The 2 Million Paid up capital a company "needs" for a WP question

[Chao Lao Beach]

"The company would need 2 million baht of registered capital, and if you want a work permit the business would have to employ at least 4 Thai's, pay their social security payments" .

So a company is set up and owned by my misses and 4 inlaws are on the books who hang around all day annoying anyway scabbing money, this would just make it formal !!! What is this 2 mill baht requirement? I was told "in the bar" no one cares about it....... I don't subscribe to that point of view. Can anyone please explain it please ?

[ubonjoe]

If married to a Thai the registered capital only needs to be 1 million.baht. Registered capital is an amount the company is registered as for an additional fee when it is registered.. It does not have to be real capital.

Some work permit offices still allow for only 2 Thai employees if married to a Thai.

[elviajero]

The Thai employees could be in-laws but the DOL do sometimes check up to see that they actually work for the company and aren't just nominees.

[ChaangNoi]

Could I set up a company and pay my wife and maid? I pay them both already, might as well get a WP?

[elviajero]

Could I set up a company and pay my wife and maid? I pay them both already, might as well get a WP?

Why would you want to?

[jacksam]

Our of interest. Have you had a company in farang world before. The annual tax assessment done by account ain't cheap. Not matter how small. Maybe it's not a big deal but certainly worth a look. Also you refer to "on the books" don't think that will cut it

[jacksam]

Could I set up a company and pay my wife and maid? I pay them both already, might as well get a WP?

Why would you want to?

Perhaps to facilitate obtaining a visa.

[Gulfsailor]

Ok. Many people don't understand what the registered capital is (for). A company limited is a company that is its own judicial entity. It can go into debt and the shareholders and or directors are not responsible for it (gross negligence or fraud excepted). So when the debt burden becomes too large a bankruptcy is requested and all debt (and the company) is gone. In order to protect other businesses and customers from a limited company debt default the owners are liable for at least a fixed portion, this is the registered capital amount. In an ideal world this will be paid up front (eg personal money put into the company upon starting). In a less ideal world the curator will have to go after the owners for the registered capital part when not paid up front. But in any case the owner is only liable for that part.

That's why it is so important to check the registered capital of a company when engaging in a large transaction with it. I sometimes see large condo developers offering all kind of guarantees via contracts using a separate entity whose registered capital is a mere 500,000 Baht, meaning that's how much 'own' money the owners have at risk. One lawsuit against them, and they'll just walk away from the 500,000 baht company, keeping all the profits in a separate entity.

[sunnyjim5]

Could I set up a company and pay my wife and maid? I pay them both already, might as well get a WP?

Why would you want to?

Perhaps to facilitate obtaining a visa.

If the OP is married he would be best advised to stay with the visa/extension options marriage to a Thai provides.

The only "visa" which forming a company would facilitate is the possibility of a "B" visa which has stringent requirements.

[Gulfsailor]

"The company would need 2 million baht of registered capital, and if you want a work permit the business would have to employ at least 4 Thai's, pay their social security payments" .

So a company is set up and owned by my misses and 4 inlaws are on the books who hang around all day annoying anyway scabbing money, this would just make it formal !!! What is this 2 mill baht requirement? I was told "in the bar" no one cares about it....... I don't subscribe to that point of view. Can anyone please explain it please ?

If your local labor dept is not too engaged in actual checking it should be doable to get a WP this way. Extension at immigration for reason of employment might be a bit trickier nowadays. But if you can show actual work being done and revenue made, then it should be ok. It certainly helps if the company is 100% Thai owned and you are not married or related to the owner(s). Do be advised that payroll and accounting fees will set you back around 200,000 Baht per annum. For visa purposes only, the Thai elite visa is a lot cheaper than going the company/WP route.

[blackcab]

"The company would need 2 million baht of registered capital, and if you want a work permit the business would have to employ at least 4 Thai's, pay their social security payments" .

