Deadline for depositing 100% of a company share capital

[CafeBakery]

Hi, I am interested in opening a café restaurant with my Thai girlfriend in Chiangmai. In order to get a work permit, I understand that I need to set up a company with 2 millions THB share capital and deposit at least 50% of the capital at the start, then hire 4 Thai employees (including my girlfriend), get a Non-immigrant visa B and then at last apply for a work permit.

Does anyone know how long do I have before depositing the remaining 50% of the capital? I don’t want to convert euros into 2 millions THB just now (the EUR is weak at present and according to my business plan, 1m THB should be sufficient to cover the initial investments and cash outflows).

[elviajero]

You need to appoint an accountant and they will advise how much and when.

[digitalchromakey]

You just have to buy notional 'Registered Capital' - it costs a few % of the 2 Million - this then needs to be accounted for over the years with a gradual substitution by real Capital in your business.

 

Normally Accounts here allow for the 2 million to be shown as a loan(s) to the Directors.

 

You don't use real money, it's not necessary.

 

As already advised - get a decent accountant and they will sort this out for you.

[Jinda Group]

Hi,

 

I am accountant in Bangkok. Even though I could set up the company for you, I recommend to get a local company, as there are many documents that need to be signed.

 

Regarding your question:

If you want to keep it cheap, just open a partnership limited company with 2 Thai shareholders (100% Thai ownership). On this way you only need to pay the service fee + 4250 THB Government fee for 2 Million THB registered capital. No capital needs to be deposited. About 2 weeks after incorporation you can exchange shareholders and add you with up to 49%. This will cost an extra service fee, however, no capital needs to be shown.

 

Any further questions, please let me know.

 

Kind regards

JINDA Group

[Maestro]

At least 25% of the registered capital must be paid up at the time of registering a Private Limited Company.

 

As has been suggested, you should get an accountant to help with the registration of the company. For background information, you can find a lot on http://www.boi.go.th, in English for yourself and in Thai for your friend.

[Jinda Group]

Dear Maestro,

 

sorry to contradict you, but I am 100% sure that DBD does not require to see paid up capital if ownership structure is 100% Thai or 100% foreign at the time of registration. The paid up capital is required in companies (private company limted as well as partnership limted) with mixed ownership (Thai & farang) structure and protects Thai shareholders, so they are not misused as nominee shareholders.

 

You are right that many sources in the internet talk about the requirement of 25% minimum paid up capital. The reality is different though...at least at the moment!

 

Should you have any questions, please let me know!

 

Regards

JINDA Group

 

[kurtmartens]

On 2/7/2017 at 10:44 AM, Jinda Group said:

On 2/7/2017 at 4:38 AM, Maestro said:

At least 25% of the registered capital must be paid up at the time of registering a Private Limited Company.

 

As has been suggested, you should get an accountant to help with the registration of the company. For background information, you can find a lot on http://www.boi.go.th, in English for yourself and in Thai for your friend.

Not in reality.  We setup ours with no actual capital moving, just accounting entries.

 

[kurtmartens]

On 2/5/2017 at 7:29 PM, Jinda Group said:

Hi,

 

I am accountant in Bangkok. Even though I could set up the company for you, I recommend to get a local company, as there are many documents that need to be signed.

 

Regarding your question:

If you want to keep it cheap, just open a partnership limited company with 2 Thai shareholders (100% Thai ownership). On this way you only need to pay the service fee + 4250 THB Government fee for 2 Million THB registered capital. No capital needs to be deposited. About 2 weeks after incorporation you can exchange shareholders and add you with up to 49%. This will cost an extra service fee, however, no capital needs to be shown.

 

Any further questions, please let me know.

 

Kind regards

JINDA Group

This is how my wife and I did ours as well.  With all Thai shareholders at first, then 1 month later restructured the shares so I had 49%.