SETTING UP A
Rules for work permit holders. New companies wishing to have
work permits need to show their share capital in the Bank? FOR EVERY
FOREIGNER wishing to join an existing Thai company you must now show 2m
baht in the bank when they go to register. For each additional foreigner
you need to show 2m baht per each. Company rules came into being regarding share capital when
forming a new company. Its a lot easier to buy a second hand company now then have a new company as the Thai director must have access to the Company Bank account; all the shareholders will be interviewed on work roles so you cannot have nominees and the Thai shareholders must have bank accounts. Your premises will be inspected as well. One work
permit 2m baht and you need WP3 form from the labour Office to apply for
a work permit and increases of 2m baht per work permit after that. A 1m
baht company does exist again for foreigners regardless if married to
Thais or not but you cannot use to have work permit and you will not get a non immigrant B visa as you need WP3 or Tor Tor 3 form if you go
to an embassy away from Thailand etc. THIS MEANS YOU MUST HAVE A COMPANY SET UP ALREADY.
You are not allowed to
form a Company just to hold a house or property under. The law states
that you must carry on a business and in March 2006 the authorities set
about investigating companies and their employees. A Company must file
yearly audit; have 7 shareholders and the Thai workers. This old law was enforced on May 25th
2006 and now Companies who have properties must prove where the
money came from & all new house sales under Companies will be looked
at. With housing developments foreigners
have benefited themselves on property sales
so this practice is now under investigation and especially in high level
property sales in Samui, Pattaya, Phuket. Many foreigners & small
property owners are affected by this now but like anything if you do
things right in Thailand you will be OK but always ask second
opinions!!!! It may save you in the long run.
In a company you need 7 partners &
foreigners can only hold 49% shares but you can according to the
investment control 100% via B.O.I. (Board of Investment) or if American
have an Amity company. Foreigners as
from 2001 can make up 6 out of 7 shareholders but
Thais still hold 51% of the shares. What one does
not know until they decide to form a company is that certain businesses are
closed to foreigners. These businesses are categorized into 2 different
areas with 3rd open. So when you form a company make sure it doesn't come under the
following or write to us.
The Alien Business Law (N.E.C. Announcement 281).
Business activities falling in categories A & B are generally closed to foreigners. Under
category C you must obtain a permit prior to commencing business. Businesses outside these categories are
exempt. The Ministry of Commerce will also help applications of non
Category A: 1.Agriculture: rice farming; salt farming. Commercial
Business: Internal trade in local agriculture products, Land trade.
Service business: Accounting, farming animals, architecture, advertising, brokerage,
auctioning, Barber, hair dressing & beautician. Building industry.
Category B. 1. Agriculture Business: orchids, cultivation, animal
husbandry including silk worm raising, timbering, fishing. 2. Industrial
& Handicraft: Rice milling, Flour making, sugar, alcohol & non
alcohol drinks, Ice cream, Pharmaceutical manufacturing, cold storage,
timber, gold, silver and inlaid stone, wood carving, lacquer-ware, match
making, cement etc, Dynamiting rocks, Manufacturing garments &
shoes, Printing, newspaper publishing, silk weaving or silk printing,
manufacture of finished products in silk.3. Commercial: all retailing
not in category C. Ore trading not in Category C, selling food an
drinks, trading of antiques & fine arts.4 Service Industry: Tour
agency, Hotels except Hotel management, photography, laundering, dress
making and service jobs.5. Land, water & ie. transport.
Category C. You are allowed to do the following. Exporting, all
wholesale trades not in A & B. retiling machinery, equipment &
tools, selling food, beverages that promote tourism. Industrial &
handicraft Business: manufacturing animal feeds, vegetable oil
extraction, textile manufacturing, dyeing, fabric printing, glass ware
manufacturing, making plates and bowls, stationary & printing paper,
rock salt mining, mining.
Service: anything not in A or B.
Costs 25,000 baht plus you need to have 7 shareholders in place; Bangkok is usually more up to 54,000baht . Prices
may not include Govt fees & ID tax code for you or VAT reg. If you use our
services we outline in English each step you are paying for &
no hidden costs are included. We welcome any questions or queries you
IF INTERESTED WE DO HAVE AUDITED COMPANIES FOREIGNERS WISH TO SELL. POA.
Those early companies
used lawyers who in turn used their staff as nominees or Thais off the
streets. Once paid off then that's the end of those nominees, or you
thought. However one must remember that if you make a yearly profit you
must pay dividends to all the share holders. But, where are they:
"the inevitable, my lawyer will take care of it"?? A lawyer is
not an accountant so make sure you differentiate between having both
when you start a Company. If you are not paying VAT, Social Welfare tax
& no yearly audits you will be fined. If you own a property and use
a company you must carry on a business & run into profit mode after
One can transform a Thai company into a foreign
firm. For some of these companies it is to risky to maintain the Thai status as the intention
violates the Alien Business Law. It is now difficult for
small and medium foreign companies with capital registration of less than Thai Baht 100 million to get
a wholesale license, service license and/or retail of machinery-equipment
license as the application has to be approved by a 21 persons
committee comprising of high-ranking authorities from various ministries etc. This committee
will protect small and medium Thai Business.
COMPANY NAME: Cannot be a country or city
name & must end with the words: Company Limited (Co. Ltd);
Corporation Limited (Corp.Ltd); or Limited (Ltd). [ CHECK
SETUP COSTS ]
ALL FOREIGNERS: OUR LAW COMPANY ADVISE IS FREE
Dont you get caught out on excessive charges to set your company up. Many have fallen into the trap!!!! A company formulated according to what you wish to do is our guidance & your success.
Only open to
USA companies and individuals but you can own 100% of your company. You
need a company first and then you apply to the USA Embassy in Bangkok.
To see what you must do go to [ Amity treaty
now offer a Thai work permit, Thai company & Thai limited
partnership. Ask us for more information.
or go to [ LAWYER ]
[ Guesthouse biz ] [ Bar Business ] [ Biz advice buying ]
We assist all buyers of
property and we have our own builders, architects and staff on hand to help you. Check out www.thaiexpatlaw.com We can assist on all law matters in Thailand with English speaking 24 hour service