Sunbelt Asia Weekly Column
27 July 2018
We at Sunbelt Asia read the recent emergency degree and felt that it seemed that Thai – American Amity Treaty Company directors would not need a work permit. We then double checked with the Ministry of Labour in Bangkok and they agreed that American directors with a Thai- American Amity Treaty Company or Sole Proprietorship would not need a work permit. This means that the company would not need to be VAT registered unless sales were higher than 1.8 million baht in a year. Additionally, this means the company would not have any Thai employee requirements and would not be required to have registered capital of 2 million baht.
According to the Ministry of Labour, a business registered under the Foreign Business Operations Act under the U.S.-Thai Treaty of Amity and Economic Relations of 1833 (referred to as a Thai-American Amity Treaty Company) falls under the aegis of foreign business operations as per the “Amendment to the Emergency Decree on Managing of Foreigners B.E. 2560” promulgated under Article 44;
The Emergency Decree on Managing of Foreigners B.E. 2560 defines work as “an engagement of any profession, with or without employer but excluding business operation of a licensee under the law governing foreign business operation.” (Section 5 of the amended Decree). “Licensee” refers to business operations that have been granted a license under the Foreign Business Operation Act.
According to Section 4 of the Amendment of the Emergency Decree, the following types of duties and work activities no longer require a work permit:
Persons who enter Thailand periodically to hold or attend a meeting, a lecture, a demonstration at a meeting, express an opinion, attend a training, a work inspection, (or a seminar etc.) according to the period and conditions prescribed by the Council of Ministers;
Persons who enter Thailand to operate a business or to make investments or who have knowledge, ability or highly developed skills, which would be beneficial to the development of Thailand, as prescribed by the Council of Ministers;
Representatives of a foreign juristic person licensed to operate a business under the law governing foreign business operations.
To obtain a non-B visa for 90 days in neighboring countries you need to show a WP3, this is the application for a work permit granted by the Labour Department. If you need a multiple entry, certain countries such as the Thai Embassy in Malaysia, will give you a non-B with a copy of your work permit. They seem to not have received the memo as they insist you must have a work permit even if you are a representative of a Thai-American Amity Treaty Company.
However, in the USA it seems to be a different story; an American should be able to obtain a multiple entry non-B visa in the United States with their Thai-American Amity Treaty company paperwork and will not need a work permit to run the business in Thailand.
Those who already hold a visa that allows for one-year extensions (by reasons of marriage, investment, or Elite visa) are able to manage their Thai-American Amity treaty companies without a work permit.
Those who do not require a work permit will still be required to pay personal income tax; if a corporation then you are paid a salary and you pay personal income tax on that. If you have a Sole Proprietorship, then you pay a percentage of your income if you use the standard fixed deduction. If you use expenses with receipts, then it’s the personal income tax on your net profit.
Sunbelt Asia, as a Thai-American Amity Treaty company, is well-versed in the registration of such companies and can assist you in this process, please contact us at email@example.com.
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Please feel free to contact us if you are in Thailand on (+66) 02-662-7004 to discuss any of these listings.
Healthy beverage business with shops & online presence
Taking advantage of the healthy lifestyle market, this business offers vitamin water enhancers in 18 small retail shops as well as in major e-tailers like Lazada and Shoppee. The company has also been involved in marketing the business widely at booths and other events and has received great feedback from customers.
The business was established in 2016 and has two full time and three part-time employees with a total monthly payroll of 18,000 baht. The business is in a 200 sqm space with a monthly rent of 14,000 baht.
The owners found themselves stretched after such a rapid expansion and are selling as they find they do not have enough capital to expand into the supermarkets and hypermarkets despite having the connections and interest. With the right backing this product could be quite successful. The sellers are willing to support the new owners after the sale.
ASKING PRICE: 6 million baht
Luxury executive apartments in prime Thonglor neighborhood with land
A rare find in the popular Thonglor neighborhood, this luxury low-rise executive apartment is located on 209 sq wah of prime land in a top location in this very desirable neighborhood.
With 12 units over 8 floors, this newly renovated building offers guests an amazing two units per floor. There are ten units of 220sqm and two units with 250sqm. Each one has recently been renovated to a high-quality standard, there is a roof-top play are for children, a swimming pool, fully fitted out fitness center, parking, a tuk-tuk service to the BTS, and full security including CCTV and fire safety systems.
