US business to operate in Thailand

[CMSteve]

I'm considering creating a US business entity to buy into a Thai partnership. I was hoping to get some help from those of you with some previous experience in this.

Such things as:

type of us business (Sole proprietor, LLC?)

Tax issues: SSI, Medicare in the US, exemptions afforded up to ~90,000 applicable for Thai based business?

Amnity agreement: necessary? do on my own, hire a lawyer?

anything that gets me pointed in the right direction is greatly appreciated.

Thanks!

[Mhee Kway Ee]

Depends on what kind of business you intend to do, but if you're a US business doing purchasing / sales / distribution in Thailand there are ways you need nothing other than your US incorporation and taxes.

[sanukjim]

I would not do it here.Look for other places in Asia .If you are successful here and (don't forget you have only 49%) are doing well then you might find an offer to be bought out (for a lot less then the business is worth) or find yourself n a persona non grata (check Thaksin's former partner) or simple killed .Many stories here of jealous old BFs or husbands wanting to jump into the action with you.Or they will build a similar business next door and sabotage yours..Not worth it for a medium to large business here.

[ozyjon]

I was telling my friend here in Europe of a sign i once

saw on a door of a Bangkok Hotel,, it said ''No Indians

Allowed'' she looked up in horror, they can't do that, it's

discrimination, she said, remember you are in Thailand.

[timendres]

I would not do it here.Look for other places in Asia .If you are successful here and (don't forget you have only 49%) are doing well then you might find an offer to be bought out (for a lot less then the business is worth) or find yourself n a persona non grata (check Thaksin's former partner) or simple killed .Many stories here of jealous old BFs or husbands wanting to jump into the action with you.Or they will build a similar business next door and sabotage yours..Not worth it for a medium to large business here.

Thailand definitely raises the bar, so one much account for this in any business venture here. But it is doable.

The Amity treaty allows for 100% ownership, but I am not sure if it applies for businesses. For sure individuals.

I agree that I would not own a company here if I could not own 100% of the shares.

[theDukes]

It depends how much of the business you are going to buy. If less than 50% and there are no other foreign partners all you need is your passport. Foreigners can own up to 49% of the shares of a Thai business. You don't need an entity nor a company. To work you need a passport and a work permit. The business needs at least 2 million Baht in capital to get you  a work permit and 4 Thai workers. Your salary is listed as 50,000 even if you don't make that and you pay tax and social insurance on the 50,000. If you "don't work" you can receive distributions from the company with a 10% withholding tax. You are not required to file a Thai tax return if you just get a distribution but you are if you have a work permit and make a salary. 

 

Seems like there must be plenty of this type of information online. If not just find an accountant that speaks English and they can fill you in on what you can do.

 

By the way there are 100s of horror stories going around about everything from buying into a Thai business to putting a business you bought into your girlfriend's/boyfriend's name. You should spend a few hours and give them a read so you can see what others have done and the mistakes that have happened. There are other happy ending stories that you don't hear about as much but they are out there. Take the advice you are going to get here and be careful with your money.

 

I'm not sure if the Treaty of Amity is still around but if it is you, as an American, can own 100% of a Thai company, either as an individual, a sole proprietor or as a US company. I own an Amity Treaty company and it operates the same as a Thai company, pays the same taxes and has the same rules and requirements. I've owned it for 10 years. 

 

D

[blackcab]

14 hours ago, theDukes said:

It depends how much of the business you are going to buy. If less than 50% and there are no other foreign partners all you need is your passport. Foreigners can own up to 49% of the shares of a Thai business. You don't need an entity nor a company. To work you need a passport and a work permit. The business needs at least 2 million Baht in capital to get you  a work permit and 4 Thai workers. Your salary is listed as 50,000 even if you don't make that and you pay tax and social insurance on the 50,000. If you "don't work" you can receive distributions from the company with a 10% withholding tax. You are not required to file a Thai tax return if you just get a distribution but you are if you have a work permit and make a salary. 

 

Seems like there must be plenty of this type of information online. If not just find an accountant that speaks English and they can fill you in on what you can do.

 

By the way there are 100s of horror stories going around about everything from buying into a Thai business to putting a business you bought into your girlfriend's/boyfriend's name. You should spend a few hours and give them a read so you can see what others have done and the mistakes that have happened. There are other happy ending stories that you don't hear about as much but they are out there. Take the advice you are going to get here and be careful with your money.

 

I'm not sure if the Treaty of Amity is still around but if it is you, as an American, can own 100% of a Thai company, either as an individual, a sole proprietor or as a US company. I own an Amity Treaty company and it operates the same as a Thai company, pays the same taxes and has the same rules and requirements. I've owned it for 10 years. 

 

D

 

Excellent advice.