Thai Partnerships / Visa + Work Permit

[Oohwan]

Hello Forum,

 

Is it possible to get a work permit +  Non-Immigrant Visa "B" -- To Conduct Business in Thailand by setting up any of the following partnerships?

 

·         I am married to a Thai who can be wholly liable for the business. I don’t necessarily need to be a partner do I?

 

Thailand Sole Proprietorship

 

Thailand Partnerships

 

Unregistered Ordinary Partnerships

 

Registered Ordinary Partnerships

 

Limited partnerships

 

Thank You,

Oohwan

[ubonjoe]

If married to a Thai you can get a work permit and work with a non-o visa or extension of stay based upon marriage.

Any partnership would have to be registered with a capital of at least 1 million baht to get the work permit.

It is possible to get a work permit with a registered sole proprietorship.

[Oohwan]

Thank you Ubonjoe,

You mentioned "If married to a Thai you can get a work permit and work with a non-o visa or extension of stay based upon marriage."

The issue with this is I don't have anyone to sponsor my work permit if I did have a non-o visa.

I guess the real question I should be asking is what would be the easiest and least expensive partnership for husband and wife? I will require a work permit.

I recently spoke to an accountant and she said I should make a LP. She said I needed to have 3 Thai names, but I would only have to pay tax for 2 not including myself. Doing it like this she said I would need to fly out every 3 months. Non-b with work permit would be given.

I do not mind having to leave the country every 3 months.

The other option was to get 4 Thai names, pay tax on 4 Thai staff including myself, and this way I would not have to leave the country. Non-b with work permit would be given.

She also mentioned with the first option I would only have to pay for 3,600 for a yearly renewal, and with the second option I would have to pay 25,000. I can’t remember at this time what the renewal is for.

My wife’s business is selling CCTV, alarms, etc.

On my work permit my job description would be Security Consultant.

 

Oohwan

 

 

 

 

 

[ubonjoe]

You don't have to get a non-b visa. You can get a multiple entry non-o visa or a one year extension of stay based upon marriage. No need to for a stack of company paperwork to get the non-b or extension of stay based upon working,

You would not be able to get a one year extension based upon working for a LP. It has to be a registered company with shareholders. It also requires a minimum salary of 50k baht if you are from a western country.

Not sure what is meant by 3 Thai names. You and your wife can have a 51/49 partnership and get the work permit. The number of Thai employees needed depends upon where you apply for the work permit. At some it is 2 and at others it is 4.

[Oohwan]

Thank you ubonjoe,

 

The 3 Thai names I guess is for the registration of the company or partnership, I'm not too sure what she was trying to set me up with. This weekend I'll see her again and ask her for better clarification.

 

If I get a multiple entry non-o visa is it possible for me to get a work permit under me and my wife’s partnership or her own sole proprietorship?

 

"You and your wife can have a 51/49 partnership and get the work permit." What kind of partnership is this called?

 

Is a 51/49 partnership more cost effective and less hassle than a registered sole proprietorship?

 

My plan is also to allow other companies to add their name onto my work permit without actually having to provide me with a work permit. Having a work permit under my own partnership, or wife’s sole proprietorship will allow me to contract out my services.

 

What would you suggest?

 

 

[ubonjoe]

17 minutes ago, Oohwan said:

If I get a multiple entry non-o visa is it possible for me to get a work permit under me and my wife’s partnership or her own sole proprietorship?

"You and your wife can have a 51/49 partnership and get the work permit." What kind of partnership is this called?

Is a 51/49 partnership more cost effective and less hassle than a registered sole proprietorship?

My plan is also to allow other companies to add their name onto my work permit without actually having to provide me with a work permit. Having a work permit under my own partnership, or wife’s sole proprietorship will allow me to contract out my services.

What would you suggest?

You could get the work permit with a multiple entry non-o visa based upon marriage. With either a partnership or as sole proprietorship.

It would be a basic partnership and you can get a work permit. 

In order for you to add other jobs to your work permit they have to meet the same requirements as it takes to get work permit. You can add other place of work to your work permit or if you job description includes it you can work at other locations. The contract work would be done under your partnerships name.

You find info about partnerships and etc here in this business guide from the BOI. BusinessGuide 2014.pdf

[Oohwan]

Thanks ubonjoe,

 

So if I understand this correctly

 

First go and get my non-o visa. 'I've only been married for 1 month, and I don’t have the 400,000 or a salary at this time'

 

Then come back into Thailand, and apply for a basic partnership? Is it more cost effective 'set up and tax wise' to have my wife make the partnership or sole proprietorship herself without me as a partner?

