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nongfrank

Form Of Companies For Foreigners ?

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I know that there are many different form of Companies which can be runned by foreigners. The most known is the Company Ltd.

Bur how is it with the unregistered/registered Partnership and the Limited Partnership. Thay are possible for the foreigners too ?

What kind of paperwork is required and what are tne cost ?

Thanks Frank

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Contact Sunbelt Asia, they are one of the forum sponsors. They can tell you all you need to know about the various forms of operation here in Thailand.

Dan

I know that there are many different form of Companies which can be runned by foreigners. The most known is the Company Ltd.

Bur how is it with the unregistered/registered Partnership and the Limited Partnership. Thay are possible for the foreigners too ?

What kind of paperwork is required and what are tne cost ?

Thanks Frank

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I know that there are many different form of Companies which can be runned by foreigners. The most known is the Company Ltd.

Bur how is it with the unregistered/registered Partnership and the Limited Partnership. Thay are possible for the foreigners too ?

What kind of paperwork is required and what are tne cost ?

Thanks Frank

I don't see much point in a limited partnership as it has to file audited accounts like a company and still needs a managing partner with unlimited liability and must have majority Thai partners. Its tax rates are the same as a company's. A registered unlimited partnership seems even more pointless since it also has to file audited accounts and has unlimited liability for all partners. On the other hand many people choose an unregistered partnership to operate small businesses. No audited accounts are required and it is possilble to just file income with the Revenue Dept, if keeping detailed records of expenses is too much trouble or receipts are not available, and they will deduct a standard percentage of expenses depending on the type of business in order to determine tax liability e.g. 70% for a restaurant. A partnership works better for tax than a sole proprietorship because it is treated as a separate entity for tax, whereas income from a sole proprietorship is added on to whatever other income the individual might have. Foreigners can be partners but must be in the minority and, as far as I know, need work permits even if they are not working day to day in the business which would require VAT registration. This is Catch 22 for foreigners since once you are registered for VAT the Revenue will find it mush easier to track your revenue. Therefore the standard Thai practice of grossly underreporting revenues will not work as accepting the Revenue's standard expense deduction for the business based on true revenues will usually result in more tax than if you filed the actual accounts. At that point a company starts looking more sensible and it allows for deduction of depreciation costs too, whereas an unregistered partnership can only deduct current expenses. Some farangs like the unregistered partnership structure using all Thai nominees as a simpler and cheaper way to joint venture with other farangs to run a small business like a restaurant than forming a company. A company would require nominees anyway with all that involves and would be subject to greater scrutiny and hassles from auditors. I just heard a talking head on CNBC say that Pakistan allows 100% foreign investment in all sectors. Think carefully before getting into any business in Thailand that needs convoluted structures and nominees. Pakistan might be a better bet!

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I just heard a talking head on CNBC say that Pakistan allows 100% foreign investment in all sectors. Think carefully before getting into any business in Thailand that needs convoluted structures and nominees. Pakistan might be a better bet!

Pakistan? Are you serious? Personally I would rather take my chances with Thailand (warts and all)....

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