So a company is set up and owned by my misses and 4 inlaws are on the books who hang around all day annoying anyway scabbing money, this would just make it formal !!! What is this 2 mill baht requirement? I was told "in the bar" no one cares about it....... I don't subscribe to that point of view. Can anyone please explain it please ?

If your local labor dept is not too engaged in actual checking it should be doable to get a WP this way. Extension at immigration for reason of employment might be a bit trickier nowadays. But if you can show actual work being done and revenue made, then it should be ok. It certainly helps if the company is 100% Thai owned and you are not married or related to the owner(s). Do be advised that payroll and accounting fees will set you back around 200,000 Baht per annum. For visa purposes only, the Thai elite visa is a lot cheaper than going the company/WP route.

200k for payroll and accounting? That is very expensive. The company I work for in Bangkok (a company that is active and trades) pays 5k a month for accounting. This includes calculating the VAT, and paying the VAT, income tax and social fund. The auditing at the end of the year is 7k.

One of our staff does the payroll, which is the same figure every month as staff are on a fixed salary.

[Gulfsailor]

"The company would need 2 million baht of registered capital, and if you want a work permit the business would have to employ at least 4 Thai's, pay their social security payments" .

So a company is set up and owned by my misses and 4 inlaws are on the books who hang around all day annoying anyway scabbing money, this would just make it formal !!! What is this 2 mill baht requirement? I was told "in the bar" no one cares about it....... I don't subscribe to that point of view. Can anyone please explain it please ?

If your local labor dept is not too engaged in actual checking it should be doable to get a WP this way. Extension at immigration for reason of employment might be a bit trickier nowadays. But if you can show actual work being done and revenue made, then it should be ok. It certainly helps if the company is 100% Thai owned and you are not married or related to the owner(s). Do be advised that payroll and accounting fees will set you back around 200,000 Baht per annum. For visa purposes only, the Thai elite visa is a lot cheaper than going the company/WP route.

200k for payroll and accounting? That is very expensive. The company I work for in Bangkok (a company that is active and trades) pays 5k a month for accounting. This includes calculating the VAT, and paying the VAT, income tax and social fund. The auditing at the end of the year is 7k.

One of our staff does the payroll, which is the same figure every month as staff are on a fixed salary.

The SME I work for;

Accounting 4,500

Income tax 3,500 (mostly on just my salary)

Social security 5,100 (5 staff)

Total not including VAT, corporate tax or withholding taxes; 157,000 per annum

Year end audit 15,000

WP 3100

Extension + multiple reentry 5700

Misc DBD and others; circa 3000

Totals in our case a minimum of THB 184,000 per year in payroll and accounting fees in order get WP and annual extension. This can be a lot more if you have a lawyer or accountant taking care of your WP and extension. Like I said, Elite Visa is a lot cheaper, so for the sole purpose of being able to stay in Thailand, setting up a company is not a financially wise move.

[digitalchromakey]

Could I set up a company and pay my wife and maid? I pay them both already, might as well get a WP?

Why would you want to?

Perhaps to facilitate obtaining a visa.

If the OP is married he would be best advised to stay with the visa/extension options marriage to a Thai provides.

The only "visa" which forming a company would facilitate is the possibility of a "B" visa which has stringent requirements.

If the OP is legally married to a Thai then a Work Permit would allow a 327/2557 Case 2.18 extension based on Thai Family but rather than having 400,000 THB in the bank, instead showing Thai income of 40,000 THB pcm with the WP, tax returns on the 40k pcm over the year, plus a few other company papers.

[ardokano]

Ok. Many people don't understand what the registered capital is (for). A company limited is a company that is its own judicial entity. It can go into debt and the shareholders and or directors are not responsible for it (gross negligence or fraud excepted). So when the debt burden becomes too large a bankruptcy is requested and all debt (and the company) is gone. In order to protect other businesses and customers from a limited company debt default the owners are liable for at least a fixed portion, this is the registered capital amount. In an ideal world this will be paid up front (eg personal money put into the company upon starting). In a less ideal world the curator will have to go after the owners for the registered capital part when not paid up front. But in any case the owner is only liable for that part.

