Can One Still Obtain Work Permit To Work For A Sole Proprietor?

[kudroz]

I am reffering to the work permit rules by the Department of Employment issued on September 30th 2004 which stipulates a foreigner can obtain a work permit for a sole propretor (natural person) if he meets certain requirements.

Has this changed? Can it still be done? I called Sunbelt in Chiang Mai - and they left me under the impression that this cannot be done.

Article 6. Regarding considering issuing the work permit under Article 4 to foreigners who apply for permission to work for a natural person employer who is not one having the character under Article 5, permission may be granted according to the following criteria:

(1) Foreigners working for an employer earning an income form business operation in the past year cycle or the amount year: one person may be permitted for every Baht seven hundred thousand, the maximum being three person;

(2) Foreigners working for an employer who has paid taxes to the government in the past year cycle: one person may be permitted for every Baht fifty thousand, the maximum being three person;

(3) Foreigners working for an employer having Thai employees: one person may be permitted for every four Thai employees, the maximum being three persons.

Article 7. The criterion under paragraph one shall be reduced by one half in the case where the permit applicant alien has a Thai spouse in a lawfully registered marriage and in open cohabitation.

[kudroz]

I would just like to add that I am aware that it is impossible to obtain an extension of stay based on business if you are working for a natural person. The immigration department only recognize the Ltd. company and the Ltd. Parnership.

[Maizefarmer]

To cut a long story short in reply to the question that started this thread the answer is YES - I started off running my company as a sole proprietership. It then grew into a different animal and I restructed things as a Ltd company.

While the company now turns over in excess of Bhat 20mill per year, my accountant is looking into the advantages of returning back to sole proprietership (dont ask me why - I am just a farmer who trusts his accountant - the same guy for over 12 years) - so yes, it is still possible.

If you are seriously interested in prusueing the subject I will dig up the fine detail for you - but perhaps it agood idea youput your situation into some context so that if I do comment, my comments are relivant to your particular circumstances.

Tim

[kudroz]

I am just looking to help start a small internet venture for my wife, and I'd be helping her along the way and I'd like the convenience of having a work permit and i'd be paying myself a little bit to get on the thai tax system as well.

[Sunbelt Asia]

Has this changed? Can it still be done? I called Sunbelt in Chiang Mai - and they left me under the impression that this cannot be done.

You can obtain a work permit, if you meet the criteria.

www.sunbeltasiagroup.com

[Maizefarmer]

I can assure you - it can be done, and I am very suprized SUBELT in Chang Mai said "no" - I can only imagine that the two of you did not communicate very well - but of course as SUBELT has now said, yes - you can get a WP as a sole propreiter (my words), the relivant words are - you will need to satisfy the criteria (sun belt words).

I would strongly suggest you go back to SUNBELT (possibly even phone them in Bangkok) - they will "hold your hand" through the whole process for a very reasonable fee, and get you there with a lot less stress than doing it by yourself.

Tim

[kudroz]

My wife called Sunbelt in Chiang Mai, we have dealt with Khun Krit on a few occasions before. Top notch guy I might add. When my wife talked with him, he mentioned that it couldn't be done and we needed a ltd company or partnership but that he was going to look into it.

We didn't follow up with him for a 2 weeks - waiting on getting her website ready in order to register it for e-commerce activities. Before contacting Sunbelt and benefiting from their free advise once again, I just favored asking it here to know if it was still possible to do.

After talking with Sunbelt today, Khun Krit in Chiang Mai did the necessary verifications and apparently it is indeed possible to do. We will contact him shortly to go foward with the application. Thanks again Sunbelt.

[service]

It's very rare to do this:

- Husband & Wife working together

- Thai wife hiring her husband (foreigner) to work by Baht 15,000 per month (less tax) in order to get working permit

- Having one year long term stay based on married status (400K in Thai bank account).

Wanna be? C'mon do something!

