Integrity Legal

Thai business visa rules can be confusing for some as those who are new to the Kingdom of Thailand can become confused by the Thai Immigration system. Even seasoned expatriates in Thailand have trouble keeping up with the constantly changing rules and administrative procedures. The reason for the confusion can at least be partially attributed to the fact that, like US immigration rules and regulations, there are two Thai government agencies with overlapping authority where Thai visa matters are concerned. The first agency is the Royal Thai Immigration Police who are similar to United States Immigration officials at the Department of Homeland Security in that they oversee the administration of Thai Immigration rules from inside the Kingdom. Then there is the Thai Ministry of Foreign Affairs. The Thai Ministry of Foreign Affairs, through Thai Embassies and Consulates abroad, is tasked with adjudicating visa applications outside of Thailand and when said visa applications are approved they are tasked with promulgating visas.

This brings us to the issue of Thai visa extensions. For many foreign nationals working in the Kingdom of Thailand a visa extension is necessary in order to remain in the Kingdom long term. Some opt to use multiple entry visas, but generally, these visas are not convenient for those who wish to remain uninterrupted or eventually apply for Thai Permanent Residence.

In recent months there has been some discussion among Thai government officers about tightening up the Ministry of Labour regulations regarding foreign workers. Apparently, new rules will go into effect in February 2010 which would make Thai work permit rules more stringent. This will likely have a collateral impact upon those seeking Thai visa extensions as work permit renewal is usually required by Thai Immigration before they will extend a Thai visa. At one time, the One Stop Service could be used by employees of companies with a high registered capital or BOI Companies. One Stop Service allowed foreigners to apply for both a work permit renewal and a visa extension at the same time.

However, One Stop’s jurisdiction has been significantly curtailed and the service itself is effectively non-existent for small businesses. Now, most foreigners wishing to renew their work permit and visa must do so by first making a trip to the Ministry of Labour and then traveling to the Royal Thai Immigration Police headquarters to extend the visa after work permit renewal. At this time, the process seems cumbersome, but there is some hope that the system will be streamlined so as to facilitate more efficient processing of work permits and visas.

Tags: BOI Company, Thai Business Visa, Thai permanent residence, Thai Visa, Thai Visa Extension, Thai Work Permit, Thailand Business Visa, Thailand Visa, Thailand visa extension, Thailand Work Permit
Posted in Thailand Business, Thailand Visa, Thailand company, Upcoming Legislation | No Comments »

In a recent announcement posted on Thaivisa.com one individual renewing his visa in Thailand was taken aback by the fact that a Royal Thai Immigration officer wanted to test his knowledge of Thai before a Thai visa extension would be granted. To quote the posting directly:

“[I]went to pattaya/jomtien immigration today with all my paperwork to extend my ed visa (callen & walen) for the next 3 months. [A]ll ok on desk number 5 then she pass’s my paperwork to a desk behind her and moves me. [T]he lady starts talking to me in [T]hai, then tells me they are now testing applicants from there 2nd renewal onwards , ie after 6 months on a ed visa. [S]he stated my [T]hai was not up to scratch and that if i did not pass on the next renewal [I] would have my application refused next time. [S]he made it very clear they were now cracking down on ed visa applicants, not surprising really [I] guess with all the signs appearing claiming 1-10 year ed visa’s freely available.”

In recent years Thai ED visas have become extremely popular amongst those who wish to remain in Thailand for a long period of time without resorting “visa runs.” Many have speculated whether these visas would continue to be promulgated as easily as they have been up until this point. One of the popular reasons for obtaining such visas is based upon the applicant’s enrollment in Thai language classes. Until recently, Thai proficiency examinations were not required in order for foreign nationals to remain in the Kingdom on ED visas, but as the above quotation points out, this is no longer the case as Thai immigration officers seem to increasingly demand that applicants for ED visa renewal show some sort of proficiency in the Thai language.

A Thai visa classified as “ED” can be a useful travel document for a student in Thailand, but they are not particularly useful for those who wish to obtain a Thai work permit. Under current Thai immigration and labor regulations it is very difficult to obtain a Thai work permit if the applicant is present in the Kingdom on an ED visa. In some limited cases it may be possible to obtain a work permit on an ED visa if the work is in connection with the applicant’s school. For those interested in working or owning a business in Thailand it may be wise to apply for a Thai business visa as this document can be used, in conjunction with other documentation, as a basis for submitting a work permit application.

