Real Cost of Employing Four Staff For WP

[Chao Lao Beach]

I read this here today : "The cost is 432 Baht per month and you can have the payment taken out of your bank account."

What other cost madatry cost are there ?

[robblok]

If you are doing it real legal and not semi legal you need to pay them salary too.

What they are advising you here is ghost employees where you just pay into SS for 4 people and pay them a salary on paper while in reality they never get that money. They often sell it this way so people will start a company. This way your still not legal and open to abuse.

(at least that is what I understand if they say the cost is only 432 bt)

[digbat]

robblok, do you have to have the 4 employees if you just have 49% of the company & your wife has 51% ?

I just read it again, so its if you want a WP only--yes

Edited January 15, 2015 by digbat

[robblok]

i am no expert and you only need the 4 employees if you want a WP not because you own shares.

[TerryLH]

432 for SS is for those not working or not eligible in their current work for SS. They had to have been in an eligible position and payed into the system for 12 months.

For an employee, the amount is 5% of their salary, up to a max of 750 a month. The employer is required to put in the same amount.

[yankee99]

4 employees plus vat registration and in my case SS came to my shop not the Labour office to check. With vat you'll need monthly accounting services.

[EnglishJohn]

Don't forget you MUST pay yourself a minimum salary every month from the get-go. For my line of work, I was told it would be 50,000 baht per month. Plus you must have an office where your employees can work (they will want to see pictures of them all sat there looking happy).

Basically if you want to start a business which does generate immediate revenue then forget it.

[BlackJack]

yes many costs

some open and some hidden

do your homework

[makescents]

I asked that question and many more here

http://www.thaivisa.com/forum/topic/789117-how-much-does-it-actually-cost-to-start-a-company-to-get-a-work-permit/

[Chao Lao Beach]

yes many costs

some open and some hidden

do your homework

Yes, I am trying to do that.

It is a 100% owned Thai company.

I am aware of GST reporting monthly, that would be a fact of life. I am more concerned having 4 dead beat inlaws finiancially conected as employess to my misses

I am also concerned that the proposed biz expansion that the wifie (and influences) are thinking of would eventually involve me, and thus a work permit, and I am questioning if the added cost of it all is worth it, not concidering the effect on my sanity !!

So monthly

It seems, that 4 staff would be required at wages of about 6000b a month (300b X 5 days a week) This is open to "deals", I pay you, you pay back or what ever.

Any tax on that, which would be about nothing.

For an employee, the amount is 5% of their salary, up to a max of 750 a month. The employer is required to put in the same amount. = 1500b a month = 6000b a month, even if ghost employees.

Cost of work permit ?

6000b a month to the gov for 4 staff

personal income tax on I believe 50,000b a month + 1500b a month to the Gov system for me.

Anything else I have not thought of ?

[davo2003]

Yes. Philippines.

[BlackJack]

yes many costs

some open and some hidden

do your homework

Yes, I am trying to do that.

It is a 100% owned Thai company.

I am aware of GST reporting monthly, that would be a fact of life. I am more concerned having 4 dead beat inlaws finiancially conected as employess to my misses

I am also concerned that the proposed biz expansion that the wifie (and influences) are thinking of would eventually involve me, and thus a work permit, and I am questioning if the added cost of it all is worth it, not concidering the effect on my sanity !!

So monthly

It seems, that 4 staff would be required at wages of about 6000b a month (300b X 5 days a week) This is open to "deals", I pay you, you pay back or what ever.

Any tax on that, which would be about nothing.

For an employee, the amount is 5% of their salary, up to a max of 750 a month. The employer is required to put in the same amount. = 1500b a month = 6000b a month, even if ghost employees.

Cost of work permit ?

6000b a month to the gov for 4 staff

personal income tax on I believe 50,000b a month + 1500b a month to the Gov system for me.

Anything else I have not thought of ?

you are thinking about monetary costs

however if family controls all you are in for a real interesting life - they will take over once you have one all things

I see it all the time

[KamalaRider]

yes many costs

some open and some hidden

do your homework

Yes, I am trying to do that.

It is a 100% owned Thai company.

I am aware of GST reporting monthly, that would be a fact of life. I am more concerned having 4 dead beat inlaws finiancially conected as employess to my misses

I am also concerned that the proposed biz expansion that the wifie (and influences) are thinking of would eventually involve me, and thus a work permit, and I am questioning if the added cost of it all is worth it, not concidering the effect on my sanity !!

