by Scrunchleface

Business In Thailand And Preference Shares

Most business activities in Thailand are prohibited or restricted for foreigners. Foreigners are generally not allowed to operate businesses in Thailand. Some specific business categories are absolutely prohibited for foreigners while others may be operated if an exemption and permission has been granted under a specific Act or treaty.

Instead of applying for a special business license or exemption under Thai law the most popular form of business entity among foreign investors in Thailand is the private Thai limited company (majority Thai owned) structured with preference shares allowing the foreign investor to control the company.

]]>

Under the current structure of the Foreign Business Act foreigners can operate most restricted businesses for foreigners by using preference shares.

Preferred or preference shares in Thailand are usually higher ranking shares giving the holders priority in certain matters of the company limited. The structure of preference shares opposite ordinary shares in a Thai company is typically used to give control over certain matters or preference in certain situations to a group of shareholders above another group of shareholders in the company.

For now, Thailand has not changed the preference structure allowing foreigners as a minority shareholder to control a Thai limited company, however there is a discussion in the Thai government and Ministry of Commerce if preference shares and foreign voting rights and management in a Thai company should be used as a criterion in defining a company foreign or Thai. With new regulations the government is currently discouraging foreigners to invest in Thai businesses by restricting the use of Thai nominee shareholders in a partly foreign owned Thai company, however has not issued restrictions on the use of preference shares and majority voting rights by foreign shareholders in a Thai company.

It is not yet known if foreign voting rights and management in a Thai company will be used as a future criterion under the Foreign Business Act in defining a Thai company a foreign company.

Anti-government protests in Thailand have strangled businesses in the capital’s central shopping district for the past month. Five major department stores, 14 hotels and 30 bank branches in the heart of Bangkok have been forced to close for almost a month. And some foreign investors are thinking it may be time to pull out. Aela Callan reports. (Apr 30, 2010)

Find More Thai Business Articles

by Fuzzytek

Challenges of Doing Business in Thailand

Geographically, the country is at the centre of what was until the 1950s French Indo-China; however, the Thai people were never subjected to foreign colonial rule – a fact of which they are extremely proud.

Thai culture has been influenced and shaped by a number of diverse sources, such as Chinese culture and Buddhist and Hindu philosophies. This mix has led to a complex way of thinking which must be understood in order to interact successfully with the Thais. By completing a business management cross-cultural training programme such as Doing Business with Thailand, your organisation will be better equipped to form coherent strategies for profitable and enduring associations with counterparts in Thailand. Below are some of the major conceptual challenges to understanding Thai business culture and society.

The concept of saving face is important in Thai society.  Thais will do anything to prevent loss of face, including avoiding confrontation or telling others what they want to hear rather than dealing with immediate issues.  Criticising someone in public and not staying true to promises are various ways that people may be perceived to ‘lose face’ in Thailand.

]]>

Thailand is a collectivist society in which the needs of the group are often placed over those of the individual.  Family and community concerns will almost always be put above business or individual needs.  Family in particular plays an important role in Thai society.  You will notice that close ties between extended families and communities can have a major influence on individual behaviour in Thailand and often there are multiple generations living under one roof.

Being subtle and indirect are valued characteristics in Thai communication. In conversation, a considerable part of the information lies in underlying messages or in non-verbal cues. Thai people avoid direct confrontation, and criticism, if given at all, is delivered indirectly.

As the cornerstone of Thai society, the family is attributed great value and importance. Thai families are close and several generations may live in the same house, with the oldest male being the head of the household. The power structure of the family is mirrored in the organisational environment. Advice from elders is expected to be followed without question, although this is becoming less true with time and modernisation.

Thailand is a fascinating and complex country, influenced by centuries of religious philosophy, immigrant know-how and wisdom coming from foreign trade and commerce. This complexity can be hard to understand for the outsider in Thailand, and an obstacle to doing business. By enrolling members of your organisation on a cross-cultural training programme such as Doing Business in Thailand or Living and Working in Thailand, your organisation will be able to form strategies to cope with and manage interactions when doing business in Thailand.

by E8Club

Thai Visa Information

Well it is that time of year again, the high season is getting ready to start and many readers currently in their cubicles overseas are thinking of their time soon to be spent among the beautiful women and tropical beaches that Thailand is famous for.

Unfortunately, like Shangri-La, each year more obstacles seem to be placed in the path of those wishing to come back to the Kingdom. Most notable among these obstacles is the plethora of competing visa regulations being promulgated from the ordinance drafting machine that is Thai Immigration. To add confusion to complexity, many of the regional Consulates and Embassies are running things according to their own rules in a similar manner to the way a local chieftain runs his own fiefdom.

The rules get more complicated, but the game continues. Hopefully this will provide some insight for those looking to stay in the Kingdom for a long (or short) period of time.