[giulio]

is my case

after tsunami destroy anithings about my shop and limited.partnership with my wife,from 1 years my wife open shop 100 per cent owner my wife,but i can work inside with a regular work permit because i'm married with she and have 2 baby toghether

WP requires to me 35ooo bath per months salary(2000bath tax+prakan samkom 1500bath per months)

my visa is marriage extension and anytime i must to show WP,salary and tax+400k bath

bye

Edited September 30, 2006 by giulio

[Maizefarmer]

Again Kudroz. with respect to al those who have advised you "no - not poossible", I must disagree - it can be done - but I emphasize, you wil need to meet the criteria - and exactly what those criteria are is where/why you are getting a "no" answer, i.e. I think the "criteria" you are seeking to meet or are representative of your particular circumstances are not been understood in the context of how you'd like to structure your WP.

Can you decribe what you circumstances are.

Look I am not expert on this, but let me try and share with you a scenario that I am told qaulifies an/the applicant to apply for a Sole Prprietyship WP.

An applicant comes to Thailand armed with a set of letters which demonstrate that he or she has been appointed as the sole represnetative/agent of a particular bran(s) of product - take for example amchine tools (i.e. a European manufactuer of lathes and milling machines), or of a brand(s) of agricultural machinary (which was exactly what my first WP was based on in the late 1990's).

In both the above cases the applicant is not a salaried employee of any of the companies he is appointed by - he is an independant agent, whose income will be based on his sales success, and by virture of that - any taxes paid wil be paid on his earnings and duties applicable to whatever equipment he sells (and trherefore has to be imported).

The applicant sets up an office - which becomes his office (loads of renatl offices in Bkk that you only pay for as you use).

He employees a driver cum gofer to do all his runnig around.

That was my situation the first time I applied for a WP (for myself - after I left the company I was employeed by).

I was setup as a Sole Propeirter. Now, can you relate your circumstances and what you want to doto this scenario?

Did I have to invest some money - yes I ddi and to be honest, although I dont remember what it was, it was nothing like !miilions of baht" - it was actually quite low.

Did I have to pay myself? - yes, I did (and however you look at it you need to live so you need money, and at the time I think I needed a "salary" of around Baht 25 000 - 35 000.

So what did I do well, what was done for me by the soliciter who set it al up - was that I regsieterd a company in Thailand as a "sole propreitership" and paid myself a salary from my own comapny - that was taxed accordingly. Well, what if you are not earning money? Thats missing the point i.e. you need to have money to live - so if its your own money, bank it in the company and draw out a salary - it can be a theoretical salary, because no one cares how much you actually spend - so long as you are showing the tax been paid on the legal minium amount.

The point been - amongst all the other considerations in setting up a sole proprietership is the amount of money involved - which by virtue of the type of company it is, usually means a limited capital base to start up with. So you will have to have the min capital base - and be able to demonstrate it. As to whether you actually can afford to spend it or not is another story.

The above I must emphasize is very much a SIMPLIFICATION of the process.

The important aspect to it lies in wanting to get a WP without having to have of the complications of a company setup in the conventional sense of how we understand having to normally satisfy a WP in Thailand.

There are fees that have to be paid - they will total around Baht 85 000 to get this up and running (that includes all legal /professional fees and government charges) - and the co-operation of some "silent partners" in the background (as their with a ot of foreign controlled and run companies in Thailand - which is quite proper and legal if gone about in the right way)- who you will never meet and will never have anything to do with the company (only present on paperwork to satisfy legal requirements - you will have 100% legal control over the business you conduct and 1000% legal control over the funds and it will be a 100% legal structure).

Can you decribe what you circumstances are.

Below are the seperat steps that have to be completed - and associated with each step is a fee - as said it totals around Baht 85K - 90K - I can PM this to you, but dont think I am atl iberty to divulge what each step costs, only because I think there are professional / commercial fees associated with a lot of the seperate steps - though that said, most of the cost is actually government fees and when you think of it in terms of time incurred and work to be done, you'll be only to happy to pay the fees - they realy are very reasonable and will save you a headache (not to mention a lot of running around).

