Starting a Business in Thailand

[ADare]

I have just got married to my Thai wife on the 14th February. The bad part is that i am now back in the UK and she is in Thailand . I have been thinking long and hard about where we will live together and given that she is an Assistant Profesor, I have come to the conclusion that it will be best if I move over to Thailand (as soon as possible).

I do not wish to teach , although she has offered me a number of jobs, teaching Maths being the one she prefers. She does not want me to teach English due to the bad reputation these teachers have.

I am therefore exploring what other opportunities that may be available to me. One of these is that I have the chance to import a new range of colour cosmetics products into Thailand from the UK.

What I would like to know, if any one can help me, is are there any good web sites out there that will tell me about setting up a Limited Company in Thailand and also how do I find out the rates of duty that will be charged on the importation of these products into Thailand.

Any help in this matter will be appreciated.

Andrew

[William]

Andrew

What, specifically, would you like to know about setting up a limited company?

~W~

[ADare]

Hi William,

First of all the initial costs, can I buy one of the shelf, any ongoing costs annual filling fees etc., I have been given a few details that if I am to get a work permit I will need to employ a number of Thai workers initially. Can I have the registered office at my home address or does this cause problems.

Are there any other cost or implications about me (farang) owning a Limited Company. Do I need to have Thai shareholders, Directors, Company Secretary.

What are the taxation rates. What would be the average cost of employing office staff, wharehouse staff, any regulator implications / costs to this.

I am just trying to get a business plan together that will tell me how much money I can make, or more importantly, how much money I need to make in sales to break even. So any information or any good web sites that you know about that I can get this type of information would be appreciated.

Andrew

[William]

Andrew

See some responses below:

can I buy one of the shelf
yes; Sunbelt Asia sellsshelf-companies. The price is advertised on TV - think its like 8k or so

any ongoing costs annual filling fees etc.
yes - depends on the nature of the business: VAT, SBT, Corporation tax, stamp, MoC filings fees being among them

I have been given a few details that if I am to get a work permit I will need to employ a number of Thai workers initially.
Not only intially, but ongoing. Currently this is ratio is 4:1 (Thai:foreigner). Used to be 7:1

Can I have the registered office at my home address or does this cause problems.
Yes, you can have your registered address at home, but you need to display the company name somewhere prevalent, which may make your home a bit of an eye-sore.

Are there any other cost or implications about me (farang) owning a Limited Company.
Too numerous to tell - the main one being the Foreign Business Act. This largely depends on the nature of the business and the size of your initial investment (as to whether you can obtain exemptions by means of such things as Board of Investment priviledges)

Do I need to have Thai shareholders, Directors, Company Secretary.
You don't need to, but you may well find you want to in order to smooth the process. Flip-side is whether you can actually find any Thais who want to be shareholders/directors of your company, given current circumstances

What are the taxation rates.
Corporate tax is 30% - SBT, VAT, etc. are all different and can range from as low as 0.01% (for some stamp duties) to 7% for VAT.

What would be the average cost of employing office staff
Not legal - commercial: but I understand the average [Thailand whole] is circa. 18k a month. If you are outside BKK, you may well find this is much lower

wharehouse staff
Same - with a lower rate (say, circa. 12-15k)

any regulator implications / costs to this.
Yes, lovely thing called Thai Labor Law, which is somewhat employee friendly

[Marmite the Dog]

Rule number 1

Do not involve any Thais in the business as they will either constantly fuck things up or rip you off.

Good luck!

[ADare]

That's where I may have a problem then. I have sourced the products, I have obtained at this stage a verbal agreement on exclusivity in Thailand and due to my previous dealings with the company I have achieved a discount on the standard export price.

What I do not yet have is the contacts in Thailand within the cosmetics market. I am therefore currently talking to one person about trying to distribute this, but it is in the early stages yet. So somewhere along the way, I am going to have to involve a Thai as an important part of the business.

I do hope you are not right.

Andrew