 

Would she then still be able to sponsor me a work permit?

 

 

 

 

 

[ubonjoe]

1 hour ago, Oohwan said:

Thanks ubonjoe,

So if I understand this correctly

First go and get my non-o visa. 'I've only been married for 1 month, and I don’t have the 400,000 or a salary at this time'

Then come back into Thailand, and apply for a basic partnership? Is it more cost effective 'set up and tax wise' to have my wife make the partnership or sole proprietorship herself without me as a partner?

Would she then still be able to sponsor me a work permit?

You can get a multiple entry non-o visa based upon marriage in Savannakhet Laos with nof financial proof.

The type of partnership you do has no effect on your taxes. You pay taxes based upon the companies income.

Either way you would be able to get a work permit.

[Oohwan]

Thanks ubonjoe,

What if she makes the partnership with her sister, would this be more beneficial for the partnership 'monthy tax and set up wise' than if she were to make the partnership with me?

What if was her own sole proprietorship?

The only reason I'm inquiring about a partnership/sole proprietorship is so I can ontain a work permit where another company can add themselves onto my work permit. They will not sponsor directly.

Realistically the only income that will be comming in for me, and my wife regardless of how the partnership/sole proprietorship is set up, is the income from my contract work. The only one really working is me. My income would be approximately 70k per month.

Oohwan

Sent from my SM-N920C using Thaivisa Connect mobile app

[ubonjoe]

12 hours ago, Oohwan said:

What if she makes the partnership with her sister, would this be more beneficial for the partnership 'monthy tax and set up wise' than if she were to make the partnership with me?

 

12 hours ago, ubonjoe said:

The type of partnership you do has no effect on your taxes. You pay taxes based upon the companies income.

Either way you would be able to get a work permit.

 

12 hours ago, Oohwan said:

The only reason I'm inquiring about a partnership/sole proprietorship is so I can ontain a work permit where another company can add themselves onto my work permit. They will not sponsor directly.

 

14 hours ago, ubonjoe said:

In order for you to add other jobs to your work permit they have to meet the same requirements as it takes to get work permit. You can add other place of work to your work permit or if you job description includes it you can work at other locations. The contract work would be done under your partnerships name.

I quoted my previous posts to answer your questions.

 

12 hours ago, Oohwan said:

Realistically the only income that will be comming in for me, and my wife regardless of how the partnership/sole proprietorship is set up, is the income from my contract work. The only one really working is me. My income would be approximately 70k per month.

The income needs to go to the partnership or the business. Then you would be paid a salary. If the salary was 40k baht or more you could use the income to apply for an one year extension based upon marriage.

[Oohwan]

Thanks ubonjoe,

Is there a yearly minimum income requirement for a partnership/sole proritership?

Sent from my SM-N920C using Thaivisa Connect mobile app

[ubonjoe]

11 hours ago, Oohwan said:

Is there a yearly minimum income requirement for a partnership/sole proritership?

No

Only if you applied for an extension of stay based upon working for company at immigration is there a minimum salary requirement. Or if you want to apply for an extension of stay based upon marriage and use your income to prove the 40k baht income requirement to apply for it.

[Oohwan]

Morning unonjoe,

Yes I would want to apply for an extension of stay based on marriage, and use my 40K salary to apply for it. What would the partnership/sole proritership have to claim as a minimum yearly income?

Sent from my SM-N920C using Thaivisa Connect mobile app

[ubonjoe]

1 minute ago, Oohwan said:

What would the partnership/sole proritership have to claim as a minimum yearly income?

There would be no minimum profit for them. Just enough to pay your salary and overhead.

[Oohwan]

So if my wife, or my wife and I set up the partnership, and I show 40K salary coming in from contract work, would this be enough for immigration, and the revenue dept to not cause any issues?

Wouldn't the partnership/sole proprietorship still need to show the monthly tax payment on 2-4 Thai staff?

Sent from my SM-N920C using Thaivisa Connect mobile app

[ubonjoe]

2 minutes ago, Oohwan said:

Wouldn't the partnership/sole proprietorship still need to show the monthly tax payment on 2-4 Thai staff?

All that is the overhead I wrote about.

