Thai girlfriend starting Sole Proprietary web-service company from a rented house

[GettingOlder]

I am helping out my girlfriend to start a small company as she seems to have some difficulties in getting concise information about the options and procedures.

Business area is right now restricted to web based consultancy / web design activities. No physical sale/import/export foreseen. The customer base will be mixed domestic/international, and for that latter reason we like to have some kind of formal registration.

The setup will be just an existing PC with internet connection from our rented house in Chiang Mai, where I am the registered tenant. Until further no employees although I will help/organise a bit in the background. I do not plan to obtain a work permit for that (I am currently staying on age retirement "visa").

We believe that a Sole Proprietary company would suffice as foresee no liability problems and seems easier procedure and lower running costs (book keeping etc.).

1. Although we prefer registration - does the company legally need to be registered at all ? Any registration options - DBD mentions only "commercial registration".

2. She does not plan to start any retail selling (web shop). Is E-commerce registration/certificate mandatory or advisable?

3. We understand that landlord has to approve the company registration at the address, and we would need the physical house book and letter of consent. We briefly mentioned our idea to landlord and she was somewhat reluctant. Is there any negative impact from landlord point of view (tax of rental etc)? How to convince landlord - any "proven methods", maybe pay extra rent (money compensation) is the way forward?

4. How difficult is the practical registration - which other documents are needed, and would use of a mediator, like Sunbelt or similar locally based company, be advisable.

5. What does a registration comprise - ie. do we receive a registration number, a paper document to be laminated and hung up at the desk, protection of company name? Is the registration time limited/expiring?

6. Invoicing VAT - as turnover will be less than 1.8 mio bht/yr we do not foresee obtaining a VAT number right away, but is that required/advisable for international customers ?

7. Can you point to other official English info source than the "dbd.co.th/dbdweb_en/main" I have found?

8. Would I be able to, while staying on retirement extension based on 800 kbht in bank account, obtain a work permit - assuming changing the company structure incl. funding 2 mio bht company capital, 4 Thai employees etc.

A lot of questions, which I decided to put forward here in the forum as assuming many have general interest. Thank you in advance.

[Somsak Lawyer]

You have done your homework. Thank you. Okay I am going to make the answers very easy for you. You are right on most except number 8. As you can not obtain a work permit under the Retirement Visa. You need a Non- Immigrant B class visa or Marriage Class to obtain a work permit. As she would be the only person working I still recommend the set up of a Thai company to make it sweet and legal. As for the VAT registration you are right you do not need to apply for that until the company has made 1.8 million Thai Baht, but you can apply for it before if you have clients that wish to claim the VAT you will need it. Please note that when I refer to you here in this reply please note that I am referring to your girlfriend except about the work permit. The company can be a 1 million baht capital company if your girlfriend is working alone and it is a fully Thai owned company with no foreigners on the company. The capital does not have to be paid in capital only for the purposes of DBD filings.

I would be more than happy to assist you and your girlfriend in helping with the set up or any and all legal and accounting services that are required.

Please do not hesitate to contact us at either 09 12393495 or 08 18089175

[somsak][/somsak]