2m paid up capital

[Mr Tom]

I'm looking at opening this new biz in Thailand and getting myself a work permit from it. I'm getting mixed messaging on this 2m required capital. Does anyone know if I actually have to show that I have that much to invest, either buy showing a personal bank statement, or transferring it to the businesses corporate account? Or is it just registered on paper? What do they mean by paid up? Thanks.

[johng]

I'm looking at opening this new biz in Thailand and getting myself a work permit from it.

Don't

Or is it just registered on paper? What do they mean by paid up? Thanks.

Well if you insist then registered on paper is what they mean.

[fletchsmile]

"Paid up" means the shares have actually been issued and paid for. 

 

When I was working for companies looking after this for them, the 2mn baht had to be issued, i.e the shares actually had to be issued and registered to the shareholders. They didn't have to be "fully paid up" but could be "partially paid" with a minimum payment of 25% actually made and the remainder paid within a "reasonable time frame.

 

So if the par value of the shares is 1 baht each, the company needs to issue 2mn to the shareholders and they would have to pay a minimum of THB 500,000 for them, with the remainder paid for at a later date.

 

Another practice people use is to fully pay for the 2mn shares of 1 baht so they are issued and fully paid. The company can then loan back the money, but you need to demonstrate a reasonable commercial rate for the loan, as well as ensure the company actually has enough money in it to do its business, which is one of the key reasons for capital in the first place :)

 

 

Edited August 5, 2017 by fletchsmile

[Mr Tom]

@fletchsmile Thank you. That's helpful. One lawyer I spoke to said they setup the company first as 100% Thai so they don't look at where the registered capital is coming from. Then add the foreigner as a share holder later. 

[VocalNeal]

Mr. Tom are you stuck on owning 49% or will this be with spouse?

 

If you go say 68%-ish spouse and 32%-ish you then no one will look closely and you probably won't need any capital. 

 

Happy to give you my lawyers name.

[Mr Tom]

@VocalNeal I will have to own 49% percent, not married. I would appreciate the contact if you have a good lawyer though. Thanks.