Thailand Visa Exemption Stamps

First and foremost on the minds of short term travelers is the issue of Thailand visa exemptions. The visa exemption stamp is the 30 day stamp given to most tourists arriving at the Airport. Currently Thai Immigration is giving 30 day exemption stamps at the airport to anyone holding a passport from a country on the exemption list (US, UK, CA, most EU, AU, NZ, etc). Technically, these stamps are supposed to given an infinite number of times, provided the entrant is always coming through the airport. That being said, I have heard reports that this is not the case and more than about 3 entrances will get your passport heavily scrutinized (they can always turn you away as well).

At present, entrants seeking visa exemption stamps at land borders are being accorded a mere 15 days of lawful status. This is important to note because local immigration requires at least 21 days of status to process a visa extension or conversion. Therefore, the immigration officers have effectively barred long term status to those entering Thailand via a land border without a proper visa. If one wishes to remain in the Kingdom long term, then this is not an effective method.

Thailand Tourist Visas: Free If You Can Get One

After the less than spectacular tourist numbers last year, the Thai government announced a fee waiver for all Tourist visas sought abroad. This led to something of a backlash from Consulates overseas as the workload increased and the resources decreased. However, the plan seems to have had some positive effects as there has supposedly been an increase in tourist visa applications (possibly due to the fact that visa exemptions are now harder to come by).

Although initial tourist visa applications are being approved (if sometimes begrudgingly), subsequent applications are being viewed with a critical eye. The Royal Thai Consulate in Penang, the on-again off-again visa run destination for most farangs in Thailand has made the policy that they will not issue multiple tourist visas. This seems to be the prevailing attitude throughout the region, with some exceptions. As a consequence, those wishing to remain for a longer period than 3 months might be wise to seek out a non-immigrant visa rather than using exemptions or tourist visas.

The Rise of the Non-Immigrant Visa

It appears that non-immigrant visa applications are on the rise. Although tourist visas technically are classified as non-immigrant, for these purposes we are talking about B visas, O visas, and retirement visas. O visas are always popular with those staying in Thailand long term as they allow for 90 days per entry. Should one acquire a 1 year multiple entry visa, then it could be utilized 4 times for a duration of stay amounting to 90 days per entry. The Business visa is also popular for those who may be looking at making their vacation more full time by attempting to gain employment and applying for a work permit. Acquiring a Thai business visa can be a difficult task, particularly if one does not have company sponsorship, but it is a highly flexible visa from legal standpoint. Finally the retirement visa: perfect for those over 50 who can prove financial resources to cover their living expenses. The only major downside to this one is the fact that employment is prohibited, but in general it is much easier to obtain than some other categories. Those interested in possible employment should look at the Business visa.

In my opinion, the non-immigrant visa categories will become more popular as the border run is slowly phased out, but then again this time next year we could be talking about how no such visas get issued anymore. Long term status in Thailand can be hard to come by in Asia, so act accordingly if you are still back in your corner of the world because: prior planning prevents police detention.

by roarofthefour

Business and Company Registration in Thailand

In the Kingdom of Thailand, registration as well as conducting of business is governed by a number of laws. Some of the most popular forms of business set ups in Thailand are sole proprietorship, partnership business, joint ventures, branches of foreign companies, and limited companies including public limited companies and private limited companies.

A sole proprietorship is a kind of business set up that can be owned by only one person with unlimited liability. This type of set up is subject to certain kinds of legal actions. Unless included under the United States-Thailand Treaty on Amity and Economic Co-operation, a foreigner is not permitted to start a sole proprietorship business in Thailand.

When comes to partnership business, Thailand allows three types of business such as unregistered ordinary partnerships, registered ordinary partnerships, and limited partnerships. Since it is not promoted by the Board of Investment (BOI), partnership business is seldom operated by foreign investors.

A public limited company in Thailand offers shares for sale through the Stock Exchange of Thailand (SET.) But, a host of legal requirements must be complied with the Public Limited Company Act for starting a public limited company. For instance, half of the promoters must be Thai nationals and there must be at least 15 promoters for the Memorandum of Association.

Private limited companies are the most popular type of business set ups in Thailand. A foreigner can easily set up a private limited company. However, according to the Foreign Business Act, there are certain businesses that cannot be started by a foreigner on a majority basis.

]]>

Laws pertaining to the establishment of a private company in Thailand are governed by the Civil and Commercial Code, the Revenue Code, and the Accounts Act. Private limited companies are akin to western corporations and are regarded as one of the most prominent vehicles to set up a permanent business in the country. Establishment and registration of a private limited company involve certain important steps.