So monthly

It seems, that 4 staff would be required at wages of about 6000b a month (300b X 5 days a week) This is open to "deals", I pay you, you pay back or what ever.

Any tax on that, which would be about nothing.

For an employee, the amount is 5% of their salary, up to a max of 750 a month. The employer is required to put in the same amount. = 1500b a month = 6000b a month, even if ghost employees.

Cost of work permit ?

6000b a month to the gov for 4 staff

personal income tax on I believe 50,000b a month + 1500b a month to the Gov system for me.

Anything else I have not thought of ?

You got the basics correct.

Minimum salary for any staff, in a Thai company is 300 THB per working day, regardless how many % share holding it has with farang.

Assuming the company hires staff with social security.

If your wife own the company 100%, you need to have 40 000 THB as salary, 10 000 less than the stipulated 50 000THB, because you have a relationship with her through marriage.

Now here's the good news, because you are married to her you only need two staff to get a work permit.

What I don't know if that is valid if you don't have any shares in the company, check it up .

I do think you have to pay more in social and tax for yourself than your numbers but I could be wrong, I have staff who takes care of that so I'm not 100% up to date with the numbers.

Edited January 15, 2015 by KamalaRider

[TravelerEastWest]

If your wife is Thai you only need two employees.

If you project a low amount of Revenue then you don't need a VAT license.

You need a good CPA that speaks at least some English.

Lawyers are not needed and may cost quite a bit more than a CPA.

[konying]

It's 4% of the salary . 4% paid by company and 4% paid by employee, so in reality payment per person is NOT 432 but double that

[KamalaRider]

4 employees plus vat registration and in my case SS came to my shop not the Labour office to check. With vat you'll need monthly accounting services.

Wrong, VAT registration isn't needed until your company is taking in over 1 800 000 THB per year. (I think it's 1 800 000 today, but I'm not very sure, again as my previous post, my staff takes care of that)

[yankee99]

If your wife is Thai you only need two employees.

If you project a low amount of Revenue then you don't need a VAT license.

You need a good CPA that speaks at least some English.

Lawyers are not needed and may cost quite a bit more than a CPA.

I have to disagree and ask you to link the above. Although the Labour dept can issue a permit with less then 4 that does not mean they will. I can tell you chonburi won't. also vat registration was required in chonburi

[yankee99]

yes many costs

some open and some hidden

do your homework

Yes, I am trying to do that.

It is a 100% owned Thai company.

I am aware of GST reporting monthly, that would be a fact of life. I am more concerned having 4 dead beat inlaws finiancially conected as employess to my misses

I am also concerned that the proposed biz expansion that the wifie (and influences) are thinking of would eventually involve me, and thus a work permit, and I am questioning if the added cost of it all is worth it, not concidering the effect on my sanity !!

So monthly

It seems, that 4 staff would be required at wages of about 6000b a month (300b X 5 days a week) This is open to "deals", I pay you, you pay back or what ever.

Any tax on that, which would be about nothing.

For an employee, the amount is 5% of their salary, up to a max of 750 a month. The employer is required to put in the same amount. = 1500b a month = 6000b a month, even if ghost employees.

Cost of work permit ?

6000b a month to the gov for 4 staff

personal income tax on I believe 50,000b a month + 1500b a month to the Gov system for me.

Anything else I have not thought of ?

You got the basics correct.

Minimum salary for any staff, in a Thai company is 300 THB per working day, regardless how many % share holding it has with farang.

Assuming the company hires staff with social security.

If your wife own the company 100%, you need to have 40 000 THB as salary, 10 000 less than the stipulated 50 000THB, because you have a relationship with her through marriage.

Now here's the good news, because you are married to her you only need two staff to get a work permit.

What I don't know if that is valid if you don't have any shares in the company, check it up .

I do think you have to pay more in social and tax for yourself than your numbers but I could be wrong, I have staff who takes care of that so I'm not 100% up to date with the numbers.

The good news if he married and on a marriage extension already his salary can be 300 a day as the labor dept doesn't care about his salary. There is no requirement.

[yankee99]

h

It's 4% of the salary . 4% paid by company and 4% paid by employee, so in reality payment per person is NOT 432 but double that

exactly with a cap of 15000 baht I believe.

[Mudcrab]

4 employees plus vat registration and in my case SS came to my shop not the Labour office to check. With vat you'll need monthly accounting services.

