Thread: Business options

Originally Posted by Moonraker

The 2 million baht capital is a paper exercise.

I know the basics, I'm more looking for what might best be suited to a small business such as mine would be (to begin with). Has anyone here opened up a small company/one man band here themselves?

For example, could it be a better idea to have my misses open a company instead of me opening it in my name?

This practising lawyer specializing in Thai company start-ups has written some (what I believe to be) excellent articles on the matter which contradict a lot of previously obtained advice I had received from arm-chair layperson lawyer wannabes.

Originally Posted by dirtydog

Open it in the misses name, if there are questions over breaking company law etc in the future it is better she deals with it rather than you.

Yup, I'd agree. It's virtually free for your misses to set up legit, she simply employs you (minimum 50k salary per month)

Basically it will cost you about 3.5 k in taxes per month to do it legit.

Moving to Cambodia might be a better idea - much more relaxed attitude and rules that favour small businesses


Simon

Originally Posted by Albert Shagnastier

Originally Posted by dirtydog

Open it in the misses name, if there are questions over breaking company law etc in the future it is better she deals with it rather than you.

Yup, I'd agree. It's virtually free for your misses to set up legit, she simply employs you (minimum 50k salary per month)

Basically it will cost you about 3.5 k in taxes per month to do it legit.

Are you sure its that simple?
Surely, if it WERE that simple, all manner of married expats who cant, or wont make the financial requirements for an extension to visa based on marriage (or retirement for that matter) would be doing similar.
No?
I'll admit to having no knowledge on this, but i am just applying common sense and logic to the subject in my doubting.

Reg

Originally Posted by registrar

Originally Posted by Albert Shagnastier

Originally Posted by dirtydog

Open it in the misses name, if there are questions over breaking company law etc in the future it is better she deals with it rather than you.

Yup, I'd agree. It's virtually free for your misses to set up legit, she simply employs you (minimum 50k salary per month)

Basically it will cost you about 3.5 k in taxes per month to do it legit.

Are you sure its that simple?
Surely, if it WERE that simple, all manner of married expats who cant, or wont make the financial requirements for an extension to visa based on marriage (or retirement for that matter) would be doing similar.
No?
I'll admit to having no knowledge on this, but i am just applying common sense and logic to the subject in my doubting.

Reg

I can only guess but I reckon they'd question why the business did not appear to be trading after a while. Surely the business would have to show some trading and if the money was available to make it appear to be trading, then they should be able to qualify for a more convenient visa anyway?

^ So your wife has a business that makes 20k a month.
So she pays no tax.

Just cos a whiteys involved it doesn't have to be a big business.

This throws a spanner in the works

Finally the Labor Department has recently reintroduced the obligation of having 4 Thai Employees per work permit.We understand that this move follows a complain from the Immigration Department.

Working in Thailand: What you need to know about work permits | DoingBusinessThailand.com

The last time I had a WP the above wasn't necessary

Originally Posted by Moonraker

This throws a spanner in the works

Finally the Labor Department has recently reintroduced the obligation of having 4 Thai Employees per work permit.We understand that this move follows a complain from the Immigration Department.

Working in Thailand: What you need to know about work permits | DoingBusinessThailand.com

The last time I had a WP the above wasn't necessary

Glad you went there and did some reading and now you can approach the situation from the perspective of reality.

Keep reading, there's more myths to be debunked yet.

As i'm married to a Thai, the 4 Thai requirement is reduced to 2.

I could open the business myself and employ the wife +1, but I'd have to be generating more revenue before I can consider that, it's a bit catch 22. It'd still screw me somewhat when it comes to expanding and employing more writers though, I'd have to stick to hiring freelancers instead?

since when have you needed 2 million baht to set up a Thai company?

? BOI : The Board of Investment of Thailand

All you need these days is 3 promoters - and I believe the share value is like 10 baht.

You may need 2 million baht for a work permit (and I think that only applies to the express application).

More worrying is someone who has a customer base whom he believes pays more on the issue of legit. My experience is that legit or not, people pay for what they get.

Originally Posted by William

since when have you needed 2 million baht to set up a Thai company?

? BOI : The Board of Investment of Thailand

All you need these days is 3 promoters - and I believe the share value is like 10 baht.

