Manafacturer's Registration If Emplying More Than 8 Ppl

[Smithson]

We make our own product for export, currently employing 6 ppl. We're busy and would like to expand and employ more, but have been told that employing more than 8 ppl requires us to change our business registration, to something like a 'manafacturer' (I don't know the correct term in English, because everything's been explained to me in Thai.

Apparently this is very expensive in terms of tax and accounting, we're told that many businesses just employ more ppl and pay them cash, often using 2 premises close by for production.

For us this isn't an option, we want to do everything 100% legit.

Does anyone have any info about thisb 'manafacturer's registration'?

[Smithson]

Does anybody have any ideas on this?

[Smithson]

Any ideas at all? I think this forum is more for financial matters.

[Chang_paarp]

Congratulations on being in this position Lots of folks would like to be there, it is a bit like having a tax problem. You have to be making money to have a tax problem.

If the extra tax/costs is such a problem, open a second business doing exactly the same thing to take the overload under contract. This will increase the paperwork but not the cost per head.

It would not be a uniquely Thai situation if increasing the workforce increased the costs. In Au, if you employ more than x people or if your payroll is over $Y you have to pay payroll tax.

Greg from Sunbelt will usually help with this sort of thing, he is usually pretty busy so it may take a day or so to see you message.

[Wekhin]

It has nothing to do with tax matters. It is to comply with manufacturing-related laws. Not all manufacturing types have to register and obtain permission or license to operate. However, lists of those who have to obtain are quite long. You have to check your manufacturing type with Dept. of Industrial Works, Ministry of Industry. BTW, it is seven people, not eight, with or without machine if it is a manufacturing type stated in the required list.