US business in Thailand

[mamainthailand]

Hi all,

My husband and I (both US citizens) are looking into opening a Japanese jujitsu gym here in Thailand.  I have heard of the Treaty of Amity for American Citizens that allows US citizens to open a company without any Thai shareholders.  I am wondering if someone could refer someone who could help us figure out how this all works.  If we did pursue this, we would require a visa for our family.  I am not sure if we would make this a non-profit business or a for-profit business yet as we are not sure how this all works out here in Thailand.  Thanks in advance for any help or advice.

[blackcab]

Do you have enough money to live in Thailand, support your family and pay for your children's (if you have any) education for two or three years?

 

I am being realistic here, because your business won't generate enough profit during that time.

 

The Treaty of Amity company isn't especially difficult to set up. That, however, is just the start. In Thailand foreigners need a work permit. To get a work permit you need to hire 4 Thai people. So one work permit = 4 Thai employees, two work permits = 8 Thai employees.

 

If you have children please research the cost of education. Good schools in Bangkok are 10,000 - 20,000 USD per year, per student. There are considerably cheaper options, but you need to really think about this.

 

Also consider the cost of extensive health care insurance. Having a serious accident or illness in Thailand can be very expensive, and often there is no way to claim from the a 3rd party who is at fault. 

 

If you have considerable savings or continuing investment income that you want to spend to live life the way you choose, then go ahead.

 

If you think that you will be able to come to Thailand, open a school on the cheap and wing it, then think again. You might succeed, and I hope you do. You will have a much better chance, however, if you start creating a comprehensive budget so that you can get a true idea of the costs involved.

 

There is a lot of help here. Post your proposed budget and any questions. Other forum members will be able to give you realistic costs that you will be able to use to refine your plans.

 

Try to ignore unhelpful comments that you will lose everything, that the sky will come crashing down and that the world will end. You are at the stage of gathering information, so there is nothing to lose by doing careful research.

 

Over to you. Ask away...

[mamainthailand]

Thank you @blackcab for your response.  We are already living in Thailand and have a steady income from the US as well as able to provide for our kids education here and have international medical insurance as well.  I have a work permit that my family comes under now but if we pursued this, I would like to leave my position and get a work permit through this business.  We are mostly concerned with the business aspect of it all and how it works.  We have no idea where to start with how to pursue opening a business here under that treaty.  Are you able to set up the business as an American and then once you have a business license, then you would be able to then find a location and hire employees?  And once that is accomplished, then you could get work permits if meeting the Thai employee ratio?  This is all totally new to me and I have no idea where to start.  

[blackcab]

Do you speak/read Thai? If you don't then you are either going to need to get an educated Thai speaker to handle this, or use a professional services company.

 

Q:  Are you able to set up the business as an American and then once you have a business license, then you would be able to then find a location and hire employees?

 

A: Yes, although you need to give an address to register the company in the first place. Some people use shared working spaces provided by companies such as Regus to get their first business address, then change the registered address later on when they secure premises. Others use their home address.

 

Q: And once that is accomplished, then you could get work permits if meeting the Thai employee ratio? 

 

A: Yes. Be aware that when you leave your current job your permission to stay will expire at the same time. If your family have Non-O extensions then you need to ask a question in the visa forum about whether or not their extensions remain valid.

 

When I have changed jobs I have had to leave the country and get a new Non-B visa, come back and start the whole work permit/extension of stay process over again. 

[mamainthailand]

Thank you so much for your help.  Is there a processional services company you would recommend?  I do speak and read some so I would definitely need help with translation.  I will look into Regus for help with a business address.  Is there an agency you can go through that can help process the visa paperwork for you?

[blackcab]

To be honest I would hunt around to get the lowest price with someone you are comfortable with. Every service company will do the same thing:

 

1. Open a Treaty if Amity company

2. Sort out your work permit

3. Obtain 1 year extensions and reduce entry permits.

 

Be certain you want to go this route. It will be a roller coaster ride, I can assure you. In hindsight, you might prefer the job you have now. 

[how241]

Good luck.  Try to keep your investment as only a small portion of your total wealth, just in case things don't work out.

[how241]

Good luck.  Try to keep your investment as only a small portion of your total wealth, just in case things don't work out.

[mamainthailand]

Thank you @blackcab for your help :)