Yearly costs for foreign business

[Mangostin]

Hi,

could someone please give me a general idea of the cost involved into opening a new business and keep it open for a year?

By this i mean, not how much a building would cost to buy or rent, but taxations and unavoidable compulsory payment, as the accountant which it's probably around 10.000 every 6 months, and work permit costs.

This will need to include a work permit for 1 foreigner (are 4 thai worker still required to be on the payroll for each alien???).

That's for a new company presumably making between 10k and 30k a month in the beginning.

Thanks.

[tonray]

You will likely be running a large deficit if revenue is only 10 to 30K per month. That would not even cover salaries and SS payments for Thai staff.

[Mangostin]

Thanks Tonray, so does that means that the rule "4 thais for every foreigner" it's still in place?

Also, i know that there is a local trend for nazi stuff, but to pay for schutzstaffel it's not a bit too extreme even for this place???

[tonray]

Thanks Tonray, so does that means that the rule "4 thais for every foreigner" it's still in place?

Also, i know that there is a local trend for nazi stuff, but to pay for schutzstaffel it's not a bit too extreme even for this place???

I don't think anything has changed....I believe you also need to have 2 million baht in capital in the bank

[scorecard]

Thanks Tonray, so does that means that the rule "4 thais for every foreigner" it's still in place?

Also, i know that there is a local trend for nazi stuff, but to pay for schutzstaffel it's not a bit too extreme even for this place???

Why are you mentioning schutzstaffel?

[Mangostin]

Why are you mentioning schutzstaffel?

Because he wrote " SS payments", i wasn't sure of what he meant, so i used Goggle to check and that's what it came out with, then i connected this to many other things i noticed while travelling around and that was the reason for the remark.

[SOUTHERNSTAR]

Lets break it down.

Social security payments for you and 4 Thai employees(SS)+ Taxes +- B15 000/m

Salaries for Thai employees - 4 x B 9 000/m = B 36 000/m minimum

Your salary - B 50 000/m

Rent - how long is a string ?

Accountant +- B 3 000/m if you go full out minimum +- B 12 000 for your annual financials.

Registering the company ? depends if you do it yourself or use someone.

After 3 years you must start to show profit which will be taxed ?

[Mangostin]

Thanks Southernstar, that surely can give a good idea of the costs involved.

I am wondering how some of the foreign business i saw around, can possibly manage to stay open, some of them didn't even had thai staff in sight, mmmm maybe it's better to just skip the whole topic and think about something totally different....how sad.

[cosmosis]

Approximate running costs:

Social Security and taxes for 4 Thai and self + acct fees = 7662 pm

Minimum wages 4 Thais = 36,000 pm

Annual Company Accounts = 15,000 pa

Work Permit renewal = 4,500pa

Company net profit tax between 10% to 30%

1yr Visa Extension = 13,500pa

Set up cost of company = 30,000

VAT (currently 7%) for goods and services on company with turnover in excess of 1.8millionpa

(Withholding tax on money earned inside Thailand 5- 10%)

Import taxes on importation of anything used in the business averaged at 20%, but ranges from 0% to 80%

[Mangostin]

Thanks guys i really appreciated all your valuable info.

I make up my mind on this and decided to just give Thailand a large and wide skip for any future business investment, i think Cambodia makes much more sense for any foreigners wanting to invest around here, which doesn't have the availability of very large funds...

SoVATdaCrap

[aronp1]

I think it really depends on what type of business. Is it a food cart on the side of the road,(No employees),is it a store front,an office space? Selling products or services?

[Gutenberg]

Hilarious post with misunderstandings.

[lkv]

OP, have a look at this thread.

http://www.thaivisa.com/forum/topic/900340-thai-company-for-a-freelancer-just-for-obtaining-wp/

There is a breakdown there for 260,000 baht recalculated by another member at 175,000 baht per year.

I think for all the right reasons your decision to avoid Thailand for business is a good one.

Edited March 15, 2016 by lkv

[kinmaew]

The only sane way is to make your cash in your home country, rent out your property in your home country and live off the rent and your investments, forget about doing business in Thailand you will just lose if starting out the poor Dane in Ubon runnnig the real estate biz he had for 15 years has had it with their arbitrary decision making process "Mood of the day type mentality" how could you possibly risk your cash on that?Enjoy the girls and food but dont break your chains from your home country at all costs.

[Caca4u]

I consulted a lawyer once the she told me would run around 100k a year, including expenses for ghost employees. I wanted to get it just because of thr work permit. Not worth it at the end. Elite visa and cheaper and much easier.

[khunPer]

Rent of building depend on location, both where in country and placement in town. Price for buying (in company name) also widely depend on location, and can easily be millions of baht. To my experience the minimum costs shall be:

42,000 Accountant fee and annual statement from auditor.

403,200 4 Thai employees, minimum salary with one day off a week and 5% social security, each 8,400/month

180,000 Rent of building or business location, 15,000/month

24,000 Electric, basic Internet, water etc.

600,000 Foreigners salary 50,000/month

I.e. 1,250,000 baht for a year plus 10% extra for unforeseen expenses.

There is no minimum salary for foreigners, but Immigration may not extend permit to stay without proof of a certain income, depending of position and country of origin; 50,000 baht a month is probably close to minimum – the foreigner also need some income to cover costs – Social Security for foreign workers is voluntary.

Number of needed Thai workers may depend of business and necessary qualifications; check with a lawyer.

Wish you good luck with your project...

Edited March 16, 2016 by khunPer

[aronp1]

Depends on type of business.

[innerspace]

Everyone has included staff salaries but I guess those wouldn't exist beyond paper.

5 x 1500 social.

2500 salary tax

3000 accounts

Total 13k per month.

Plus visa and WP.

30k per year.

Balance sheet 15k

And expect 20k to disguise the invisible staff.

220k or so without a real business or income, expensive visa.

With an office and real business profits will cover the costs anyway.