This building has been popular with top level executives, embassy personnel and other discerning families. It is one of the few pet-friendly buildings in the area and with its recent top quality renovations is ready for tenants.
The sale includes the 8-story building and the 209 sq wah of land, a rare find in this extremely popular and trendy neighborhood.
ASKING PRICE: 250 million baht
New price on Korean dessert cafe in key Siam Square location
Price drop on this well-known Korean dessert franchise in an outstanding Siam Square location. While the business has only been open six months the owner is selling as he doesn’t have the time to manage this and his main business. The owner spent over 8 million baht in setting up the business including all decor and fixtures and fittings but is selling for the lease, franchise, and all fixtures and fittings for ony 4 million baht. The owner is also willing to sell just the lease and the assets.
The 60 sqm location seats 42 with a monthly rental of 210,000 baht on a 3 year lease. There are four full time and two part time employees with a total payroll of 60,000 baht a month. The asking price includes the lease deposit so the new owner can walk into a turnkey business.
ASKING PRICE: 3 million baht – includes franchise and lease deposit
Well-reviewed Sukhumvit restaurant on busy soi
This restaurant and bar is in a great location on Sukhumvit soi 31, a busy soi with many hotels and guesthouses and has earned a great reputation for its food and ambiance, even winning a restaurant award in 2015.
The restaurant has 200 sqm and a good rental price of only 45,000 baht a month. There are 7 full time and 7 part time staff with a total monthly salary of 145,000 baht. Annual sales are around 12-14 million baht and the business made a net profit of 4.6 million baht last year.
The owner is selling the business as he has no time to manage it.
ASKING PRICE: 6.5 million baht
Well-reviewed Sukhumvit restaurant in price drop
This restaurant, located in a busy Sukhumvit soi has had a price drop as the owner is keen to sell. The restaurant is well-reviewed on Trip Advisor and has garnered good word of mouth with locals, expats, and tourists. The owner is looking to sell the brand, equipment, and will train the new owner in all recipes.
There are six service staff and six kitchen staff including the chef, who will stay on to work for the new owner. The 200sqm restaurant can seat up to 60 people and rent on the space is 200,000 baht a month. The current owner has a 3 + 3 year lease that expires in 2019. There is a parking area available as well. The restaurant has room for an office and an area with lockers for the staff. The fully fitted out kitchen is designed to cook both western and Thai food.
Sales last year reached around 12 million baht with a profit of around 30 percent. The owner is looking to sell as he travels for his overseas business too often to manage the business.
ASKING PRICE: 5.5 million baht
Long-running Rayong construction company with land
This long-established fabrication and construction company has been in business for 20 years and is a specialist in the energy field. The factory is in Rayong and has a total area of 24,000 sqm. This ISO 9001/2008 certified company has a registered capital of 30 million baht and has long established contacts and concessions in the business.
The owner is retiring and so is selling this business which also includes the land the factory is on.
ASKING PRICE: 130 million baht
Well-known online healthy foods e-business
This online health food store is one of the most well-known in Thailand and has earned a good reputation for providing high quality superfoods, and raw and organic foods and products with delivery around the country and worldwide. The website is quite extensive and has a great modern design with built in check out system and secure payment.
This business has huge potential growth as the health food industry takes off in Thailand. The new owners can run the business from their current location with no need to relocate since it all takes place online. The company has been in business for four years and the current owners expanded it and updated the website after taking ownership one and a half years ago.
The owners wish to sell for family reasons.
ASKING PRICE: 1.85 million baht
Phang Nga resort complex with 44 rai of land
Located in the popular and growing tourist destination of Phang Nga on the Andaman Coast, this resort complex is set on 44 rai of land, of which only 3 rai have seen development, making this a tremendous opportunity to grow this business.
Currently there are three buildings on the property but the opportunities for villas, hotels commercial offices or condominiums is available. The business offers accommodation and a restaurant along with adventure activities, a popular tourist activity. Hosting events such as conventions and weddings has been a major source of income along with leisure tourists.
There are 40 full time and 10 part time employees with a monthly payroll of 500,000 baht. The property includes 44 rai of chanote land not far from the airport. Annual sales have reached 20 million since its inception in 2015 and profit reached 3 million per year.
The owner wishes to retire and so is seeking to sell this development with great potential.
ASKING PRICE: 375 million baht