Company Formation Query And Work Permit Query

[kkearney]

Hi, I have a few questions regarding setting up a company in Bangkok and work permits etc,

1.If the company I form goes to a trade sale, is the Thai sharewholder(s) still entitled to 51% of the proceeds? 2. What are the criteria for the Foreigner shareholders. Do they need to possess valid B1 visas and worrk permits or can they be 'resident' here on tourist visas. 3. Does the 25% capitalisation cash have to be maintained in the bank account on a yearly basis. If the company shows to be trading with good intentions and maintains good accounting practises, will this cash need to be maintained permanently. 4. Are the fines for not meeting the 25% capitalisation, monthly or yearly. 5. I have a B1 business visa (expires June 2007), so I expect a work permit should be ok for me. I am also interested in brining a partner on board. He does not have a B1 visa. If I form the company can it sponsor a B1 visa for him and get him a work permit. 6. I will be able to bring in about 1.5 million Baht capital to the company in cash, which I will use to finance the company's formation and running for the initial year. How can I make up the rest of the capitalisation. 7. Will I have to employ 4 thais for every work permit?

Kind regards,

Kieran.

[Sunbelt Asia]

1.If the company I form goes to a trade sale, is the Thai sharewholder(s) still entitled to 51% of the proceeds?

Depends on how you set up the company and if you needed Thai shareholders in the first place. If you did need Thai shareholders, it then depends on what the clause in the shareholders agreement between the parties states.

2. What are the criteria for the Foreigner shareholders. Do they need to possess valid B1 visas and worrk permits or can they be 'resident' here on tourist visas.

They do not need to have any visa to be a shareholder or live in Thailand. They do not need to have a work permit unless they work.

3. Does the 25% capitalisation cash have to be maintained in the bank account on a yearly basis. If the company shows to be trading with good intentions and maintains good accounting practises, will this cash need to be maintained permanently.

The paid up capital does not need to be maintain in a bank account. It can be used as operating capital.

4. Are the fines for not meeting the 25% capitalisation, monthly or yearly.

As of Jan 1st 2007, you won't be able to even form the company without showing the money in the bank ( account in the founder's name) or a statement from a director he has recieved the funds from the shareholders.

5. I have a B1 business visa (expires June 2007), so I expect a work permit should be ok for me. I am also interested in brining a partner on board. He does not have a B1 visa. If I form the company can it sponsor a B1 visa for him and get him a work permit.

Yes but remember unless you are married with Thais, the register capital must be 4 million baht( for 2 work permits) and this must be paid up in order to get work permits.

6. I will be able to bring in about 1.5 million Baht capital to the company in cash, which I will use to finance the company's formation and running for the initial year. How can I make up the rest of the capitalisation.

Equipment, inventory, service

7. Will I have to employ 4 thais for every work permit?

no

Later if you want to get a long term visa based on business you will need this , but this is not required for having a work permit or a multi entry visa.

www.sunbeltasiagroup.com