In order to get the work permit requires proof the employees are getting paid. Only social security payments are mandatory. Income tax does not have to be deducted and paid unless their income is greater than 150k baht a year plus deductions which could make it over 200k baht of income before taxes were deducted from their income.

When you apply for your extension based upon marriage you will not be asked to prove that.  Only tax paid for your income to prove it.

[Oohwan]

Would you be able to tell me how much the monthy social security payments would be for 2-4 Thai staff including myself, and what would be the income tax on my salary of 40k?

Should my social security and monthly income tax be paid by the company who is contracting me, or should it be paid by the partnership/sole proprietorship?

Sent from my SM-N920C using Thaivisa Connect mobile app

[ubonjoe]

41 minutes ago, Oohwan said:

Would you be able to tell me how much the monthy social security payments would be for 2-4 Thai staff including myself, and what would be the income tax on my salary of 40k?

Should my social security and monthly income tax be paid by the company who is contracting me, or should it be paid by the partnership/sole proprietorship?

Sent from my SM-N920C using Thaivisa Connect mobile app
 

Social security tax has a minimum of 750 baht per month requirement.

You can calculate your monthly tax deduction by using the info on this page of the revenue department website. http://www.rd.go.th/publish/6045.0.html

Since the partnership or proprietorship would be paying your salary so they would be the ones that would have to pay your social security and income taxes. They will be invoicing their customers for your work.

[Oohwan]

With 4 Thai salaries at 10k per month, and mine at 40k this means the partnership will need to pay 80k in salaries per month +ss + income tax on my 40k.

'The only provable money coming into the partnership will be based on 1 monthly invoice.'

Is it ok if one monthly invoice covers the entire operating costs of the partnership?

Let's say the invoice issued by the partnership to company X is for 100k per month.






Sent from my SM-N920C using Thaivisa Connect mobile app

[ubonjoe]

6 minutes ago, Oohwan said:

Is it ok if one monthly invoice covers the entire operating costs of the partnership?

I see no reason it could not.

[Oohwan]

Thanks ubonjoe,

Knowing the information you know now, would you recommend my wife set up a sole proprietorship or a ordinary partnership?

I will go get the non-o based on marriage as you suggested.

All we are trying to do is save as much money as possible setting up whatever we need to set up, and the outgoing monthly/yearly costs associated with the final solution.

Sent from my SM-N920C using Thaivisa Connect mobile app

[ubonjoe]

6 minutes ago, Oohwan said:

Knowing the information you know now, would you recommend my wife set up a sole proprietorship or a ordinary partnership?

A partnership would be the best option IMO.

[Oohwan]

Thanks ubonjoe,

Would that be an unregistered ordinary partnership, a registered ordinary partnership, or a limited partnership. Is it possible you give me the Thai spelling of the partnership you recommend?





Sent from my SM-N920C using Thaivisa Connect mobile app

[ubonjoe]

It would need to be registered partnership in order to meet the 1 million baht registered capital requirement to get a work permit. It could be a ordinary or limited partnership. That is your choice.

From pages 12 and 13 or the business guide I posted a link to download it to earlier.

Quote

3.1.1 Ordinary Partnerships
In an ordinary partnership, all the partners are jointly and wholly liable for all obligations of the
partnership. An ordinary partnership may or may not register as a juristic person. Therefore, an ordinary
partnership can be divided into 2 types:
(1) Non-registered Ordinary Partnership – has no status as a juristic person and is treated, for
tax purposes, as an individual.
(2) Registered Ordinary Partnership – is registered with the Commercial Registrar as a juristic
person and is taxed as a corporate entity.
3.1.2 Limited Partnerships
The limited partnerships must have 2 kinds of partners as follows:
(1) One or more partners whose individual liability is limited to the amount of capital
contributed to the partnership, and
(2) One or more partners who are jointly and unlimitedly liable for all the obligations of the
partnership.
The limited partnerships must be registered and are taxed as a corporate entity.
3.1.3 Partnership Registration
When two or more people agree to invest in one of the aforementioned types of partnership, the
appointed managing partner is responsible for registering the partnership with the commercial
registration office of the province that the head office of the partnership is located in. The limited
partnerships must be only managed by a partner with unlimited liability. The fee for registering a
partnership is 100 baht per 100,000 baht of registered capital. A fraction of 100,000 baht is regarded as
100,000 baht. The minimum fee is 1,000 baht and the maximum fee is 5,000 baht.