Banking And Corporate Question

[Sing_Sling]

I have been asked to have the right of signature (authority to operate) for a friend's company bank account . . . just in case it becomes necessary, and he doesn't trust his staff to that extent.

My question is; do I have to be an officer of the company to have the right of signature (authority to operate) and will having a non-Thai do so change the tax structure, i.e. increase the tax percentage for being 'foreign owned'. The company is 100% Thai owned.

Thanks for your help.

[kudroz]

Being an "authorized signatory" on a corporate bank account doesn't mean you need to be a shareholder or director of that company. It simply means that you are authorized to give instructions to the bank on the company's behalf.

Although, by exerting this power - you will be in-fact performing "work" and this requires, I believe, a work permit.

[Cyberstar]

I can't say that I am perfectly sure of much, but I think the bank will want minutes from a shareholder meeting (and maybe some signatures from the directors) stating that your signature (alone) suffices for "operating" the company account.

As for tax: as long as foreign ownership remains below 49% (50%?) it is 100% a Thai company and is taxed as such.

[Sing_Sling]

I can't say that I am perfectly sure of much, but I think the bank will want minutes from a shareholder meeting (and maybe some signatures from the directors) stating that your signature (alone) suffices for "operating" the company account.

As for tax: as long as foreign ownership remains below 49% (50%?) it is 100% a Thai company and is taxed as such.

Bingo! That's what I was looking for - quite smple, really. A signator does not have to be a shareholder, he can be an employee, of course, and that doesn't alter the ownership or taxation standard.

Although, by exerting this power - you will be in-fact performing "work" and this requires, I believe, a work permit.

As I am a resident of Singapore and could charge him a nominal 'consultancy' fee the work permit issue would also not be relevant.

This could work out quite well.

Thank you, Cyberstar and Kudroz.