OP
Also, what type of company do I need to set up to be legal to freelance ? Normally Thai work permits enable you to wotk for one company, no ?
Working in Phuket.......
- Thread starter Bubble Junky
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stevenl
Contributor
Yes, so your company has to be a diving company.
It will almost certainly be a limited company with the permitted activities of the company and its employees set out in the articles of incorporation. Thus, you will have to provide copies of your professional credentials to teach scuba. When you work as a freelancer, your company invoices the company that subcontracts you for services rendered. That way, you can work for any number of companies as a freelancer.
BTW, there's no need for a freelancer to have the company registered for VAT at all.
funrecdiver
Contributor
Hi Bubby Junky,
Having owed a few Thai companies and held three different work permits, let me help you out, if I may:
(1) You can set up any type of legal Thai entity to be a dive instructor, as long as your company registration papers mention the type of work you are doing. For example, my company charter is so broad that I can do anything from IT security to diving instruction (except for a handful or prohibited things, like rice farming, which I feel bad about, not being able to do that
). The charter paragraph of "we will do this type of business" is one entire page long. This is how many companies are set up, and it is perfectly legal. Thai agencies are good at this. So do not set up your company to be so narrow, as it is not required and buys you nothing special. You can also amend this charter, geographic location, entity name, no big deal.(2) If you are not working in your own legal Thai entity, you can work for many companies but you will need a permit for each company. My "work permit book" held three different companies, and two at one time. If you work for Company A with a valid permit, and then you want to work for Company B at the same time, when Company B files the paperwork, the government can issue that permit in the same book. If you have a valid company, then you don't need multiple work permits, of course. I think this is the way you said you wanted to go.
(3) Company set up depends on nationality. If you are an American, you can set up a company under the US-Thai Treaty of Amity which permits full company ownership, 100% in your name. I own such a company. People of other nationalities do not have such a relationship and are required to form companies with Thai stockholders, partners, generally speaking; however, there are certainly exceptions I don't know about. Either way is OK. I like having "my company 100%", but that is personal preference.
(4) When you own a company in Thailand you have filing requirements that are different than your home country, generally speaking. So, you will have a number of annual (and quarterly) fees like audit fees, accounting fees, etc. This can be costly if you are not generating income. Even shelf companies in Thailand need to pay quite a lot of fees, unfortunately.
(5) To have a work permit as a foreigner, your company must pay tax on a minimum amount of income per month (based on nationality), so even if you are not making any money yet, you will have to pay tax each month on "phantom income" to meet work permit requirements. Thailand has a system designed to get your money, one way or the other.
I am semi-retired and do not work in Thailand anymore. If you are a US citizen, I could sell you my registered company with full treaty rights and you could easily work as a dive instructor under that company, with full ownership rights, for less than what it cost me to set it up. You could change the name for a nominal fee. You could amend the charter as well. All is done via an agency who manages things. They do a good job.
Of course, you are more-than-likely not a US citizen, so the additional setup cost of owning a treaty company would not benefit you. Company setup for non-US citizens are easy as well; but the stock allocation and company director requirements are different. Again, I prefer "100% ownership", but that is just me and since I can.. why not?!
I wish you were a US citizen
smile, as I would like to sell this company (at set up cost only) and use the money to go buy some new gear!!! I don't need (want is a better word) to pay annual fees to keep it going since I don't use it. I could also advise you, as needed, for free, as a favor to a fellow diver, based on my experience with work permits and companies in Thailand.
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OP
Cheers, 'funrecdiver', but I am not a US citizen......
funrecdiver
Contributor
No worries, I am not a very good scuba diver either, so there are two strikes against me already
Hi funrecdiver,
I PMed you about the possibility of purchasing your company. I love Phuket, and can't wait to return. You are absolutely right about the Thai system designed to take your money, but I guess that's part of the price of living/working in a paradise!
funrecdiver
Contributor
Thanks! I prefer the "living" part over the "working" part these days.
... will respond to your PM after the weekend slack water diving, or earlier if we get blown off the water today by the 100% overcast sky today.
OP
Same in any other country tho'.......
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