minimum wages for Thai people. There are four different types, depending on the employee’s country of origin.

• 50,000 Baht/month: Western European Countries, Australia, Canada, Japan, and USA
• 45,000 Baht/month: South Korea, Singapore, Taiwan and Hong Kong
• 35,000 Baht/month: Asian Countries, South America, Eastern European Countries, Central American Countries, Mexico, Turkey, Russia and South Africa
• 25,000 Baht/month: African Countries, Cambodia, Myanmar, Laos and Vietnam

On top of that comes income tax and payments into the social fund. this is litle bit up, foreginer from vietnam,laos,cambodia,myanmar and singapore have more minimum wage then the local, when the minimum wage in singapore for pepole there is 25.000bath a month(1000$)

I am not sure if this help you but this was my experience.

we are trying to open a limited company with my thai girlfriend, I worked in IT several years and she too, we have a real online business purpose, and to operate internationally we need to use gateway payments and other things that only work with non personal business, limited company is ok.

In Thailand for open limited company she need 2 partners more, the owners that can be friends or family with a percentage of investment, she need 1M to show in some way, but with the advice of accounting and business thai people she can do it as a temporal loan and just pay 15k to do all the paperwork registration and finally the 1M baht is not needed (ok this seems illegal but apparently for thai people is just a paperwork to be done)

Work Visa part

She asked about what she need get me a visa, the Non B and a work permit can be done but as a worker, I can't be one of the owners probably because the complexity and the upper amount of investment (I think was 2M but now after the crackdown the amount is bigger from 3M to 10M) still not sure, but to get the work permit they will do all the paperwork for 30k

But you need to count that for 1 farang worker you need to add 4 thai people worker so in the case of the limited company we have 3 owners, 1 farang 4 thai people workers

you need to pay the medical stuff to the government (sorry don't not how to call it) that is the percentage of the income is around 5-10%

I don't know the minimum salary for thai people (at this point I just reject the offer) but should be 6 or 8 k per month

The amount was 3,6k per month for the 4 thai people (probably there is a law about the minimum when a farang is on the team)

and for the farang more

the minimum income for a farang based in the actual thai rule is depending from your nationality

Europe and North America 50k per month

Japan, Korea, Singapore etc 45k

Russia, Eastern Europe, South America and South Africa 35k

Africa, Asia 25k

At this point we are just starting and really no way to contract Thai people, I usually work by projects and subcontract from my income, impossible to contract 4 thai to get them idle in a small office, but for she is pretty good since she can operate from any country remotely while we traveling, not need to contract more people in that terms.

Is it Poland in estern or western european category?

On map its estern europe. But i was told 50k for me hmm

[mataleo]

for 50k/month u ll have to pay 27,650 THB

What?

Per year??

yes, per year

Oh thats ok

Cuz i was like wow month ehh

[monekyface]

If you are paying four Thai people 9,000 baht per month how much of that 36,000 baht will you pay into payroll tax? 5%? 450 baht per employee per month?

[Spoonman]

If you are paying four Thai people 9,000 baht per month how much of that 36,000 baht will you pay into payroll tax? 5%? 450 baht per employee per month?

None because they pay individual tax and @ 108,000 per year they are under the 150,000b threshold.

[digitalchromakey]

If you are paying four Thai people 9,000 baht per month how much of that 36,000 baht will you pay into payroll tax? 5%? 450 baht per employee per month?

None because they pay individual tax and @ 108,000 per year they are under the 150,000b threshold.

You will however still have to pay their social insurance contributions.

[digitalchromakey]

Thinking about taking up work in Thailand? The good news is that the Thai government has fixed minimum wages for foreigners working in Thailand which are obviously significantly higher than the minimum wages for Thai people. There are four different types, depending on the employee’s country of origin.

