Investing in a Thai Business

[biatch0]

Wondering what the "requirements" are to invest in a Thai company - I've read (in passing) that as a foreign shareholder that you need to be a director and draw a salary (and thus need to declare/pay taxes etc). Ideally, I'd just be a silent investor (and not actively participate/work in the company), and at most would only draw percentage of profits (if any) as I'd prefer to avoid the headaches of (more) taxes where possible. 

[FritsSikkink]

You don't need to be a director and draw a salary.

[Time Traveller]

Money is the only requirement

[Nanaplaza666]

You have a lot of qeustions for a "SILENT" investor ???? . Money talks BS walks, if you feel like you can invest and don't loose and hopefully make money , don't ask any qeustions just invest . You want to be a silent investor anyway and don't want the hassle of any taxes or whatsoever . So i don't understand why all these qeustions . The only reason for these qeustions could be that the company you want to invest in doesn't want you to be silent . Otherwise just take the risk and invest or DON'T whatever . 

[PatOngo]

Invest no more than you can afford to walk away from!

[khunPer]

On 10/23/2020 at 8:00 AM, biatch0 said:

Wondering what the "requirements" are to invest in a Thai company

As some has already posted: Money...????

 

You cab be investor/shareholder in both private companies and stock exchange listed-companies by simply buying shares.

 

However, there are some restrictions – or rather limits – as a foreigner, except US-nationals, cannot own more than 49 percent of a Thai company, or business. So being investor in a private Thai company limited, the total number of foreign investors, or shareholders, cannot exceed 49 percent of the registered shareholder capital.

 

Any dividends paid will be withheld taxed with 10 percent, you don't need to declare anything, if you accept to pay the 10 percent withheld tax.

 

Capital gain from stocks, except those traded on SET (Stock Exchange of Thailand), is taxable where you are tax-resident, i.e. stays 183 days or more in a year.

 

You can be member of a board (board of directors) and attend high level meetings without a work permit, or any special visa, but you cannot perform any physical work – like being a managing director – without a work permit.

[Leaver]

5 hours ago, Time Traveller said:

Money is the only requirement

And a lack of brains, but that's free.  ????

[biatch0]

8 hours ago, khunPer said:

Any dividends paid will be withheld taxed with 10 percent, you don't need to declare anything, if you accept to pay the 10 percent withheld tax.

Thanks for this - this was what I was most concerned about. The rest of the details I'm already aware of. 

 

I am, however, considering using the "position" to gain a work permit (in order to re-enter Thailand assuming COVID doesn't clear up and tourist visas remain difficult to get) which is where I think the minimum salary and subsequent taxes/declarations for a foreigner may come into play. Will need to keep eyes open over the next couple of months to see what my options are...

[khunPer]

31 minutes ago, biatch0 said:

Thanks for this - this was what I was most concerned about. The rest of the details I'm already aware of. 

 

I am, however, considering using the "position" to gain a work permit (in order to re-enter Thailand assuming COVID doesn't clear up and tourist visas remain difficult to get) which is where I think the minimum salary and subsequent taxes/declarations for a foreigner may come into play. Will need to keep eyes open over the next couple of months to see what my options are...

There is no minimum salary – except the about 325 baht a day – but when applying for extension of stay based on work permit, the immigration wish to see a minimum salary, of which income tax is paid, the salary is however depending of country of origin; if it hasn't change recently, this table with monthly salaries might still be valid...

Quote

• Countries in Europe (except Russia and eastern Europe), Australia, New Zealand, USA, Canada and Japan – Baht 50,000
• South Korea, Singapore, Taiwan and Hong Kong – Baht 45,000
• Countries in Asia (except Japan, South Korea, Singapore, Taiwan, Hong Kong, Cambodia, Myanmar, Laos and Vietnam), Eastern Europe, Central America and South America, Mexico, Russia and South Africa – Baht 35,000
• Countries in Africa (except South Africa), Cambodia, Myanmar, Laos and Vietnam – Baht 25,000

Source: "Minimum Salary for Foreign Employees for Work Permit and Visa Extension".

 

You can find a Thai salary guide HERE.

[biatch0]

Perfect - cheers. 

[Leaver]

On 10/24/2020 at 4:29 PM, khunPer said:

However, there are some restrictions – or rather limits – as a foreigner, except US-nationals, cannot own more than 49 percent of a Thai company, or business. So being investor in a private Thai company limited, the total number of foreign investors, or shareholders, cannot exceed 49 percent of the registered shareholder capital.

Which is funny, especially when the foreigner puts up 100% of the capital.  ????

[khunPer]

3 hours ago, Leaver said:

Which is funny, especially when the foreigner puts up 100% of the capital.  ????

It's not "funny" at all to put up 100 percent of the capital and own 49 percent only of one's company...????

[Leaver]

4 minutes ago, khunPer said:

It's not "funny" at all to put up 100 percent of the capital and own 49 percent only of one's company...????

It's funny that people actually do it here.  They would never consider such a rubbish deal in their home country, yet here, they do it.  

[khunPer]

1 hour ago, Leaver said:

It's funny that people actually do it here.  They would never consider such a rubbish deal in their home country, yet here, they do it.  

Amazing Thailand, same-same but different...

[Leaver]

On 11/1/2020 at 12:01 AM, khunPer said:

Amazing Thailand, same-same but different...

Not same-same.  Just ridiculous.  But hey, live the dream in Thailand.  ????