Business in Thailand

[dginoob]

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I second what blackcab is saying.

I set up a company here last year. End of June, beginning of July I flew over from the UK for 1 week, signed everything that needed to be signed to officially set up the company, interviewed potential recruits, and found an office to rent. I went back to the UK, got a 90-day single entry non-immigrant B visa and returned in the middle of August Thailand to live. Staff started on 1st September and before 90-days expired I got my work permit, and following that my 1-year extension. All done through the proper channels, with the process clearly explained beforehand

If what you are saying, digitalchromakey, is correct then no foreigner could set up a company here as they would be unable to legally work in it for 2 years. How could that possibly be the case?

Just as matter of interest what this remarkable achievement cost in terms of Lawyers,Agents and Fixers fees ?

Remarkable achievement? In what way is this remarkable to you? And to satisfy your interest, there was no 'Fixers' or 'Agents' required. I used a well known legal company based here in Bangkok (who sometimes advertise on this very site, if I am not mistaken). Costs were 66,300THB (Ex VAT) which included:

Company registration (including Tax ID)

VAT registration

Shareholder's Certificates & Registration Book

Preferred Share set-up

Personal Tax ID registration

Social Fund Registration

Work Permit Application

Company Seal

Minutes of meeting to open bank account

Introduction to JV company

JV Shareholder agreement

Travelling fees

3 month desk space including initial set up

Government fees amounted to 17,800THB which included:

Fee for 2 million baht capitalisation

Fee for 1 year work permit

Fee for social fund registration

Fee for Duty stamp

Fee for updating Company Affidavit

Fee for Certification of Documents.

There now, does that satiate your interest in what this 'remarkable achievement' cost?

[nzexpat]

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I second what blackcab is saying.

I set up a company here last year. End of June, beginning of July I flew over from the UK for 1 week, signed everything that needed to be signed to officially set up the company, interviewed potential recruits, and found an office to rent. I went back to the UK, got a 90-day single entry non-immigrant B visa and returned in the middle of August Thailand to live. Staff started on 1st September and before 90-days expired I got my work permit, and following that my 1-year extension. All done through the proper channels, with the process clearly explained beforehand

If what you are saying, digitalchromakey, is correct then no foreigner could set up a company here as they would be unable to legally work in it for 2 years. How could that possibly be the case?

Just as matter of interest what this remarkable achievement cost in terms of Lawyers,Agents and Fixers fees ?

Remarkable achievement? In what way is this remarkable to you? And to satisfy your interest, there was no 'Fixers' or 'Agents' required. I used a well known legal company based here in Bangkok (who sometimes advertise on this very site, if I am not mistaken). Costs were 66,300THB (Ex VAT) which included:

Company registration (including Tax ID)

VAT registration

Shareholder's Certificates & Registration Book
Preferred Share set-up

Personal Tax ID registration
Social Fund Registration
Work Permit Application
Company Seal

Minutes of meeting to open bank account

Introduction to JV company

JV Shareholder agreement

Travelling fees

3 month desk space including initial set up

Government fees amounted to 17,800THB which included:

Fee for 2 million baht capitalisation

Fee for 1 year work permit

Fee for social fund registration

Fee for Duty stamp

Fee for updating Company Affidavit

Fee for Certification of Documents.

There now, does that satiate your interest in what this 'remarkable achievement' cost?

Certainly very different "costs" to those which blackcab claimed to have incurred

[blackcab]

Perhaps that's because I didn't incur the costs - the company I work for did. The company directors and shareholders are all Thai and they already own extremely successful businesses in Thailand. I'm more than certain they know what price to pay for services.

Why do you sound so incredulous?

Have you ever set up a company or had a one year extension based on business? Do you speak from experience or are you shouting from the cheap seats about something you have no experience of?

[digitalchromakey]

Perhaps that's because I didn't incur the costs - the company I work for did. The company directors and shareholders are all Thai and they already own extremely successful businesses in Thailand. I'm more than certain they know what price to pay for services.

Why do you sound so incredulous?

Have you ever set up a company or had a one year extension based on business? Do you speak from experience or are you shouting from the cheap seats about something you have no experience of?

Having formed and run several enterprises here, I personally think that the fees you were charged were also more than reasonable for a company formation.

That fact that your company's exclusively Thai directors and shareholders run other successful companies may well have helped your agent to sway immigration into overlooking the missing items that I listed above in an earlier post.

All in all you got a good result for a very reasonable investment; however, like it or not, the applicable immigration rules were not followed to the letter, this to your certain benefit.

For whatever reason, you got lucky.

[timberpond]

Back to the main topic

Edw, as long that you are trying to open a small shop, being a foreigner is a disadvantage.

1) most thai small business don't register thus no tax

2) cap is 2 million baht which is about RM200k. You could open a coffee shop in area like muar or nilai (I don't know which part of Malaysia you are in) and make more money.

3) Your business is subject to tax and so are you (work permit).

Let's say you have a modest small business making 120k baht in sales a month. After rental/utilities, 4 employees and product cost, you left about 35k nett profit. After annual tax and personal income tax, you are looking at 20k baht. It is not comfortable with this money in neither bbk or phuket.

[timberpond]

Better to look for a job.

It's not that easy for everybody. Even if he can find a job, is he willing to make a 15k salary package and still fall in love with Thailand?

Agreed with you Austin, 15k baht is way to low to survive! Of course I gotta look for better pay.

The competition is strong for foreigner vacancy.

Come on edw... there are ways to do it. Making a comfortable amount (but not luxurious) to stay in Thai is possible. Just that going by setting up company and apply work permit is the wrong foot to start. Visa runs are unavoidable unless you take up Thai Elite. But then if you can afford a TE comfortably then a small business is not appealing to you.

[edw]

Better to look for a job.

It's not that easy for everybody. Even if he can find a job, is he willing to make a 15k salary package and still fall in love with Thailand?

Agreed with you Austin, 15k baht is way to low to survive! Of course I gotta look for better pay.

The competition is strong for foreigner vacancy.

Come on edw... there are ways to do it. Making a comfortable amount (but not luxurious) to stay in Thai is possible. Just that going by setting up company and apply work permit is the wrong foot to start. Visa runs are unavoidable unless you take up Thai Elite. But then if you can afford a TE comfortably then a small business is not appealing to you.

Yep,.now I have better picture about it. I think it's better for me to look for a job which offer me a good pay before I take any action to move over t Thailand. Then only talk about business when I really settled down there.

Anyway, my plan is to save more money while doing my research and planning, so I'll have more back up fund if I really move to Thailand.

[timberpond]

Yes... that's a better choice. Plan it for a year and visit various places in thailand for holiday during this year. If the urge is still strong as ever, do it since you are well prepare by then. Just an advise, have a really close thai friend/partner.