A company

Post by **kevars** » Thu Feb 02, 2006 3:20 am

just a question for ye wise ones , is it possible to set up a thai company now, even if i was not to use it for say a year ?

Post by **lomuamart** » Thu Feb 02, 2006 4:17 am

Would have thought that might have something to do with your visa?
Do the two co-incide?

Post by **Norseman** » Thu Feb 02, 2006 9:32 am

Am not sure it's a matter of the visa. I think it's more a case of address.
If you want to start a company, you'll need an address for that company.
A thai address, like the one you'll get when you buy a property or house.

Post by **lomuamart** » Thu Feb 02, 2006 9:52 am

What I meant was that a non-imm B visa, valid for a year, would be necessary to start the company up - assuming Kevars will be a director.
Seems a waste of money if the company isn't trading.
There could be tax implications as well.
An address is the least of the concerns, I would have thought.

Post by **JimmyGreaves** » Fri Feb 03, 2006 3:14 am

You sure you need a B Visa?

Post by **PJG** » Fri Feb 03, 2006 5:58 am

You do not need a Non Immigrant Visa to register a company. Just an address to register the company and a visit with a lawyer (preferably one who is qualified) to sort out the various forms and Fees. You will have to file an annual set of accounts and pay the relevant taxes.

Post by **buksida** » Fri Feb 03, 2006 1:53 pm

I wouldnt mind a little more info on starting up the company for property purchases so if anyone has answers to the following please share them:

1) Cost of setup 49:51 farang:thai company?

2) Requirements (don't need work permit, already have one)?

3) Operation costs (tax, accounting, admin)?

4) Any other hidden costs/items ?

5) Where and how do you go about doing it?

Post by **PJG** » Sat Feb 04, 2006 4:24 am

You will probably get the best advice from Colin at the Hua Hin Observer. I believe he charges arount Baht 25K to do everything for you.

You can get it done cheaper by finding a lawyer yourself. However, I believe that not many "Lawyer's" in HH are proprly qualified.

To set up the company you need a number of shareholders,(usually the Lawyer will find these for you). You can only have 49% share the rest must be Thai who then assign their voting rights to you .

You do not need a work Permit to be a shareholder.

After formation you need to file Annual accounts to the Tax Dept. This is normally done through a Bookeeper/Lawyer. As the Co. is a shell there should not be any Tax to Pay but you will have to pay for the Bookeeping.

One warning at the moment is that the Tax Dept is looking into the question of shell companies formed to buy property that does not trade.

Post by **poisoner** » Wed Feb 15, 2006 4:32 pm

buksida wrote:I wouldnt mind a little more info on starting up the company for property purchases so if anyone has answers to the following please share them:

1) Cost of setup 49:51 farang:thai company?

2) Requirements (don't need work permit, already have one)?

3) Operation costs (tax, accounting, admin)?

4) Any other hidden costs/items ?

5) Where and how do you go about doing it?

I've set up a Company without a work permit & happy to answer any questions if it helps?
Al

Post by **buksida** » Wed Feb 15, 2006 7:26 pm

Cheers poisoner,
I already have a work permit so wouldnt need one with the new company, I'd need to be majority shareholder of it though (49%) and it may be used to purchase property. I would also make the odd purchase and issue the odd invoice using it.

What do I need to know/do?

Can be a little more specific via PM if you like.

Post by **johnnyk** » Thu Feb 16, 2006 1:37 am

I'll be setting up a company to buy my house/land and one piece of advice I received was to make sure the company showed some business activity, ALWAYS file tax returns and even show a bit of profit to pay a bit of tax on.
A bit of tax paid "keeps them sweet" my adviser said.

Post by **JimmyGreaves** » Thu Feb 16, 2006 9:58 pm

Would be nice to get some posts from someone who has a few years experience with land/property purchase through the sleeping company route contributing, you would think with the amount of property development in HH and foreign purchases that this subject would be clear. TIT springs to mind giving me a headache. Also why no recognised solicitors in HH, seems that you have to go BKK for this service.

My Concerns:

49% Company doing no trading for say a year or two, I would like some evidence of what the authorities have done in the past and present. (main concern)

Yearly running costs
(Business address seems to be a high cost with quotes of 7K+ per month)

++++

The lawyers seem reluctant to commit. Paid 35K for the company setup in BKK

Post by **caller** » Fri Feb 17, 2006 4:24 am

Memories a bit askew, but I read somewhere (maybe this site?) that a problem with a non-trading "company" property only surfaced when you want to sell.

Something to do with legal docs to do with the sale and the land registry (whatever its called there) wanting to see evidence of trading and the knock on effect when this can't be produced.

Not all of the agents I have spoken with advised that you had to submit annual returns etc. Some said you don't?

Post by **johnnyk** » Fri Feb 17, 2006 4:53 am

JimmyGreaves wrote:49% Company doing no trading for say a year or two, I would like some evidence of what the authorities have done in the past and present. (main concern)

Yearly running costs
(Business address seems to be a high cost with quotes of 7K+ per month)

++++

The lawyers seem reluctant to commit. Paid 35K for the company setup in BKK

one advice I had was rent house to yourself or Donald Duck whatever, stick deposits in bank from time to time and show revenues for a year or 2 offset with expenses to show no profit or at least very little. This is considered normal as companies need to get their legs.
7K/month sounds crazy. I have heard 15K a year.

Post by **JimmyGreaves** » Fri Feb 17, 2006 5:28 am

Hi johnnyk

Apparently a ltd company needs a business address and cannot use a residential address, My company setup included 3 months free, using the lawyers office address in Bangkok.

Sorry I made a mistake on 7K per month, apologies, I meant about 7K 3 months:

Here is a copy of a well known Bangkok firm who do legal work for farangs. I did not use Sunbelt however

Virtual Office
Your Sunbelt Asia virtual office will provide your new company with an official commercial address, answering services, mail drop, meeting rooms (based on availability), and computer use for 5 hours in one month all for a low monthly fee.

Registration fee for Virtual Office
2,000

Monthly rent for Virtual Office (min. 3 months)
2,500

ps Not quite in the same position as you johnnyk as I am only buying land with a plan to build later. (Suppose I could still rent for parking space or some other use :-) ). Are you also buying the land and house via the company route then?