Tags: ED Visa, Ed Visa Thailand, ED Vise Thai, Royal Thai Immigration, Thai Business Visa, Thai ED Visa, Thai Visa, Thai Visa Extension, Thai Work Permit, Thailand Business Visa, Thailand ED Visa, Thailand Immigration, Thailand Visa
Posted in Thailand Visa, Upcoming Legislation | No Comments »

Many long term expatriates in Thailand eventually begin to think about the possibility of applying for Thai Permanent Residence. As with many things in Thailand, acquiring Thailand Permanent Residence can be a very time consuming proposition and failure to maintain one’s Immigration status prior to the submission of a Permanent Residence application could result in major delays and frustration.

Although it can be somewhat simple to obtain a short term Thailand visa (Thai tourist visa, ED visa, etc), obtaining a long stay Thai visa can be extremely difficult in some situations. For many, obtaining a Thai business visa can be a daunting endeavor. Even more difficult is the visa extension process which requires a great deal of documentation for those who are seeking to extend a validly issued Thai business visa.  For those who are staying in Thailand on a visa that is based upon a relationship to a Thai national, the extension process generally requires less documentation, but does require a showing of financial sufficiency.

The reason the extension process is mentioned above is due to the fact that it has a critical impact upon the Permanent Residence application. Under current Thai Immigration regulations a foreign national in Thailand must have maintained at least 3 years of unbroken visa status in Thailand in order to be eligible for Permanent Residence. This means that the foreigner needs to have had 3 visa extensions with no “gaps” of unlawful presence.

Maintaining said status for three years can be a difficult task particularly for those who are employed by multiple companies. One in this position must make certain that their visa status remains unbroken despite changes of employment and/or visa sponsorship. For the self-employed who own their own Thai Company and use it to maintain a Thai visa and work permit, this is less of an issue. Even then, one should keep a close eye upon one’s visa status.

A common question with regard to Thai Permanent Residence and prior visa status involves the Thai Reentry Permit. A Thai reentry permit allows a foreigner to leave the country and return while still maintaining the same visa status. If a reentry permit is obtained then lawful status can be maintained and so long as it is maintained for 3 or more years the visa holder may apply for permanent residence in Thailand provided the other requirements are met. If a visa holder does not return to the Kingdom to maintain their status they will fall out of status and subsequently become ineligible for Permanent residence.

Tags: Thai Business Visa, Thai permanent residence, Thai Visa, Thai Visa Extension, Thailand Business Visa, Thailand Permanent Residence, Thailand Visa, Thailand visa extension
Posted in General Legal Information, Legal Opinion, Miscellaneous, Thailand Business, Thailand Visa | No Comments »

In Thailand, any foreign national who wishes to be employed in the Kingdom must first obtain a work permit. Any Thai company that wishes to employ a foreigner must first meet certain requirements before the Thai Ministry of Labour will issue a work permit to a foreign national. Most notable among the requirements: any company employing a foreigner must have at least 2 million baht in registered capital (There may be exceptions for those with Thai Permanent Residence or an O visa based upon marriage to a Thai national). For the most part, employees in Thailand will only have one employer. However, sometimes situations arise where a foreign worker wishes to take up a second job. In this case a second employer will need to be noted in the work permit booklet.

There is a common misconception that a Thai work permit allows a foreigner to work anywhere in any capacity within the Kingdom of Thailand. Unfortunately, this is not the case, the work permit simply allows the foreigner to be engaged in the specifically noted activity stipulated in the work permit. Further, the work permit only allows the foreigner to be employed at the place of employment noted in the work permit booklet. Therefore, the address of the employer could be inferred as the only location where the foreigner is eligible to work.

Should secondary employment be sought by the foreigner, then it may be possible have another employer noted in the foreigner’s work permit. However, the first employer must agree to have a second employer noted therein. Further, the activity specified in the permit must be in conformity with the employment restrictions in the Thai Foreign Business Act. This legislation restricts foreigners from engaging in certain business activities in the Kingdom of Thailand.

The addition of a second employer should not have an impact upon the foreign national’s visa status in the Kingdom provided the original employer continues to meet the Thai Immigration rules regarding requirements for sponsorship of a Thai visa extension. Basically, the foreign national will continue to maintain one visa (sponsored by the original employer), but will have two work authorizations (one for the original employer and another for the secondary employer).

