Work Permit work around - one company two trades

[Jose]

I've noticed that if you setup your own company that you have to employ a certain amount of Thai staff, is it possible to setup a company that provides both catering and IT/Engineering personal/solutions to companies and use Thai for the catering and Brits for IT, as its one company would this meet the requirements.

sorry if asked before

[buksida]

You need 4 Thai staff for every farang, yes you can add more than one trade/profession to the company - the only way to find out if they'll allow such differing ones is to contact the labour department in Prachuab (the last number I had for them was 032-601088).

[barrys]

First make sure that these different activities are covered by the company's articles of association.
If you haven't set up yet, insist on having all the options entered in the articles from the outset.

As Buksi has said, you will need 4 Thais for each farang, though, and the capitalisation also has to rise with each farang, e.g. 1 work permit requires 2 million baht capitalisation, 2 work permits 4 million baht, etc.

You then cannot avoid being registered for VAT because your balance sheet will have to show sufficient turnover to cover the farang salaries of at least 600k p.a.

[Jose]

thanks for the answers, is it possible to avoid the capitalisation requirements if your married to a thai or if its a Thai owned company that employs farangs but not owned by farangs.
probably been asked 0000s of times.

[Winkie]

thanks for the answers, is it possible to avoid the capitalisation requirements if your married to a thai or if its a Thai owned company that employs farangs but not owned by farangs.
probably been asked 0000s of times.

No, its not. These rules apply to all Thai Companies

However, as a Thai Company, your Paid Up Capital only has to be 25% of your Registered Capital. However, the THB2M per Farang, I am not sure if this is based on Paid Up or Registered - sure someone more knowledgeable will confirm

[barrys]

thanks for the answers, is it possible to avoid the capitalisation requirements if your married to a thai or if its a Thai owned company that employs farangs but not owned by farangs.
probably been asked 0000s of times.

No, its not. These rules apply to all Thai Companies

However, as a Thai Company, your Paid Up Capital only has to be 25% of your Registered Capital. However, the THB2M per Farang, I am not sure if this is based on Paid Up or Registered - sure someone more knowledgeable will confirm

It can also include company assets - though quite often they don't check at all.

[Super Joe]

thanks for the answers, is it possible to avoid the capitalisation requirements if your married to a thai or if its a Thai owned company that employs farangs but not owned by farangs.
probably been asked 0000s of times.

No, its not. These rules apply to all Thai Companies
However, as a Thai Company, your Paid Up Capital only has to be 25% of your Registered Capital. However, the THB2M per Farang, I am not sure if this is based on Paid Up or Registered - sure someone more knowledgeable will confirm

The THB2M is based on Registered Capital. But the following reductions (extract from a lawyers website) are permitted on the Registered Capital requirements...
.
It's important to note however, that if the following conditions are met, minimum investment requirements are reduced by 50%:
• The employee is married to a Thai national
• The marriage is registered in Thailand
• The couple lives together

Also - although we may be pushing our luck with this - I understand the 25% 'Paid Up' doesn't have to be cash. It can be assets, equipment, stock and even, apparently.... knowledge

And aren't you permitted to draw down below the 25% if re-investing in the business!? Again, as a farang, drawing attention will probably not be the wisest of moves.


SJ