Grace Period for new Thai company to hire thai staff?

[NewInPatts]

Hey,

What or is there any grace period on hiring thai staff when opening a thai company and applying for a work permit?

I just can't believe that every company automatically has 4 employees per foreigner. Theres gotta be an interview process to hire staff and so on.

Anyone knows the specifics about it? If I was to open a thai company tomorrow, sit in an office and start posting job ads it would obviously take time to get 4 employees for my work permit.

So whats the roadmap on this?

[Gsxrnz]

First, you set up the company and have it registered. Then you employ four Thais and commence paying them and paying tax/social security etc. Then you apply for the work permit.

You can't get the work permit before you actually have the staff employed.

I don't know if they have an official "grace" period, but I know two chaps who have done it and they took about 3 months to obtain/finalise their permits.

I'd strongly advise you to consult a lawyer or accountant on the process and use their services. The tax, VAT, and employment laws here are crazy. As are the accounting/tax audit requirements. You need to comply with some very weird and wonderful regulations and need professional advice to make sure you understand the rules.

[THAIJAMES]

Interesting actually as under Thai law you cannot sign or do any work without a work permit. So how do you hire people or sign contracts unless you have a work permit?

catch 22.

I started my business many years ago, when owners of businesses were not required to have a work permit.

[blackcab]

In Bangkok you need to show a minimum of 1 month's Social Fund receipts for your staff during the application process for a work permit.

No staff = no Social Fund receipts = no work permit.

[kingstonkid]

Interesting actually as under Thai law you cannot sign or do any work without a work permit. So how do you hire people or sign contracts unless you have a work permit?

catch 22.

I started my business many years ago, when owners of businesses were not required to have a work permit.

TJ

Remember to set up the company there already have to be Thais as majority owners. It would be possible to have them screen for employees and or make them employees. Not hard to find a cleaner, receptionist and a couple of people to hand out fliers.

You can develop the tests if they are going to have to do any and the questions that they answer as well as the video of the interview and then choose which ones you want to give a 3 month contract to.

Edited January 2, 2016 by kingstonkid

[NoshowJones]

First, you set up the company and have it registered. Then you employ four Thais and commence paying them and paying tax/social security etc. Then you apply for the work permit.

You can't get the work permit before you actually have the staff employed.

I don't know if they have an official "grace" period, but I know two chaps who have done it and they took about 3 months to obtain/finalise their permits.

I'd strongly advise you to consult a lawyer or accountant on the process and use their services. The tax, VAT, and employment laws here are crazy. As are the accounting/tax audit requirements. You need to comply with some very weird and wonderful regulations and need professional advice to make sure you understand the rules.

Reading your post, I just don't understand why any foreigner would want to start a company in Thailand.

All these employment laws?? I bet about half of them are not even necessary.

Thailand seems to go out of it's way to make things difficult for foreigners, any excuse for more and more paperwork as

the Thais in general don't seem to be very computer literate, give them 100 sheets of paper and they will ask for 101.

Well, we are "guests" in this country aren't we?

[SOTIRIOS]

...good luck....

[SOUTHERNSTAR]

First, you set up the company and have it registered. Then you employ four Thais and commence paying them and paying tax/social security etc. Then you apply for the work permit.

You can't get the work permit before you actually have the staff employed.

I don't know if they have an official "grace" period, but I know two chaps who have done it and they took about 3 months to obtain/finalise their permits.

I'd strongly advise you to consult a lawyer or accountant on the process and use their services. The tax, VAT, and employment laws here are crazy. As are the accounting/tax audit requirements. You need to comply with some very weird and wonderful regulations and need professional advice to make sure you understand the rules.

Reading your post, I just don't understand why any foreigner would want to start a company in Thailand.

All these employment laws?? I bet about half of them are not even necessary.

Thailand seems to go out of it's way to make things difficult for foreigners, any excuse for more and more paperwork as

the Thais in general don't seem to be very computer literate, give them 100 sheets of paper and they will ask for 101.

Well, we are "guests" in this country aren't we?

Dear possum if you consider this an hassle I advise you not to continue with the opening of your company as the rest of the journey maybe too much for you. The reality is to open a company was less than a hassle for me with less documents than to obtain a EU tourist visa for me and my children for a 3 week visit (I am divorced). The visa application was more than 100 pages and contained certified copies of the courts divorce order, abridged birth certificates for the children, letters from their university and school that they have registered for the next term, medical insurance for us at Euro 30 k per person, money in a bank account showing Euro 80 per person per day excluding air tickets and accommodation, due to me being self employed I had to show proof of my business and my business turnover etc etc etc. If I as a non OECD country citizen want to legally open my own company/business in the US, UK or EU it will cost me between $ 500 k and $ 2 million depending on the country. In Thailand you must jump through hoops to get the company registered but the capital needed is less than in the US, UK or EU and the visa process is for a non-OECD citizen much less of a problem here than there. It is easier to sneak into your countries and illegally open a business or claim asylum than for a person to legally open business there.