You may need 2 million baht for a work permit (and I think that only applies to the express application).

More worrying is someone who has a customer base whom he believes pays more on the issue of legit. My experience is that legit or not, people pay for what they get.

1.2.2 Filing a Memorandum of Association

After the name reservation has been approved, the company must then submit its Memorandum of Association (MOA) to the Department of Business Development of the MOC. For a private limited company, the MOA must include the name of the company, the province where the company will be located, the scope of the company’s business, the capital to be registered, and the names of the promoters. The capital information must include the number of shares and their par value. At the formation step, the authorized capital, although partly paid, must all be issued.

For a public limited company, the MOA must at least include the name of the company, the purpose of the company to offer shares for sale to the public, the objective of the company (which must specify clearly categories of business), the registered capital including the type, number and value of shares, the province where the company will be located and the names, dates of birth, nationalities, and addresses of the promoters and the number of shares for which each of them has subscribed.

The official fee for registration of the MOA for a private limited company is 50 baht per 100,000 baht of registered capital. A fraction of 100,000 baht is regarded as 100,000 baht. The minimum fee is 500 baht and the maximum fee is 25,000 baht. For a public limited company, the official registration fee is 1,000 baht per 1,000,000 baht of registered capital. A fraction of 1,000,000 baht is regarded as 1,000,000 baht. The maximum fee is 50,000 baht. Although there are no minimum capital requirements, the amount of capital should be respectable and adequate for the intended business operation.

However, if the company falls under the definition of “foreign” under the FBA, before commencing its business, the following rules shall be applied:

– If the company engages in activities specified in the FBA, its minimum registered capital would be greater than 25% of the estimated average annual operating expenses of the operation, calculated over 3 years, but not less than 3 million baht.
– If the company does not engage in activities specified in the FBA, its minimum registered capital would be 2 million baht.

If the company intends to employ foreigners, other minimum registered capital requirements may also be applied

^ I don't disagree with that; all I highlighted was the link to establishing a company.

If you either wanted to ensure the company was a "foreign" controlled/owned company, or if you wanted to employ one or more foreigners, then you would need to consider a number of other issues - including, for example, if you could get BOI or any other investment exemptions [which I doubt very much would apply in the case of the OP, but one never knows].

Originally Posted by Simon43

Moving to Cambodia might be a better idea - much more relaxed attitude and rules that favour small businesses


Simon

I like the idea of that... any more details?

Originally Posted by Albert Shagnastier

Originally Posted by dirtydog

Open it in the misses name, if there are questions over breaking company law etc in the future it is better she deals with it rather than you.

Yup, I'd agree. It's virtually free for your misses to set up legit, she simply employs you (minimum 50k salary per month)

Basically it will cost you about 3.5 k in taxes per month to do it legit.

Albert, do you have any more info about this way?
I heard it before, thought it was an obsolete rule replaced by 2008 alien employment rules, but then I heard a friend of me that has been employed in wife's restaurant this year 2012 in rayong province. No company, business need to be active since minimum one year minimum with paid taxes, need 4 thai employed. Pretty sure can't be done in many places such as bkk, pty, samui, phuket but in some less 'famous' areas looks like it's still possible. Trying to gather more info on the subject but not easy I guess because little appealing and rewarding to government offices and law firms.

Many thanks for any hint about

About the minimum monthly wage to get the work permit depends on the nationality of the applicant. I have this, maybe is outdated now, check it out.

The required minimum monthly salary of the applicant, which depends on his
nationality. Americans, Europeans, Australians, Canadians, or Japanese must have
a monthly salary of at least THB 50,000; Hong Kong, Singapore, South Korea and
Taiwan nationals - at least THB 45,000; nationals of other Asian countries,
Central and South America, Eastern Europe, Mexico, Russia, South Africa and
Turkey - at least THB 35,000; and nationals of Africa, Myanmar, Cambodia, Laos
and Vietnam - at least THB 25,000.

moonraker you seem like a very decent chap
but you really ought to get legal in a foreign country
especially te tailand.

you will have absolutly no legal rights if it comes on top.
you'll be taken for a haircut and shown thai hospitality. .

by the way,,,, who do you trust in the land of smiles ,dragons and vampires.

that's a classic business to use an offshore company for, doesn't help with the visa though......