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Can a person with a retirement visa open a business in Thailand, and what are the ownership conditions?

retired visa Thailand business ownership visa regulations expat business foreign ownership in Thailand Thai business law

Dec 19, 2022

3 years ago

Vaner *******

ORIGINAL POSTER

Hi Everybody

Can a person with a retired visa open a business in Taylan? 

 If so, what are the conditions? 

 I heard that 49% of a business opened should be owned by you and 51% by a Thai person?  

If this is true, is the 51% Thai share divisible by 3 or 4?

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TLDR : Answer Summary

A person on a retirement visa in Thailand is not allowed to work, which raises questions about their ability to open a business. According to the comments, while a foreigner can own 49% of a business, there are significant considerations regarding the Thai ownership of 51%. It's suggested that having multiple Thai partners might help distribute control more effectively rather than having a single partner with majority ownership.

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Russell *******

I can't get my head around why anyone would open a business with 51 percent controlled by people you don't even know. Do you just send them 51 percent of the profits each as well as a monthly salary ?

3 years ago

Jorge ****

@Russell ******

some guy mentioned when he wants something done, he pays his maid to sign docs as she is one of the "partners". The other signatory is another aquaintance and these two do not know each other. They draw no salary nor collect profits, only sign docs. The full value of the investment comes from the guy who "owns" 49%. The other partners invest nothing. Only sign for a small fee.

3 years ago

Russell *******

@Jorge ***

sounds like it would be more profitable to open a business in home country and employ and manager with share of profit . But I guess it works for some and many are probably more into remaining in Thailand. I guess 😃

3 years ago

Jorge ****

@Russell ******

you got it! Many people like it here, want to stay, and also want to "own". The benefit is that the land they buy sells for more than the cost.

3 years ago

Russell *******

@Jorge ***

ok if you buy land of property it probably works. Starting to understand now. 🙏

3 years ago

Reply to

Russell *******

@Jorge ***

so what is the point in it ? If the others aren't involved you basically have it all to yourself .

3 years ago

Jorge ****

@Russell ******

well, that is the purpose. Picture this: the 2 or more who, on paper "own" the 51%, want to sell the buss that you have funded 100%. Since you are a minority holder, they leave you holding the bag. This is, of course, if they can get together and talk about it. Mostly this "business" is setup as an offshore company so it could buy land normally forbidden to foreign nationals. You would then control it, not them. An old trick by now and even the government, on occassion, threatens to stop this practice. Chinese, Indians, Europeans, and others, have lots of investments here using business companies as front. Clever.

3 years ago

Russell *******

@Jorge ***

but it must be easy for them to do that as there contact details must be on the company information ? I guess you just live in hope they don't interfere. All sounds so complex and what do the government achieve from the business funds going to a foreigner, just tax ?

3 years ago

Jorge ****

@Russell ******

sorry, cannot comment about what details are in the company info, after all, it is private, and the other two "nominees" each hold less than 51%. This type of business does not generate funds. It is a front. On the other hand, many foriegn companies set up businesses. They have to be blessed by the Board of Investment, BOI, get all the permits, drop money on the co., and hire a few locals. There have to be a minimum of them before a work permit can be issued to a foreigner. It can be done. There are many multi-national companies doing buss here but it takes $$$. I used to know a guy who ran a sole proprietorship. He had to report income in excess of 50k/mo for tax purposes, and get a Non-O buss based visa every 3 moths. This allowed him a work permit. No visa extensions, and yes, visits to embassies outside the country ever 3 mo. Lots of leg work. That was >10 ago. YMMV.

3 years ago

Graham ******

@Russell ******

The point is a foreigner cannot legally own more than 49% of a Thai company so you have 51% of Thai "partners" to meet the requirements.

3 years ago

Russell *******

@Graham *****

do you think the government can ask the Thai parties to close the company ?

3 years ago

Reply to

Russell *******

Jorge ****

A person on a retirement based visa (or extension) is not allowed to work. Other commenters may advise on the ownership part. Have heard it is better to not have a single partner who owns 51% because then he/she has full control, but that it is better to have at least 2 partners who do not know each other to avoid them from ganging up on you and taking over. Majority is majority.

3 years ago

Ludwig ***********

You cannot work as an employee or volunteer on a retirement visa, but you can own a business.

3 years ago

Jorge ****

@Ludwig **********

that's what I thought but have never met such. Owning is not working. I have read that about 20+ years ago the police showed up at a bar and arrested (then deported) a foreigner bar owner for "working" at the bar he owned. Their argument was that he was there talking to customers and in their view, that was "work".

3 years ago

Reply to

Jorge ****

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What is the business partnership ratio for foreigners setting up a company in Thailand with a Thai spouse or partner?

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