In a case where the original employment is ending, but the foreign national wishes to continue to reside in the Kingdom and work for what had been his second employer, a new Thailand visa extension could be issued if the foreigner quickly petitions for such an extension (it usually must be within 7 days) and the secondary employer meets the requirements for sponsoring a Thai visa extension.

Tags: Thai Visa, Thai Visa Extension, Thai Work Permit, Thailand Business, Thailand company, Thailand Visa, Thailand visa extension, Work Permit, work permit Thailand
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There are many expatriates living in the Kingdom of Thailand who opt to run their own business(es). In cases where the expat is not married to a Thai national, then it is highly likely that a Thai business visa will be used in order to remain in the Kingdom long term. A somewhat tongue-in-cheek question that often arises in the context of Thai business is: why do I need to pay my taxes? Although no one actually expects to be granted some sort of tax amnesty, the fact remains that no one really relishes paying taxes. It can be even more difficult when one takes into account the fact that Thailand is predominantly a cash based economy. However, for expats basing their visa status upon small business ownership in the Kingdom, visas and taxes are inexorably linked.

Each year, each and every limited company in Thailand must submit an up-to-date balance sheet reflecting the profits and losses for the previous fiscal year. The managing director of a Thai limited company can do themselves a great disservice by failing to submit a yearly balance sheet as this can be punishable by strict sanctions and fines. Thailand, like many nations, imposes a corporate tax upon nearly all legal entities operating within the jurisdiction of the Kingdom of Thailand.  Further a corporate witholding tax is required for certain transactions.

In Thailand, the most well known method of taxation is the Value Added Tax (aka VAT). The government places a value added tax of seven percent upon most goods and services. The consequences for a business that fails to pay these taxes can be severe.

The reader is likely asking themselves: “Ok, I understand, Thailand has taxes, but how does this effect my Thai visa?” One of the major concerns of Thai Immigration officers is that those present in the Kingdom of Thailand on a business visa will use a “shell company,” in order to maintain Business visa status. In order to forestall such chicanery, Thai Immigration routinely looks at the tax records of companies that employ foreigners. This mostly occurs when the foreign national attempts to obtain a visa extension or a visa extension renewal. This type of scrutiny can also occur at the Ministry of Labour when a foreigner submits an application for an extension of his or her Thai work permit. In cases such as this, it is always better to have a good record of tax payment as this can greatly facilitate the quick issuance of a Thai visa or work permit.

Tags: Thai VAT, Thai Visa, Thai Visa Extension, Thailand Immigration, Thailand taxes, Thailand VAT, Thailand Visa, Thailand Work Permit, VAT
Posted in General Legal Information, Legal Opinion, Miscellaneous, Thailand Business, Thailand Visa | No Comments »

The popular Website Thaivisa.com and the Nation Newspaper are reporting on the news that There is a planned expansion of Thailand’s current international airport. To quote the article:

“Airports of Thailand plans to build a domestic passenger terminal at Suvarnabhumi Airport while inviting the private sector to invest in six projects at the old Don Mueang Airport. Construction of the new terminal will start in 2012 for completion in 2015, to accommodate an additional 20 million passengers a year.”

A question upon the lips of many who read this blog is likely: “What about Getting a Reentry Permit at the airport?” Although these two subjects seem only tenuously related, they may in fact be more related than it appears at first glance.

Up until January 1, 2009 it was possible for long term residents of Thailand to obtain a Reentry Permit at the airport. This is an important stamp to obtain for those present in the Kingdom on a Thai visa extension. When one enters the country on a Thai visa, the visa has a set validity. However, it is possible to have one’s visa extended past the visa’s initial validity. Once obtained this instrument is known as a visa extension. However, the extension does not explicitly permit the bearer to leave the country and return while simultaneously remaining in status. Therefore, it may be necessary to acquire a Reentry permit so that one may leave the Kingdom and return while maintaining the same visa status.

There used to be a Royal Thai Immigration Office at Suvarnabhumi Airport that issued Reentry permits to travelers immediately before they left the country. As could be reasonably assumed, this office was very convenient for those leaving Thailand and wishing to return in status. However, for some unknown reason, this office was closed and currently it is not possible to get a Royal Thai Immigration extension issued at the airport. Those wishing to get a reentry permit must do so at another Thai Immigration office.