Foremost is the reservation of corporate name for your company. However, the name you have chosen or reserved for your company should not be same or similar to the corporate name of other companies. According to the law, certain names are not allowed as the company name. One can lean guidelines provided by the Commercial Registration Department in the Ministry of Commerce for reserving a company name. Filing of Memorandum of Association with the Commercial Registration Department is the next step in the incorporation of a private company.

Memorandum of Association must include the company’s reserved name, location of the company, business goals, share capital amount as well as how it is divided, and names of seven promoters who sign this document. Once the Memorandum of Association is registered, a government fee of about 0.5% of the registered capital must be paid. Then, a statutory meeting of all shareholders must be convened, in which the bylaws as well as articles of incorporation are approved and the board of directors and auditors are selected.

After this, the directors must file their application for the establishment of the company, within 90 days from the date of the statutory meeting. When the application is filed, a government fee of Thai 5,000 baht, which may go up to a maximum of 250,000 baht, must be paid. It is mandatory that within 60 days of the incorporation of the company should register for income tax and receive a tax ID card and a number for the company from the Department of Revenue.

Above all, once the company is incorporated and has successfully started its operation, it is required to maintain accurate books of accounts as per the Accounts Act, the Civil and Commercial Code and the Revenue Code. Accounting documents can be prepared in any language, however with a Thai translation.

Company formation and registration in Thailand offer some obvious benefits. One of the prime advantages is that the law does not entail any minimum capital requirement for establishing a business set up. Another benefit is that the Board of Investment (BOI) of the country renders a multitude of incentives to promote and encourage company formation in Thailand. As it is a founder member of the ASEAN (Association of Southeast Asian Nations), the country provides access to a prospective ASEAN market.

A myriad of specialist consultancy firm coupled with the services of attorneys are in the scenario to help you with the processes involved in company incorporation and registration in Thailand. They help you deal with a number of activities pertaining to the registration of company such as selection of appropriate company name, financial consulting, legal consulting, drafting company by-laws and business objectives, preparation and filing of the Memorandum of Association, registering Corporate Tax and VAT, creating company logos and seals, and more.

by mobile247

How to Find a Great Thai Massage Operator – Five Easy Tips

Never tried a thai massage, but keen to give it a go?  For sure, if you want a deep relaxation therapy, a traditional thai massage can help soothe your aches and stress, and more importantly, help you escape from your daily grind at home and from work.  Below are 5 simple ways to help you find a good thai massage business-

1. Visit a few Thai Massage places – let’s fact it, if it is your first time, you want your thai massage to be great.  Hence, visit a few of the businesses and see if it suits your expectation or requirements.  Whilst you are there, ask questions and see if the place are clean.  This is an opportunity to monitor the customer service level and find out about the range of services that are available.  As well, make sure the business is fully licensed.

2. Aside from asking the obvious question like fees, one of the big question you should ask is – are their therapists or masseurs qualified and trained to provide a traditional thai massage.  If they are not qualified, then this is not the company for you, and if they flirt with their answer, think twice.  You want your experience to be great, not stressful.

]]>

3. Don’t stick to 1 business.  Instead shop around for the best value and the best service that will suit your liking.  If one business happens to be more expensive or cheaper, inquire about it. You might discover that they are offering more value or simply under quoted their offer.  If they do offer more value, then it is worth paying slightly more for a great experience.  But always stick to your budget!

4. Switch on your computer and start your research.  With resources like Google places, Yelp and other local directories, it is easy to find more details about the company, and find candid feed backs about the service.  The customer reviews are a leading indicator of how the business service their clients.  So take note of those comments carefully.

5. Ask your friends, relatives and people you know who may have tried the service.  Their experience are a good source of information, and tips.  Nothing beats references from people you trust.

The above tips are just some of the ways you can find a good Thai massage service. All you need to do – research, research and research.  It is only through researching that you can find a professional massage therapy, and one that can help you really relax and de-stress from your busy work.

by E8Club

Doing Business in Thailand – The Benefits

Doing business in Thailand will offer your organisation many advantages.  Some of the benefits of doing business in Thailand include the following.

Thai society, and in particular the business community, is very welcoming to foreign investment and companies wishing to establish operations in the country. Organisations doing business in Thailand will find the infrastructure and systems ready for them to begin operating successfully.

Thailand has a large and very active manufacturing sector producing a diverse array of goods including toys, fish products, rubber, furniture and jewellery. These strengths in manufacturing and FMCGs have led Thailand to become a regional leader in trade and commerce (Travel Document Systems).

The Thai government is a forward-thinking and innovative body which actively encourages development and socioeconomic advancement. Foreign investment, both financial and in the local workforce, is strongly encouraged by the Thai authorities and the government’s policies over the last decade have made for a more inviting environment for foreign businesses and organisations.