That's why it is so important to check the registered capital of a company when engaging in a large transaction with it. I sometimes see large condo developers offering all kind of guarantees via contracts using a separate entity whose registered capital is a mere 500,000 Baht, meaning that's how much 'own' money the owners have at risk. One lawsuit against them, and they'll just walk away from the 500,000 baht company, keeping all the profits in a separate entity.

Register capital company its NOTHING!!!

so even it be 100000000 can be moved. And company with register capital 500 k can have assets few million( important capitalization of the company, capital company, not register capital its different thinks). So risk only what assets the company owns in during time the recovery of debt claims.

Maybe you have in mind the responsibility of the owner (co-owner) of the company, provided if the laws of registering a company with a register capital unpaid.

[DonaldBattles]

Unless you have a sure way to make money that requires a work permit then you are wise to leave it alone. The Thai system is setup to cost you a ton of money to maintain a company and a work permit. THAILAND IS NO PLACE FOR A FARANG TO OPEN A SMALL BUSINESS AND TRY TO MAKE MONEY. The system here is set up for you to spend your money fast and to support some Thai woman and her kids from a previous husband and her mother and father. If the shoe does not fit don't wear it.

[Maestro]

200k for payroll and accounting? That is very expensive…

If we are talking about four Thai employees at the minimum salary of 300 Baht per day, plus your own salary to qualify you for the employment extension, depending on your nationality, how much will the annual payroll be?

[ardokano]

Unless you have a sure way to make money that requires a work permit then you are wise to leave it alone. The Thai system is setup to cost you a ton of money to maintain a company and a work permit. THAILAND IS NO PLACE FOR A FARANG TO OPEN A SMALL BUSINESS AND TRY TO MAKE MONEY. The system here is set up for you to spend your money fast and to support some Thai woman and her kids from a previous husband and her mother and father. If the shoe does not fit don't wear it.

Despite what and how small business.

Thailand is still cheap labor (even foreigners) are not expensive rent. there are many services are not represented in Thailand, or high-income.

Its for BIG BUSINESS its be more harder.

[natway09]

For the 5th time he wants a WP not just a visa

[blackcab]

"The company would need 2 million baht of registered capital, and if you want a work permit the business would have to employ at least 4 Thai's, pay their social security payments" .

So a company is set up and owned by my misses and 4 inlaws are on the books who hang around all day annoying anyway scabbing money, this would just make it formal !!! What is this 2 mill baht requirement? I was told "in the bar" no one cares about it....... I don't subscribe to that point of view. Can anyone please explain it please ?

If your local labor dept is not too engaged in actual checking it should be doable to get a WP this way. Extension at immigration for reason of employment might be a bit trickier nowadays. But if you can show actual work being done and revenue made, then it should be ok. It certainly helps if the company is 100% Thai owned and you are not married or related to the owner(s). Do be advised that payroll and accounting fees will set you back around 200,000 Baht per annum. For visa purposes only, the Thai elite visa is a lot cheaper than going the company/WP route.

200k for payroll and accounting? That is very expensive. The company I work for in Bangkok (a company that is active and trades) pays 5k a month for accounting. This includes calculating the VAT, and paying the VAT, income tax and social fund. The auditing at the end of the year is 7k.

One of our staff does the payroll, which is the same figure every month as staff are on a fixed salary.

The SME I work for;

Accounting 4,500

Income tax 3,500 (mostly on just my salary)

Social security 5,100 (5 staff)

Total not including VAT, corporate tax or withholding taxes; 157,000 per annum

Year end audit 15,000

WP 3100

Extension + multiple reentry 5700

Misc DBD and others; circa 3000

Totals in our case a minimum of THB 184,000 per year in payroll and accounting fees in order get WP and annual extension. This can be a lot more if you have a lawyer or accountant taking care of your WP and extension. Like I said, Elite Visa is a lot cheaper, so for the sole purpose of being able to stay in Thailand, setting up a company is not a financially wise move.