The steps are as follows (and my understanding is that this will ultimately be a Sole Proprietership setup for you although the word its self is not actually mentioned here). As well - although the indication below is also that you are "associating" the company structure with other parties/ persons, they "silent" where applicable - in pratcise the only person who works will be you they are only on the paperwork to accomodate legal formation, but will have nothing to do with the day to running, the admin, or any control of finances. It will al be very much in your hands.

Company Registration - Attorney's fees for company registration

Preferred Share Setup - Attorney's fees for bifurcated share structure ( Optional)

Thai Joint Venture Service Share holder Introduction ( Optional)

Thai Joint Venture Service Share holder agreement

Tax ID - Corporate tax registration Foreign Director Income Tax registration

VAT ID

Social Fund registration

Work permit

Extension of stay based on business ( visa)

Extension of work permit until approved for the one year extension of stay based on business ( norm is three 30 day under consideration" stamps

Extension of stay based on business ( norm is three 30 day under consideration" stamps

Foreign Director Income Tax registration

Government Fee per 1 Million Baht of capitalization - I dont beleive 1 mill has to be put up front, the fee is per 1mil or part thereof (but I stand to be correcte don this point).

Government Fee for certification of document

Government Fee for duty stamp

Government extensions of work permit until approved for the one year extension of stay based on business ( norm is three 30 day under consideration" stamps

Government fee for one year work permit ( after the three "under consideration stamps" )

Government fee for the one year extension of stay based on business

Government fee for reentry permit - multiple or single entry.

In summary - yes you can get a WP as a Sole Propreiter - just has be gone about the right way.

It still interested then PM me and I will put you in touch with the person who does all this and does it very well indeed.

Tim

Edited September 30, 2006 by Maizefarmer

[Maizefarmer]

Soory guys - I kind'a repeated mnyself a few times above - am in the middle of milking my cows at the moment - trying to squeeze in sentances and paragraphs while squeezing a 150 tits full of milk!!!

I think its clear enough though.

31 cows left to "squeze" then I'm back to bed - so if there is a question and I dont answer now - will do so later.

I hope the above helps anyone who is interested in going about seting up s sole propreitership - it is for all inteents and pruposes the cheapest way to go about setting up a company for yourself, but it requires an expert to help you get things setup and structered properly and in the correct order. I am fairly confident that the above is a dnkum acurate description of those requirements and steps - but please correct me you know for a fatc that I am completly wrong on any particular step/point.

Tim

[maxtingtong]

I need an update: is it still possible nowaday in 2011? Is still valid this law?

Thanks

Max

[maxtingtong]

yes, it is, Max

[beechguy]

Was it really necessary to dredge up a 5 year old thread for this?

[wayned]

Just as much as it was to talk about the GOM at McDonalds on another forum!

[maxtingtong]

Was it really necessary to dredge up a 5 year old thread for this?

I think so, as nobody answered. And now I know that's still possible, as a friend of mine just did it. What's the matter mate? You work for a law firm?

[beechguy]

Was it really necessary to dredge up a 5 year old thread for this?

I think so, as nobody answered. And now I know that's still possible, as a friend of mine just did it. What's the matter mate? You work for a law firm?

No, I just think it would be easier to form a straight forward question for the forum, and not rehash 6 year old information.

[maxtingtong]

As long as I first search existing topics rather than open new one, last year I found this one. So I just added my question. Now I got more knowledge on the subject, so I underlined here. Really can't see the problem. Never known topics have expiration date as yogurts.

Cheers

[beechguy]

As long as I first search existing topics rather than open new one, last year I found this one. So I just added my question. Now I got more knowledge on the subject, so I underlined here. Really can't see the problem. Never known topics have expiration date as yogurts.

Cheers

Yes, from the number of comments it's received since you bumped it, I can see that there is a terrible amount of interest.

[maxtingtong]

I think the matter is not about lack of interest, but it's a kind of taboo topic here, where the main sponsor is a big law firm that can't make money on it. Shhhht!! Make open more 2M baht companies, take your bite, and goes happy with it