Work Permit For Company Director

[haroldc]

I'm a director of a Thai company. I don't work for the company, don't receive director's compensation, and -- although I do have signing authority -- never actually sign company documents. 3 questions:

1) To be 100%, bullet-proof legal, do I need a work permit now?

2) If in the future I were to receive compensation for being a director (but not an employee), would I need one?

3) If in the future I needed to sign company documents, would I need one?

All advice and information greatly appreciated.

[Sunbelt Asia]

I'm a director of a Thai company. I don't work for the company, don't receive director's compensation, and -- although I do have signing authority -- never actually sign company documents. 3 questions:

1) To be 100%, bullet-proof legal, do I need a work permit now?

No unless you sign documents in Thailand, which you state you don't.

2) If in the future I were to receive compensation for being a director (but not an employee), would I need one?

If you reside in Thailand and are receiving compensation for being a director, yes you need a work permit.

3) If in the future I needed to sign company documents, would I need one?

If you need to sign the documents when you are in Thailand, you need a work permit. If you are signing the documents while you are

outside Thailand, you don't need a work permit.

www.sunbeltasiagroup.com

[RWA]

I'm a director of a Thai company. I don't work for the company, don't receive director's compensation, and -- although I do have signing authority -- never actually sign company documents. 3 questions:

1) To be 100%, bullet-proof legal, do I need a work permit now?

No unless you sign documents in Thailand, which you state you don't.

2) If in the future I were to receive compensation for being a director (but not an employee), would I need one?

If you reside in Thailand and are receiving compensation for being a director, yes you need a work permit.

3) If in the future I needed to sign company documents, would I need one?

If you need to sign the documents when you are in Thailand, you need a work permit. If you are signing the documents while you are

outside Thailand, you don't need a work permit.

www.sunbeltasiagroup.com

Dear Sunbelt,

would you please be so kind to give a tip, where to find the exact, "crystal clear" citation of the Laws/rules for the above made answers/statements? ... I cannot find any and need to know the exact, proper wording of rules applied to this particular matter ... would you help please? Thank you, iva

[Maizefarmer]

Not possible..........thats why SB is in business, but rest assured his word on the matter is as solid as gospel.

Tim

[Sunbelt Asia]

I'm a director of a Thai company. I don't work for the company, don't receive director's compensation, and -- although I do have signing authority -- never actually sign company documents. 3 questions:

1) To be 100%, bullet-proof legal, do I need a work permit now?

No unless you sign documents in Thailand, which you state you don't.

2) If in the future I were to receive compensation for being a director (but not an employee), would I need one?

If you reside in Thailand and are receiving compensation for being a director, yes you need a work permit.

3) If in the future I needed to sign company documents, would I need one?

If you need to sign the documents when you are in Thailand, you need a work permit. If you are signing the documents while you are

outside Thailand, you don't need a work permit.

www.sunbeltasiagroup.com

Dear Sunbelt,

would you please be so kind to give a tip, where to find the exact, "crystal clear" citation of the Laws/rules for the above made answers/statements? ... I cannot find any and need to know the exact, proper wording of rules applied to this particular matter ... would you help please? Thank you, iva

You'll never find "crystal clear" citations. The answers given were from talking to the Labor Dept heads and understanding the Alien Employment Act B.E. 2521 (Decree No. 322)

www.sunbeltasiagroup.com

[Sunny Valentine]

Dear Sunbelt,

how would you (and the authorities involved) judge the following (theoretical) case:

Farang, retired, on retirement Visa in Thailand, has a business idea, and some available capital. He finds the right Thai Partners, both for working and finance, and starts a company with him being an investor, maybe 40%.

Apart from developing the product and the production and marketing etc. plans (work that can theoretically as well as practically be done abroad, outside Thailand) he is in no way involved in the daily routines of the company.

But, as the company and its product turns out to be successful, he is entitled to a dividend, a share of the companies profits, after a while.

I understand he does not need a work permit, and will have to pay taxes for his income in Thailand. Does that change or endanger his retirement status? Also, would there be a way that his income (supposed it is over the 800000 a Year mark) would suffice for an extension of his Visa?

[Sunbelt Asia]

I understand he does not need a work permit, and will have to pay taxes for his income in Thailand. Does that change or endanger his retirement status?

No it would not change his status. It's just like he invested in IBM stock. He does not need a work permit to get a dividend or would it effect his retirement status. Only if he worked in the company, would that change.

Also, would there be a way that his income (supposed it is over the 800000 a Year mark) would suffice for an extension of his Visa?

Yes this would suffice.

www.sunbeltasiagroup.com

[RWA]

You'll never find "crystal clear" citations. The answers given were from talking to the Labor Dept heads and understanding the Alien Employment Act B.E. 2521 (Decree No. 322)

www.sunbeltasiagroup.com

Dear Sunbelt,

many thanks for your response, i.e. expertise!

Yet, let me see ... if there's no a "crystal clear" citation, does it mean that an "exceptions" might be accepted/tolerated on some "special occasion"/under specific circumstances ...? ... taken as what is NOT unambiguously forbidden (named/specified) may be allowed - " if ": ...

well, I found the Alien Employment Act B.E. 2521 (Decree No. 322) http://www.teachasiaonline.com/pmwiki/inde...521?action=diff where is "quite clearly" stated that: "a natural person who is not of Thai nationality;" and wishes to "work" means engaging in work by exerting energy or using knowledge whether or not in consideration of wages or other benefit", MUST become a holder of a Work Permit., ... fair enough, BUT: no where is to find what are a duties/responsibilities of one's company duly registered/authorized Director ...?

I mean, ... if such an alien is happen to be a founder of a Co.,Ltd., and a majority shareholder and one of registered director when "any one director can sign singly with the company's seal affixed to bind the company", then there is nowhere said that he MUST be also a holder of a work permit to do so !!! ...

to be more precise, if such a company has the number of 3 registered directors, one alien - holder of a work permit, one Thai and one more alien without a work permit being appointed as a General Director (kind of company supervisor), who does not do any "work" otherwise, doesn't receiving any sort of "compensations", etc., but needs to sign off a document (prepared by the other company directors earlier) while none of them is available - isn't it his "Director's duty" though? ... could such an "occasional signature" (under company "emergency circumstances") be considered as a "work done"...?! ... according the Alien Employment Act, he hardly can be considered (and perhaps prosecuted) as an "alien engaged in work", noh?!

That would lead to absolutely ridiculous situations, when such a company director shall be "caught working" while attempting to pay some company's bills (as being " exerting energy or using knowledge") or signing off any company documents necessary for various applications, forms, etc.( and there's always a load of those) or even while drawing a money from a company bank account?

So, I rather like to believe that an alien who is the one of registered company directors on board, and perhaps also a majority company shareholder, yet not ENGAGED in any sort of regular work within the company - so not a holder of work permit, still CANNOT be restricted to SIGN a certain documents/agreements on company behalf when "time is of essence" and none of other company director's available?

advise please....