• 50,000 Baht/month: Western European Countries, Australia, Canada, Japan, and USA
• 45,000 Baht/month: South Korea, Singapore, Taiwan and Hong Kong
• 35,000 Baht/month: Asian Countries, South America, Eastern European Countries, Central American Countries, Mexico, Turkey, Russia and South Africa
• 25,000 Baht/month: African Countries, Cambodia, Myanmar, Laos and Vietnam

On top of that comes income tax and payments into the social fund. this is litle bit <deleted> up, foreginer from vietnam,laos,cambodia,myanmar and singapore have more minimum wage then the local, when the minimum wage in singapore for pepole there is 25.000bath a month(1000$)

I am not sure if this help you but this was my experience.

we are trying to open a limited company with my thai girlfriend, I worked in IT several years and she too, we have a real online business purpose, and to operate internationally we need to use gateway payments and other things that only work with non personal business, limited company is ok.

In Thailand for open limited company she need 2 partners more, the owners that can be friends or family with a percentage of investment, she need 1M to show in some way, but with the advice of accounting and business thai people she can do it as a temporal loan and just pay 15k to do all the paperwork registration and finally the 1M baht is not needed (ok this seems illegal but apparently for thai people is just a paperwork to be done)

Work Visa part

She asked about what she need get me a visa, the Non B and a work permit can be done but as a worker, I can't be one of the owners probably because the complexity and the upper amount of investment (I think was 2M but now after the crackdown the amount is bigger from 3M to 10M) still not sure, but to get the work permit they will do all the paperwork for 30k

But you need to count that for 1 farang worker you need to add 4 thai people worker so in the case of the limited company we have 3 owners, 1 farang 4 thai people workers

you need to pay the medical stuff to the government (sorry don't not how to call it) that is the percentage of the income is around 5-10%

I don't know the minimum salary for thai people (at this point I just reject the offer) but should be 6 or 8 k per month

The amount was 3,6k per month for the 4 thai people (probably there is a law about the minimum when a farang is on the team)

and for the farang more

the minimum income for a farang based in the actual thai rule is depending from your nationality

Europe and North America 50k per month

Japan, Korea, Singapore etc 45k

Russia, Eastern Europe, South America and South Africa 35k

Africa, Asia 25k

At this point we are just starting and really no way to contract Thai people, I usually work by projects and subcontract from my income, impossible to contract 4 thai to get them idle in a small office, but for she is pretty good since she can operate from any country remotely while we traveling, not need to contract more people in that terms.

These figures are the minimum wages to be eligible for an extension of permission to stay based on employment (National Police Order 327/2557 Case 2.1).

Nothing to stop you taking a job in Thailand on a lower salary, but you would not be able to get a Case 2.1 Extension.

[Phuketboy]

Great info!

with one of the Thai shareholders signing over to you at the same time.

Can you explain more about this point, "signing over to you" is like he or she is giving their rights to you? I didn't know about that.

At the time of setting up the company or after company is set up, get the Thai with the ordinary shares to sign/transfer their 49% over to you. It is easier to do at the same time they sign the shares section when setting up the company. The lawyer will hold onto the signed transfer form until the company setup is complete and then submit it one month later. If your lawyer is already in the process of setting your company up, get them to get this ready and make sure they split the shares as described. If you don't the thai's can get together and oust you out of the company. Your lawyer should know all about this setup/protection process. Where abouts are you located? If in Phuket, I can provide details of my lawyer.

[ITGabs]

Thank you Phuketboy, I am in ao mang, probably i will use that info in the future since my business or work is software as a service, i control everything from US and to push the start of my girlfirend into her own business is more like a franchise of mine but with things that she can sell like hosting vps designs webpages with the option of enterprise software or security, so basiclly is her business.

BTW i was reading about international taxes and I found this very interesting for the geek ones http://flagtheory.com/digital-nomad/ they use a combinations of companies just like what we were talking but more form a world point of view, using a combination of taxes, IP rules, residence process, banking etc like easy process to get residence/business in Singapore and NZ using a offshore company in HK with office in Thailand Vietnam or Philipines, probably we will move to Vietnam next

[mataleo]

What is gov insurance for farang on 35k salary that u have to pay every month.?

And how much is thai gov insurance for thai on 15k ?

Edited August 23, 2014 by mataleo

[ubonjoe]

What is gov insurance for farang on 35k salary that u have to pay every month.?

And how much is thai gov insurance for thai on 15k ?

I assume you mean social security payments not insurance.

It is 5% of salary up to a maximum of 750 baht per month. I will let you do the math.