Work Permit & Running a Business in Thailand

[terak]

To all the work permit geeks out there, I would like to ask a question(s)

1. If my girlfriend (yes Thai) would like to start a small call centre business that specialises in calling ONLY to the UK and wants to employ only English speaking personnel (epats etc) would she be able to do this legally ?

I see many SEO, IT, marketing, web design type companies working out of Thailand (in various locations) employing non Thais and offering WPs. I also used to know a UK chef that was given a work permit (and I saw it) as he was cooking meals that the Thais couldn't cook.

Info please

[Mario2008]

She would need to hire 4 Thai nationals for every foreigner she want to hire.

[PoorSucker]

You will need two million capitalized in balance sheet and four Thai employees for every foreign staff.

So if you hire 10 UK expats, you need to show 20 Mbaht as assets on your balance sheet and employ 40 Thais.

[terak]

So these large companies that are already in Thailand will have to play by the same rules ? Do they employ the Thais or just pay the Taxes & Thai National Insurance (or equivalent)

[Wasa]

So these large companies that are already in Thailand will have to play by the same rules ? Do they employ the Thais or just pay the Taxes & Thai National Insurance (or equivalent)

Yes, they do. Or at least in my experience they do. I was employed here by a large engineering group (60,000+ worldwide employees) and they employed many Thais in various positions at all levels throughout the company structure. They were always moving expats in and out of the country depending on project needs and it appeared to be an ongoing juggling act for them to ensure they maintained the correct ratio of 4 Thais to each expat position/work permit. To the point where they would frequently move Thai staff between the BKK and Laem Chabang offices to ensure correct numbers because work permits are very location specific also.

[Wasa]

So these large companies that are already in Thailand will have to play by the same rules ? Do they employ the Thais or just pay the Taxes & Thai National Insurance (or equivalent)

She will also require two other Thai directors who will hold 51% of the issued shares. And these Thai shareholders cannot count as workers, which means you still need to hire four separate Thai workers in order to qualify for one work permit.

The UK Chef you mentioned having been issued a work permit is not unusual as the restaurant probably easily had the minimum four Thai staff already employed required to meet the ratio.

[stevenl]

So these large companies that are already in Thailand will have to play by the same rules ? Do they employ the Thais or just pay the Taxes & Thai National Insurance (or equivalent)

She will also require two other Thai directors who will hold 51% of the issued shares.<snip>

The other shareholders can hold 1% each.

[LivinLOS]

If she can register under BOI I understand the need for 4 Thais per WP can be reduced..

[Mudcrab]

So these large companies that are already in Thailand will have to play by the same rules ? Do they employ the Thais or just pay the Taxes & Thai National Insurance (or equivalent)

She will also require two other Thai directors who will hold 51% of the issued shares. And these Thai shareholders cannot count as workers, which means you still need to hire four separate Thai workers in order to qualify for one work permit.

The UK Chef you mentioned having been issued a work permit is not unusual as the restaurant probably easily had the minimum four Thai staff already employed required to meet the ratio.

Why? She is Thai, no need for any other shareholders at all. You are confusing a foreigner owning a business who the requires the 51% Thai shareholding.

[terak]

What is she does as a "trading as" and not as "limited company" ?

[Arkady]

So these large companies that are already in Thailand will have to play by the same rules ? Do they employ the Thais or just pay the Taxes & Thai National Insurance (or equivalent)

She will also require two other Thai directors who will hold 51% of the issued shares. And these Thai shareholders cannot count as workers, which means you still need to hire four separate Thai workers in order to qualify for one work permit.

The UK Chef you mentioned having been issued a work permit is not unusual as the restaurant probably easily had the minimum four Thai staff already employed required to meet the ratio.

I don't think there are any requirements to do with the company's board. I have had a WP which was also renewed once when the sole director was a foreigner, me. There are also definitely no requirements that shares need to be held by Thai directors. I have studied the requirements handed out by the Labour Ministry and the only requirements of this type I know of are: 2 million paid-up capital per WP (1 million if the foreign worker is married to a Thai) and 4 Thai employees enrolled in Social Security per WP.

BTW the idea of hiring a British chef is somewhat comical. Apart from Filipino cuisine, the British must boast virtually the worst food in the world. All decent restaurants there are foreign. When did you all last go out to a British or English restaurant in the UK?

[khunPer]

You will need two million capitalized in balance sheet and four Thai employees for every foreign staff.

So if you hire 10 UK expats, you need to show 20 Mbaht as assets on your balance sheet and employ 40 Thais.

I think I read that the first foreigners Work Permit requires 2 million baht in shareholder capital, and each additional WP 1 million extra – but check the present rules with a lawyer, whom you will need anyway to do a proper company set-up.

You need 4 Thai employees for each foreign WP and in some cases also a balance sheet for the first year of company operation.

A foreigner can hold maximum 49 percent of the shares in a Thai company, whilst 51 percent need to be held by Thai nationals. There shall be a minimum of 3 shareholders (including foreigners); and you cannot use so-called proxy shareholders anymore, each Thai shareholder needs to proof fund for the holding.

[Wasa]

So these large companies that are already in Thailand will have to play by the same rules ? Do they employ the Thais or just pay the Taxes & Thai National Insurance (or equivalent)

She will also require two other Thai directors who will hold 51% of the issued shares. And these Thai shareholders cannot count as workers, which means you still need to hire four separate Thai workers in order to qualify for one work permit.

