[ESTABLISHING A BUSINESS ENTITY IN THAILAND] 484
Equipment ); Other categories of Service Business (i.e., 1. Telecommunication Consulting Service; 2. Leasing service of Telecommunication Station Equipment; 3. Database Access Services; and 4. Domestic Very Small Aperture Terminal VSAT). However, this will be subject to certain qualification and conditions required for such specific business activities as mentioned in the Thai – Australia Free Trade Agreement. (iv) Being granted a business certificate for rendering specific 8 types of business under the Japan-Thailand Economic Partnership Agreement aka JTEPA Agreement. This will also be subject certain qualifications and required proportion of shareholding between Thai and Japanese investors as conditions for each type of business which includes (i-ii) Wholesale or Retail (except for distilled alcohol) of products manufactured by the company or subsidiaries located in Thailand under the same brand; automobile products manufactured by the subsidiaries in Japan under the same brand, (iii) Advertising Business, (iv) Hotel Business, (v) Restaurant Business, (vi) Management Consulting Service, (vii) Logistics, (viii) Consulting Service, except for every type of transportation service, Maintenance and Repair Service Business for Household electrical appliances that such companies conduct the wholesale businesses in Thailand and such products are manufactured by such companies or subsidiaries in Thailand under the same brand; or Household electrical appliances that the subsidiaries in Japan manufacture under the same brand.
Capital Requirement under the FBA A foreign entity that wishes to conduct business in Thailand must have a minimum capital to be used at the commencement of the restricted business and non-restricted business. The required minimum capital for each restricted business is at least Three Million Baht per business. This is only a minimum which is subject to the following formula: “ 25 percent of the average estimated expenditure per business per year for three years. However, this must not be less than three million baht.” Thus, it will need to calculate the amount of minimum capital to be used for each type of specific business in order to determine how much capital will be required in operating each specific business. For non-restricted business: the required minimum capital for each business will be at least Two Million Baht. Please note that full payment of minimum capital must be brought into the Kingdom prior to commencement of such restricted or non- restricted business. Work Permit & Visa Extension: In addition, please note that foreigners wishing to reside and work in Thailand will need both a non- immigrant visa and a work permit. A non- immigrant visa is initially valid for 90 days and can be extended for one year and is renewable. The procedures to acquire a non-immigrant visa are linked to procedures to obtain a work permit from the Department of Employment, Ministry of Labour, according to its set regulations and compliance. For a BOI or IEAT promoted companies, it is required to follow and comply with such Authority’s criteria and regulations set for work permit and visa extension for foreign expatriates.
ILN Corporate Group – Establishing a Business Entity Series
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