Wrong, VAT registration isn't needed until your company is taking in over 1 800 000 THB per year. (I think it's 1 800 000 today, but I'm not very sure, again as my previous post, my staff takes care of that)

How much does your company make in profit each year?

Let me guess.

You are not sure.

You have staff for that.

[Mudcrab]

yes many costs

some open and some hidden

do your homework

Yes, I am trying to do that.

It is a 100% owned Thai company.

I am aware of GST reporting monthly, that would be a fact of life. I am more concerned having 4 dead beat inlaws finiancially conected as employess to my misses

I am also concerned that the proposed biz expansion that the wifie (and influences) are thinking of would eventually involve me, and thus a work permit, and I am questioning if the added cost of it all is worth it, not concidering the effect on my sanity !!

So monthly

It seems, that 4 staff would be required at wages of about 6000b a month (300b X 5 days a week) This is open to "deals", I pay you, you pay back or what ever.

Any tax on that, which would be about nothing.

For an employee, the amount is 5% of their salary, up to a max of 750 a month. The employer is required to put in the same amount. = 1500b a month = 6000b a month, even if ghost employees.

Cost of work permit ?

6000b a month to the gov for 4 staff

personal income tax on I believe 50,000b a month + 1500b a month to the Gov system for me.

Anything else I have not thought of ?

You may have to increase your wages estimate to reflect the 48hrs 6 days a week in Thailand. Budget for 8000.

[Mudcrab]

yes many costs

some open and some hidden

do your homework

Yes, I am trying to do that.

It is a 100% owned Thai company.

I am aware of GST reporting monthly, that would be a fact of life. I am more concerned having 4 dead beat inlaws finiancially conected as employess to my misses

I am also concerned that the proposed biz expansion that the wifie (and influences) are thinking of would eventually involve me, and thus a work permit, and I am questioning if the added cost of it all is worth it, not concidering the effect on my sanity !!

So monthly

It seems, that 4 staff would be required at wages of about 6000b a month (300b X 5 days a week) This is open to "deals", I pay you, you pay back or what ever.

Any tax on that, which would be about nothing.

For an employee, the amount is 5% of their salary, up to a max of 750 a month. The employer is required to put in the same amount. = 1500b a month = 6000b a month, even if ghost employees.

Cost of work permit ?

6000b a month to the gov for 4 staff

personal income tax on I believe 50,000b a month + 1500b a month to the Gov system for me.

Anything else I have not thought of ?

You may have to increase your wages estimate to reflect the 48hrs 6 days a week in Thailand. Budget for 8000.

It will depend a lot on the business - but factor in morning tea and lunches.

And of course theft - maybe add 15-20% to the budget guesstimate.

Then....add on the family factor - your guess is a good as mine and will really depend on the business.

A restaurant? The family and friends will never have to work for a feed again. At least until you go broke.

What sort of business are you considering - a furniture store - electrical and appliances?

[nickcar]

h

It's 4% of the salary . 4% paid by company and 4% paid by employee, so in reality payment per person is NOT 432 but double that

exactly with a cap of 15000 baht I believe.

5% of salary nowdays. Cap at 15000.

[konying]

h

It's 4% of the salary . 4% paid by company and 4% paid by employee, so in reality payment per person is NOT 432 but double that

exactly with a cap of 15000 baht I believe.

5% of salary nowdays. Cap at 15000.

Check again. Last time i checked with my accountant it was 4% and it was about 3-4 months ago.

DO not believe its 5 yet

[TravelerEastWest]

If your wife is Thai you only need two employees.

If you project a low amount of Revenue then you don't need a VAT license.

You need a good CPA that speaks at least some English.

Lawyers are not needed and may cost quite a bit more than a CPA.

I have to disagree and ask you to link the above. Although the Labour dept can issue a permit with less then 4 that does not mean they will. I can tell you chonburi won't. also vat registration was required in chonburi

I was writing from experience not a link. Also I am not fluent in Thai so I would not be able to cite and explain a link - sorry.

I can also tell you that at first I thought that you needed a VAT registration and signed up for one. Later I realized that if you are below a certain level of revenue a VAT registration is not required.

But often the VAT office will make you wait 3 years before you can unregister.

I have heard that different office's have different policies but the law is clear

As for issuing a wp with 2 workers when you have a Thai wife that is very straight forward if they give you a difficult time just hire a good CPA to do it for you.

