COMPANIES & LIMITED PARTNERSHIPS

 

 

SETTING UP A THAI COMPANY: 

 Foreigners setting up a company need to set up a 2m baht Company for one work permit. If you want 2 foreigners employed then you need a 3,000,001plus baht company. Cost for share registration is 5500 baht per 1m baht but this will vary so please ask us. DO NOT BELIEVE YOU CAN SETUP A COMPANY CHEAP AND THEN THATS IT. YOU MAY THINK YOU ARE WINNING BECAUSE IT WAS CHEAP BUT WATCH OUT?? The new rules governing companies may make you think twice. The shares retained by Thais now the shareholders must have physical bank accounts and if you make a profit you must pay dividends equivalent to the shareholders holding. The Thai director must have access to the bank account as well.

WHAT ABOUT BUYING AN EXISTING THAI COMPANY; good idea as there are many new rules starting up a new company now SOME OF WHICH you will not like. We do have 2 foreign owned companies for sale now May 30th 2007. These companies are fully audited with no liens and will assist any foreigner wishing to do business in Thailand. The prices are reasonable and you have a nead start plus all changeover costs included in the cost. You also will receive excellent accountant who spoeaks English and your monthly fees will be only 2800baht per month (an accountant you must have with a Company). These companies are based in Chiangmai but can be moved anywhere once the changeover made. You must have physical office address as well you can retain the existing name or change to what you desire once the business reverts into your name. You are a director as well but you will need non immigrant B visa if you wish to start a business. Please ask us more information. POA

Costs 20,000 baht although Bangkok is usually more. Our price do 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 have.

COSTS OWNING A COMPANY

1/. Taxes: Withholding tax, VAT and Social welfare taxes paid monthly 2/. Monthly accountant fees: 
3/. Salaries for 4 employees in your company & tax for the same. 4/. Yearly audit fee: 
5/. Normally utility costs 6/. Running costs & legal fees: Ongoing visas & work permits costs

COSTS TO SET UP A THAI COMPANY: REMEMBER THE COSTS TO SETUP ARE DEARER IN BANGKOK THAN PATTAYA OR CHIANGMAI BUT THIS IS JUST A ROUGH GUIDE

1/. Registration of company & legal fees from 25 - 50,000 baht 1 off payment but can be higher in Bangkok & according to what business you need to set up plus what licenses etc you will need

2/. Accountant fees 2500 5000 baht per month again it depends on your workload as well

3/. Work permit 9000-15,000 baht setup then 3000 baht per year without legal fee to present.

4/. Non immigrant visa  must leave the country to get non immigrant B visa 5000 baht with your company papers established not before.

5/. Office setup fees:

     a/. Rent or lease a building  10 - 30,000 baht per month. Deposit 2- 3 months

     b/. 4 Thai staff salaries 4500 25,000 baht per month. Office workers approx 8-12,000 baht

         Computer staff min 10,000 baht ; salaries depend on skills and can be more.

     C/. Power & water with air cons  2500 baht min per month

     D Office furniture, redecorate, computers & furnishings 200,000+ baht

     E/. Telephone ADSL, /fax 2000 baht per month min

     F/. Incidentals 2000 baht per month

6/. Taxes Withholding, VAT & social welfare tax min 8500 baht per month

7/. Transport 2000+ baht per month

8/. Food, water, waste, advertising costs etc 1000 baht per month

Your budget for the first year should be 1-1.5 m baht min depending on your location; rent; salaries and work. Every company setup is different as it depends on the licenses one must have and the work you wish to do, where you want to carry on as well as unexpected expenses which always occur. Time to take approx 1 month to setup with work permit say 4- 6 weeks. The above is a conservative estimate but be prepared to pay for what you want. After 1 year a foreigner can apply for a year visa but you really need your lawyer to assist you and costs may be 10,000 baht + to process your work permit and visa and pay government fees. Once you have a year visa then you must pay VAT tax as well as have 4 employees (not nominees ). You must have your yearly audit processed. The visa takes 3 months to process as you will be under consideration while the Immigration and commercial reg go thru your accounts etc. Yearly audit also can cost anything from 7000-25000 baht per year and you need this before you apply. Remember you still have to pay your living costs away from the Office, which will be separate from the above costs. Having a company can be a headache and only have what you need but to work in Thailand you need to be either employed by a Company with work permit or start your own Company with a work permit. You do need a good honest accountant & one separate from your lawyer if possible who is a chartered accountant not just an office worker. Management is the prime requirement of any business here before you even think to start by recruiting off the street thinking you have the right person. One day they come to work the next day they disappear. However to every good business there is good management so the success is having the right people around you and doing everything properly from the start. If you start by offering your staff cheap salaries expect them not to come to work one day or your database has disappeared. You get what you pay for and never think cheap is the way to go as you may end up losing your business. Gone are the 3000baht salaries in Thailand per month. If you follow our guide you can win and be a success in Thailand.

 

Buying into a Running Business in Thailand: If you want to work in Thailand then you need a work permit. This means you need a Thai company to assist you --not us. To set up you need to show 2m baht for share capital and have enough money for your business setup and 4 Thai employees ---- not nominees; wages, tax including VAT, Office, social welfare and withholding tax etc and accountant. Be aware this will costs around 1.5 - 3m baht the first year of business so buying into a new or existent business expecting a work permit take this into consideration on the asking price. Being a partner in a business with work permit will cost min 3m baht if there is goodwill in the business and the books are sound. For each work permit you must have 4 Thai employees on your books! pay VAT and other taxes plus accountant and visa fees etc.

 

 

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