]]>

Thailand has a large and adaptable workforce. With literacy rates reaching 94% for men and 90% for women (Thailand Board of Investment), foreign investors will find an intelligent workforce with the potential for further development. In addition to being flexible and educated, the Thai workforce is also among the most cost-efficient in the region in terms of pay with the average daily wage for Bangkok being 203 THB (approximately US).

Thailand is a hospitable, friendly and rapidly developing nation in which there is the opportunity to establish long lasting and strong commercial and financial bonds. Thai culture is rich in tradition and history, and Thai people have integrity and a powerful desire to succeed. A regional centre for trade and manufacturing, with democracy interwoven into the fabric of its society, Thailand has become a very attractive location for doing business.

To maximise your organisation’s chances of successfully doing business in Thailand, you should consider a cultural awareness programme such as Doing Business in Thailand or Living and Working in Thailand. Having completed one of these programmes, your organisation and its employees will be able to form strong strategies to help overcome any cultural pitfalls or challenges.

by avlxyz

Thai Work Permit Rule Changes And The Thai Visa Extension

Thai work permit rules may soon be revised. This article looks at the possible impact these changes will have upon the visa extension process.

There are many administrative rules, regulations, and procedures that are involved when discussing a Thai business visa extension. This is caused by the fact that many Thai government agencies have varying degrees of jurisdiction over different aspect of the Thai Immigration and work permit process. In the weeks leading up to the writing of this article there has been discussion regarding the implementation of new Thai work permit rules. In many ways, the revisions made to the Thai work permit rules can have an impact upon business decisions made by foreign citizens working, residing, and doing business in the Kingdom of Thailand.

The current work permit rule changes are connected to discussions about the liberalization of the Thai Foreign Business Act which precludes foreign nationals, or companies owned primarily by foreign nationals, from undertaking certain types of business activity in the Kingdom of Thailand. Even though a draft of this legislation has not been promulgated at the time of this writing, talk of this impending liberalization makes it sound as if these changes are coming very soon. Correlative to the relaxation of the rules which underlie the Foreign Business Act is the tightening up of the rules regarding foreigners who are employed in the Kingdom of Thailand.

Changes in Thai work permit rules could possibly have an effect on business visa extensions as these two official documents are linked insofar as a person must first obtain a work permit extension before they can obtain a Thai business visa extension. In most cases, a foreign Citizen enters the Kingdom of Thailand on a single entry 90 day business visa. The foreign national who decides to register a Thai company can then extend this Thai visa for one year provided they obtain a properly issued Thai work permit to work for the company.

There was a time when it was possible for small and medium sized companies to use the “One Stop” visa and work permit service so that the whole work permit and visa extension process could be completed at the same time. At the time, of this writing usage of the “One Stop” service has been effectively prohibited for smaller businesses, but expedited visa extensions similar to those provided by “One Stop” could be enjoyed by Thai Board of Investment Companies as well as companies with a high registered capital.

For those who opt to use a long term multiple entry Thai visa as the basis for presence in the Kingdom of Thailand, the issue of visa extension is a less pressing concern, but a multiple entry visa requires the bearer to leave the Kingdom of Thailand at least once every 90 days.

by cizauskas

Setting up a business inside Thailand

Numerous foreigners nowadays may want to start up and also expand their internet business in Thailand. Starting an online business in a foreign country may be both a rewarding opportunity and a daunting task. You can find One Stop Service Centers that provide business services to assist foreigners set up a company in Thailand. The Thai authorities has made great improvement during the last few years to increase the process involving business registration in Thailand. A Thai Company may be registered in one particular business day after receiving a confirmation with the name reservation of the Thai limited business.

Fresh businesses both large and small can setup in Thailand with ease. For a compact new Thai business you are able to easily register your current new Thai limited company which has a minimum capitalization associated with 2 million baht. The Thai govt requires that a minimum of 25 percent with the starting capitalization be paid on the date with the meeting for business registration. This start up capital may be used immediately for company rental, buying personal computers, purchasing inventory and also other business expenses. As for big businesses, Thai government includes their Board connected with Investment (BOI) program for offering special sectors benefits for choosing Thailand as their begin location. This can incorporate small software developers with a few people to significant manufacturing operation. This incentives include duty holidays, reduce tax duties on imported machines, fast canning of work enables and visas intended for foreign staff, and in many cases as tax free of charge zones for importing raw materials that will be used and exported as a finished product (for quite a few designated sectors).

The ownership percentage of one’s Thai company depends on the kind of business registration you process with all the Thai government. Probably the most common type of registration is the Thai Limited Organization with 2 trillion baht required primary capitalization. A foreigner can only support to 49 percent belonging to the shares in this type of structure. Thus, the Thai partners need 51 percent. The BOI business structure offers the option of 100 percent ownership in certain business categories. It is strongly recommended that you make contact with a Thai organization incorporation lawyer to assist you in the planning of your new business in Thailand.

Related Thai Business Articles