The UK Chef you mentioned having been issued a work permit is not unusual as the restaurant probably easily had the minimum four Thai staff already employed required to meet the ratio.

Why? She is Thai, no need for any other shareholders at all. You are confusing a foreigner owning a business who the requires the 51% Thai shareholding.

Correct Mudcrab, I don't know why but I assumed he wanted a directorship in the company

[transam]

So these large companies that are already in Thailand will have to play by the same rules ? Do they employ the Thais or just pay the Taxes & Thai National Insurance (or equivalent)

She will also require two other Thai directors who will hold 51% of the issued shares. And these Thai shareholders cannot count as workers, which means you still need to hire four separate Thai workers in order to qualify for one work permit.

The UK Chef you mentioned having been issued a work permit is not unusual as the restaurant probably easily had the minimum four Thai staff already employed required to meet the ratio.

I don't think there are any requirements to do with the company's board. I have had a WP which was also renewed once when the sole director was a foreigner, me. There are also definitely no requirements that shares need to be held by Thai directors. I have studied the requirements handed out by the Labour Ministry and the only requirements of this type I know of are: 2 million paid-up capital per WP (1 million if the foreign worker is married to a Thai) and 4 Thai employees enrolled in Social Security per WP.

BTW the idea of hiring a British chef is somewhat comical. Apart from Filipino cuisine, the British must boast virtually the worst food in the world. All decent restaurants there are foreign. When did you all last go out to a British or English restaurant in the UK?

Weeeeeeeeeeell, shall we start with roast beef baking together potatoes to form beef tasting roast potatoes, garnished with a medley of steamed brussel sprouts, cabbage, carrots and broccoli, perhaps a few asparagus. Then a gravy (sauce) made to chefs perfection without the use of chilies.

You may have missed out chum..........

[terak]

So these large companies that are already in Thailand will have to play by the same rules ? Do they employ the Thais or just pay the Taxes & Thai National Insurance (or equivalent)

She will also require two other Thai directors who will hold 51% of the issued shares. And these Thai shareholders cannot count as workers, which means you still need to hire four separate Thai workers in order to qualify for one work permit.

The UK Chef you mentioned having been issued a work permit is not unusual as the restaurant probably easily had the minimum four Thai staff already employed required to meet the ratio.

BTW the idea of hiring a British chef is somewhat comical. Apart from Filipino cuisine, the British must boast virtually the worst food in the world. All decent restaurants there are foreign. When did you all last go out to a British or English restaurant in the UK?

I never said he was British (although he was) and I never said he was cooking British food (which he wasn't)

[BlackJack]

get a Lawyer

[craigp]

So these large companies that are already in Thailand will have to play by the same rules ? Do they employ the Thais or just pay the Taxes & Thai National Insurance (or equivalent)

She will also require two other Thai directors who will hold 51% of the issued shares. And these Thai shareholders cannot count as workers, which means you still need to hire four separate Thai workers in order to qualify for one work permit.

The UK Chef you mentioned having been issued a work permit is not unusual as the restaurant probably easily had the minimum four Thai staff already employed required to meet the ratio.

I don't think there are any requirements to do with the company's board. I have had a WP which was also renewed once when the sole director was a foreigner, me. There are also definitely no requirements that shares need to be held by Thai directors. I have studied the requirements handed out by the Labour Ministry and the only requirements of this type I know of are: 2 million paid-up capital per WP (1 million if the foreign worker is married to a Thai) and 4 Thai employees enrolled in Social Security per WP.

BTW the idea of hiring a British chef is somewhat comical. Apart from Filipino cuisine, the British must boast virtually the worst food in the world. All decent restaurants there are foreign. When did you all last go out to a British or English restaurant in the UK?

Weeeeeeeeeeell, shall we start with roast beef baking together potatoes to form beef tasting roast potatoes, garnished with a medley of steamed brussel sprouts, cabbage, carrots and broccoli, perhaps a few asparagus. Then a gravy (sauce) made to chefs perfection without the use of chilies.

You may have missed out chum..........

You've made my mouth water! What I would give for a decent British roast dinner right now. . . . . It's one of the very few things I miss.

[Thaiferna]

So these large companies that are already in Thailand will have to play by the same rules ? Do they employ the Thais or just pay the Taxes & Thai National Insurance (or equivalent)

Not necessarily there are different kind of companies...

A BOI company can get 4 foreigners for 1 Thai, plus tax exemption by 8 or 11 years, and many benefits more.

www.boi.go.th

But this is not an option for uneducated or non skilled.

Edited September 8, 2014 by Thaiferna

[Wasa]

So these large companies that are already in Thailand will have to play by the same rules ? Do they employ the Thais or just pay the Taxes & Thai National Insurance (or equivalent)

Not necessarily there are different kind of companies...

A BOI company can get 4 foreigners for 1 Thai, plus tax exemption by 8 or 11 years, and many benefits more.

www.boi.go.th

But this is not an option for uneducated or non skilled.

Yes, BOI registration is only possible for businesses that are undertaking the BOI approved industries/activities.

It involves quite a rigorous approval procedure to gain approval.

And you have to tip in another 1 million baht on top of the 2 million you've already put in for registered capital.

[innerspace]

Boi is an option for some businesses but call centre is not one of them. Needs prior approval (which I have been through and gained) and no need for an additional million invested.

Whoever said no other shareholders is needed since she is Thai, correct for a sole trader but no work permits on that. Limited company needs 3 shareholders whether all Thai or not.