subject: 2008 New Visa Regulationsand How to Get (The Most)Out of Your Business [print this page] 2008 New Visa Regulationsand How to Get (The Most)Out of Your Business
2008 New Visa Regulations
The Immigration Bureau have recently announced new visa regulations in accordance with the Orders of the Royal Thai Police Headquarter Nos. 777/2551 and 778/2551 which now have been effective since 25 November 2008. Accordingly, the Order No. 606/2549 has been repealed.
In accordance with these new regulations, the requirements for a Company to have a positive shareholders equity of at least THB 1 million and a level of revenue that will meet all of the Company's annual expenses, inclusive of the expatriate(s) and Thai employees' salaries, have been removed. The Bureau will now consider movements in cash, assets, inventory and liabilities in the balance sheet and the statements of income over the last two financial years to determine, with certainty, that the Company is operating a legitimate business.
In addition, there must be a clear audit opinion or at least an opinion which does not contain a "Going Concern" qualification and the notes to the accounts should not state that the Company is a "non-operating company".
To determine compliance with these new requirements, the Immigration Bureau require that the annual statutory returns to the Department of Business Development, Ministry of Commerce (forms reference Sor Bor Chor 3 and 3/1), VAT returns (form reference PP 30 and/or PP 36), personal income tax returns (form reference PND 1) and Social Security Contributions Returns (form reference SPS 1-10) for the last three months are submitted together with the visa application forms as supporting documents.
The new order also permits an expatriate who wishes to invest an amount of at least THB 10 million (or not less than THB 3 million for an expatriate who has been granted an investment visa prior to 1 October 2006) to apply for an investment visa. This investment may be completed in three different ways purchase or lease of a condominium (which must be held for a period of at least three years), a fixed deposit with a Thai bank(s) and/or Government or State Enterprise Bond(s).
A further provision is that the restriction on tourist visas which stipulated that the length of stay in Thailand must not exceed 90 days within a six month period has been cancelled. As a result, foreign nationals who enter Thailand for tourism related purposes are now permitted to remain in the Kingdom for more than 180 days in a year, although there is still a restriction that limits any one stay to no more than 90 consecutive days. In addition, foreign nationals who enter Thailand via a neighbouring country will only be granted a stay of 15 days unless they are in possession of a valid Thai visa, with the exception of foreigners entering from Malaysia who will still be granted a stay of 30 days.
In conclusion, the Immigration Bureau have implemented more practical regulations which should prove to be more convenient to genuine foreign investors who wish to reside in Thailand.
How to Get (The Most) Out of Your Business
GETTING INTO BUSINESS is not difficult, even if you do have to make some serious decisions and commit some capital and effort.
Making it in business is a bit more difficult because so many businesses fail in the early years. However, getting out, moving on, and riding off into the sunset can be the most stressful and costly phase of all.
This is a typical business cycle. Most owners tend to sell at point D. However, with a little planning, selling at an earlier point, say point C, would be less stressful and much more profitable. Most owners overvalue their businesses, and, if sale proceeds are a big part of expected retirement capital planning, they are heading for a major disappointment.
To get the best price, you need to groom your business for resale. This way, you will lock in the value and maximise the return for all your time and effort over the years. Developing your business for resale can mean significant dollars for you. Like most things, this will need some investment, but each resulting extra dollar of profit may mean three or more extra dollars in additional sale price. The bottom line is that you can lock in huge value by proper planning and prudent expenditure. The trends say don't delay.
The Baby Boomers' are going to be selling their businesses soon, business owners are ageing, the work force is maturing and buyers will be fewer in numbers. A business broker once said that 90% of business owners who approach him have unsaleable businesses, which he won't handle, in their present states. Too many owners are their businesses and who would buy a business without the main asset? Or where the main asset will leave in six months?
Succession planning applies to YOU as it does to all business owners. Who should you approach and who should be involved? Your accountant is ideally placed to orchestrate the service providers including lawyers, IT people, bankers, financial planners, business brokers etc. Here is the strong message. Get it right and you maximise the dollars and ease the stress of retirement. Get it wrong and you will find that the lost opportunity brings the converse.
You should set yourself a timeframe with your accountant, who will show you the steps you need to take to make this a success. This should henceforth be part of all your business planning. Call us. We help people get into business, help them stay in business and then help them get out successfully.