Also depending where you are at times you can get a 2 year work permit maybe longer if you are under the BOI rules - here I am guessing as I have never worked for a BOI company.

[Yung]

Hi,

Im the newbie here n this is my first post. Please bare with me for the grammar error as Eng is not my mother tongue.

Been reading in forums almost daily but never write but cant stop my self today as read many doubting n wrong info given here.

1. To get a WP in company u no need to have a name or a share in company at all,its two diffrent things. But if it your real company,your own investment it ll be easier to get WP as claim u r real owner n u have a right go get WP so you can make it work.

2. Chonburi Emploment office always required 4 employees per one WP. n minimum wage they focus on is 9000 a month not 300 a day. even they know it not real but 9000 it looks reality than 6000 a month.nobody in Pattaya working for 6k amonth for aged. dont mention about bar girls we knew it not count.

so 5% from employess n 5%from company total 10% for SSO.8% is long gone. nearly 2 years i think.

so 4x900= 3600 for staffs SSO. If u r director of company or anyone that as director of company no need n not allow to have SSO.

For personal income taxes from 50k salary is about 2500 a month but this you can have taxes refund by end of year. so it not really 2500 it alot less.

Vat. you no need to registred VAT unless ur company income is over 1.8 mio a year.Do not worry if ur income is reach the revenue officer they ll come to you even you not notified them.

So try to Avoid or do not regidted VAT is real hussle nightmare!

The Employment office, Immigration or Embassies ll always required it but you(ur agency i guess) can always write explanation letter to them why you not have it.

The good excuse for new company is that u can give them explanation letters for docs that you not have. For first year company you ll have about 6-7letters for each office.

Hope this will help.

[Chao Lao Beach]

Some great points, So the 5%"employee" + 5% from company, is a 10% fee to the Gov Social Security office for each staff, I saw 15,000max, was that a typo or is it fifteen thousand, I read 1500 else where. ???

10% of 40-50k, is another 4000b down the drain.

I understand the VAT situation, not applicible in this discusion.

I really don't want a share in the company. It only requires one employee in reality, wife. I may be with her and potting around fiddleing on premisese, this is why I want to cover my self. Does it really make life easier be a share holder, I hope not. ??

This company will never hold any significant assets.

Having two ghost staff (1 aditional) on the ground of having a Thai wife is a big difference than 4, Anyone know other proviences around Bangkok, Rayong, Chanthaburi that only need a total of two ? Biz can be registered anywhere I guess.

No the bombshell, Yankee99 in post #18 said, "The good news if he married and on a marriage extension already his salary can be 300 a day as the labor dept doesn't care about his salary. There is no requirement."

Anyone know anything about this, first I have read. Yankkee99, are you 100% sure and in which provience, sounds good.

[yankee99]

The minimum wage requirements are to obtain your visa not your wp. with A marriage extension you don't need a b visa. Of course you already have met the marriage extension requirements.

It's a max 9% of 15000. So if someone has a salary of 100k they pay 4.5 employer + 4.5 employee of 15,000. Basically 15,000x9%

[Soutpeel]

Some great points, So the 5%"employee" + 5% from company, is a 10% fee to the Gov Social Security office for each staff, I saw 15,000max, was that a typo or is it fifteen thousand, I read 1500 else where. ???

10% of 40-50k, is another 4000b down the drain.

I understand the VAT situation, not applicible in this discusion.

I really don't want a share in the company. It only requires one employee in reality, wife. I may be with her and potting around fiddleing on premisese, this is why I want to cover my self. Does it really make life easier be a share holder, I hope not. ??

This company will never hold any significant assets.

Having two ghost staff (1 aditional) on the ground of having a Thai wife is a big difference than 4, Anyone know other proviences around Bangkok, Rayong, Chanthaburi that only need a total of two ? Biz can be registered anywhere I guess.

No the bombshell, Yankee99 in post #18 said, "The good news if he married and on a marriage extension already his salary can be 300 a day as the labor dept doesn't care about his salary. There is no requirement."

Anyone know anything about this, first I have read. Yankkee99, are you 100% sure and in which provience, sounds good.

The labour department don't care, there is no monetary stipulation for the WP, the minimum pay levels quoted are for the extension of stay ie immigration not the labour department

[Chao Lao Beach]

Also, I read else where, and it may have no credability, and may be only refering to teaching, but I read you are meant to have a Degree to get a WP.

We are starting to get some great information. Great stuff.

Edited January 15, 2015 by Chao Lao Beach