Apologies - I mistakenly thought you meant 200k for accounting fees alone.

[blackcab]

200k for payroll and accounting? That is very expensive

If we are talking about four Thai employees at the minimum salary of 300 Baht per day, plus your own salary to qualify you for the employment extension, depending on your nationality, how much will the annual payroll be?

Agreed. I misunderstood the post.

[timendres]

"The company would need 2 million baht of registered capital, and if you want a work permit the business would have to employ at least 4 Thai's, pay their social security payments" .

So a company is set up and owned by my misses and 4 inlaws are on the books who hang around all day annoying anyway scabbing money, this would just make it formal !!! What is this 2 mill baht requirement? I was told "in the bar" no one cares about it....... I don't subscribe to that point of view. Can anyone please explain it please ?

If your local labor dept is not too engaged in actual checking it should be doable to get a WP this way. Extension at immigration for reason of employment might be a bit trickier nowadays. But if you can show actual work being done and revenue made, then it should be ok. It certainly helps if the company is 100% Thai owned and you are not married or related to the owner(s). Do be advised that payroll and accounting fees will set you back around 200,000 Baht per annum. For visa purposes only, the Thai elite visa is a lot cheaper than going the company/WP route.

200k for payroll and accounting? That is very expensive. The company I work for in Bangkok (a company that is active and trades) pays 5k a month for accounting. This includes calculating the VAT, and paying the VAT, income tax and social fund. The auditing at the end of the year is 7k.

One of our staff does the payroll, which is the same figure every month as staff are on a fixed salary.

We pay 5,000 baht each month for payroll, VAT, etc. The year end is 20,000 baht.

[Ron CM]

I have to admit, each time i read these sorts of 'stories' i walk away confused, what proof do any of you have that backs what you write??? 2 mil in bank account? married to a Thai person 1 mil? or even the claim that the government send out people to spy on you.....etc etc etc....

Based on my own personal experience -

Set up company need a Thai to hold 51% no talk of 4 Thai's------- also payed up capitol of 2 mil.... that can be used any way you see fit to spend it legally. As long as the business still holds some money in the bank and is not bankrupt. (Owner si responsible for all debts)

But the payed up capital for new business now is 3 mil, as pointed out by my Lawyer/ accountant. (Looking at starting up another business)

now this claim of people being investigated, personally i have not met anyone yet that has had this done, and i know a lot of people in business..... but this doesn't mean it hasn't happened, i would love to hear of personal experience on this count.

Please someone restore my faith in this forum.

and to follow on with this tradition of piffy sayings:

Everyone is entitled to my opinion

[blackcab]

I have to admit, each time i read these sorts of 'stories' i walk away confused, what proof do any of you have that backs what you write??? 2 mil in bank account? married to a Thai person 1 mil? or even the claim that the government send out people to spy on you.....etc etc etc....

Based on my own personal experience -

Set up company need a Thai to hold 51% no talk of 4 Thai's------- also payed up capitol of 2 mil.... that can be used any way you see fit to spend it legally. As long as the business still holds some money in the bank and is not bankrupt. (Owner si responsible for all debts)

But the payed up capital for new business now is 3 mil, as pointed out by my Lawyer/ accountant. (Looking at starting up another business)

now this claim of people being investigated, personally i have not met anyone yet that has had this done, and i know a lot of people in business..... but this doesn't mean it hasn't happened, i would love to hear of personal experience on this count.

Please someone restore my faith in this forum.

and to follow on with this tradition of piffy sayings:

Everyone is entitled to my opinion

2 million baht paid up capital is not required to start a limited company. That figure is required to obtain a work permit and therefore an extention of stay.

You can start a limited company with just 3 shares of 5 baht each if you choose to. Very few people do this, however, because the government registration fee is the same for a 15 baht company or a 1 million baht company.