How
much start-up capital is required?
Capital required is dependent on the needs of the business.
Statutory minimum capital is very little. Statutory minimum
capital requirements are five baht per share. In general
the lowest capitalization normally generally seen is 100,000
baht. However, a majority foreign owned company (or a
company sponsoring a foreigner's work permit) requires
a minimum of 2,000,000 baht capital. When determining
the practical amount of capital necessary for starting
a business all costs need to be considered: leases for
office and warehouse space, utility and housing costs,
staff salaries, etc.
Are
there companies that supply Thai shareholders?
Yes, there are companies that supply Thai shareholders.
However, it is best to find your own shareholders. This
can be done through organizations that specialize in linking
Thai investors and foreigners together. Often embassies'
commercial services and chambers of commerce may assist.
What
is a "nominal" shareholder?
Nominal shareholders are individuals who act as a "straw
men"; they are shareholders in name only. Typically,
they are given shares of a business so that they own 51%
or more of that business, but they do not act as functioning
shareholders.
Why
is it illegal to use Thai individuals as "nominal"
shareholders?
The Foreign Business Act expressly prohibits Thai citizens
from acting as "nominee" shareholders.
Does
owning a registered business in Thailand as either a shareholder
or director entitle a foreigner to stay and work in Thailand?
No. A foreigner who is a shareholder or director of a
limited company in Thailand must still apply for a non-immigrant
visa and a work permit to be allowed to stay and work
in Thailand.
Does
owning a registered business in Thailand as either a shareholder
or director entitle a foreigner to stay and work in Thailand?
No. A foreigner who is a shareholder or director of a
limited company in Thailand must still apply for a non-immigrant
visa and a work permit to be allowed to stay and work
in Thailand.
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