[thailandstupidlife]

And a grace period before immigration visit you to make problems ?

[NoshowJones]

First, you set up the company and have it registered. Then you employ four Thais and commence paying them and paying tax/social security etc. Then you apply for the work permit.

You can't get the work permit before you actually have the staff employed.

I don't know if they have an official "grace" period, but I know two chaps who have done it and they took about 3 months to obtain/finalise their permits.

I'd strongly advise you to consult a lawyer or accountant on the process and use their services. The tax, VAT, and employment laws here are crazy. As are the accounting/tax audit requirements. You need to comply with some very weird and wonderful regulations and need professional advice to make sure you understand the rules.

Reading your post, I just don't understand why any foreigner would want to start a company in Thailand.

All these employment laws?? I bet about half of them are not even necessary.

Thailand seems to go out of it's way to make things difficult for foreigners, any excuse for more and more paperwork as

the Thais in general don't seem to be very computer literate, give them 100 sheets of paper and they will ask for 101.

Well, we are "guests" in this country aren't we?

Dear possum if you consider this an hassle I advise you not to continue with the opening of your company as the rest of the journey maybe too much for you. The reality is to open a company was less than a hassle for me with less documents than to obtain a EU tourist visa for me and my children for a 3 week visit (I am divorced). The visa application was more than 100 pages and contained certified copies of the courts divorce order, abridged birth certificates for the children, letters from their university and school that they have registered for the next term, medical insurance for us at Euro 30 k per person, money in a bank account showing Euro 80 per person per day excluding air tickets and accommodation, due to me being self employed I had to show proof of my business and my business turnover etc etc etc. If I as a non OECD country citizen want to legally open my own company/business in the US, UK or EU it will cost me between $ 500 k and $ 2 million depending on the country. In Thailand you must jump through hoops to get the company registered but the capital needed is less than in the US, UK or EU and the visa process is for a non-OECD citizen much less of a problem here than there. It is easier to sneak into your countries and illegally open a business or claim asylum than for a person to legally open business there.

I have no intention , and never have had, of starting a business here, I don't mind sensible rules, but this is Thailand.

I am from the UK, and I think it would be a lot easier starting a business there than in Thailand.

In the UK, you do not do everything by the book, the rich people, MPs etc,etc, don't do things by the book, so why should we?

[steve187]

it does seem a catch 22, but i would guess setting up the company and choosing staff would be ok, just employ the book keeper first so he can sort out the wages,tax man etc.

I wish people would exit the bed on the correct side before posting.

[mjnaus]

Please ignore whatever people post here; unless they have experience dealing with the EXACT SAME labour office you yourself will be dealing with. In some places they do have a grace period during which you do not need any Thai staff for your work permit. In other places they do not have such a period. In yet other places, they simply do not care/do not know/do not enforce the Thai employee rule (one of my best friends has had his own company, with a work permit, for almost five years without ever having employed a single Thai person). Go to your local labour office and ask them what it is they require...

Edited January 2, 2016 by mjnaus

[aronp1]

It is not a requirement automatically.

Depends on type of business.

[blackcab]

It is not a requirement automatically.

Depends on type of business.

Would you care to explain what you mean? My understanding is that if you work, you need a work permit. And to get a work permit you need Thai staff and social fund payments.

What businesses can you legally work in without a work permit? Or what businesses can you get a work permit without employing Thai staff?

Edited January 3, 2016 by blackcab

[THAIJAMES]

Interesting actually as under Thai law you cannot sign or do any work without a work permit. So how do you hire people or sign contracts unless you have a work permit?

catch 22.

I started my business many years ago, when owners of businesses were not required to have a work permit.

TJ

Remember to set up the company there already have to be Thais as majority owners. It would be possible to have them screen for employees and or make them employees. Not hard to find a cleaner, receptionist and a couple of people to hand out fliers.

You can develop the tests if they are going to have to do any and the questions that they answer as well as the video of the interview and then choose which ones you want to give a 3 month contract to.

Most foreigners starting a company in Thailand would want to be the director of the company. They would not want to give rights to the other shareholders to sign contracts, etc... even if they had majority ownership.

Having said that, just setup the company and hire people before you get your work permit. As long as it is done in a timely manner you are unlikely to have any problems.

Edited January 3, 2016 by THAIJAMES