Hopefully, with the addition of a new terminal, the increased space at the airport may make it possible to reopen an Immigration office in order to facilitate the issuance of reentry permits. This being said, there appears to be no plan in place for opening any new Immigration offices at the airport.

It should be reiterated that anyone staying in Thailand on a visa extension should obtain a reentry permit before they depart from the Kingdom in order to forestall falling out of lawful visa status upon departure. Those present in the Kingdom on a multiple entry visa can depart and return to the Kingdom until the end of their visa’s validity.

For related information please see Thailand business visa

Tags: Reentry Permit, Thai Visa, Thai Visa Extension, Thailand Business Visa, Thailand Immigration, Thailand Visa
Posted in Thailand Business | No Comments »

For the most part issues involving Thailand Business Visas can be broken don into three categories: Thai Visa Extensions, Thai Multiple Entry One Year Visas, and Thai Permanent Residence.

The Thai Multiple Entry One Year Business Visa

A multiple entry business visa is a long term visa that allows the holder the right to remain in Thailand for a period of up to 90 days per entry, but the visas validity is for 1 year. This means that one must make the obligatory “border run” e very 90 days in order to stay in status. A border run is the euphemism used amongst expats in Thailand (and Southeast Asia) when speaking about going to the border with the primary purpose not being to leave the country, but to maintain legal status. An odd “bonus” with regard to the long term visa is the fact that toward the end of the one year visa’s validity one can reenter the country shortly before the visa’s expiration and receive an extra 90 days on the back end.

The Thai Visa Extension

The extension of a Thai visa occurs inside of Thailand. One must file for an extension with Royal Thai Immigration. In order to obtain a visa extension based upon a Business Visa, one must show that the employer has at least four Thai employees for every foreign employee. Also, the visa extension applicant must have a Thai work permit. The business must also produce evidence showing a history of corporate income tax and VAT payment in order to obtain a visa extension for a foreign employee. Finally, should the extension be granted, the foreign visa holder must obtain a reentry permit in order to leave the country and remain in status upon the same visa. (The reentry permit is something akin to reentry permits for US Visas).

Thai Permanent Residence

Thai permanent residence is a difficult and time consuming status to obtain. In order to apply for permanent residence, one must have been resident in the Kingdom for three consecutive years on visa extensions (multiple entry visas will not suffice as one goes out of status at each border run).  There are also salary requirements as well as a minimum Thai language proficiency requirement. Once permanent residence is granted the permanent resident will still need to obtain a Thai work permit should he or she decide to obtain employment. The positive aspect of permanent residence is the fact that permanent resident’s visa does not “sunset,” and can only be specifically revoked.

Note:  Nothing in this post should be construed or inferred as creating an attorney client relationship nor should be used instead of legal advice from a licensed attorney in your jurisdiction.

Tags: long term visa Thailand, Thai B Visa, Thai Visa Extension, Thai Work Permit, Thailand Business Visa, Thailand Permanent Residence
Posted in Thailand Visa | 2 Comments »

For a foreign small business owner in Thailand in order to obtain a Thai visa extension the foreigner must hold a valid Thai work permit, the business must employ 4 Thais per foreign employee, and must get those Thai employees social security benefits. All of this is  fairly straightforward, but a question arises when the non-Thai foreigner is the Managing Director of the company: is the Managing Director entitled to sign up for and receive social security benefits?

Many issues are left to the discretion of the Thai government officers so one of the frustrating aspects of doing business in Thailand is the fact that different offices interpret the Thai laws and internal administrative regulations differently. Case in point, some social security offices view the Managing Director of a Thai company as ineligible to receive social security benefits because he is not “labor,” and therefore is not someone who should be accorded labor protections under Thai law.

This is an odd stance to take particularly when looking at the issue from a common-law perspective because under the jurisprudence of most common law jurisdictions an incorporated entity is viewed as a legal person, separate and distinct from natural persons (even where a natural person is the sole owner or director of a company, or juristic person). Therefore, under the common law, the stance would probably be that the Managing Director works for the company and therefore is entitled to employment benefits like social security.

A counterargument to this position could be that although working on behalf of the company, this role is different than actually working “for” the company. As the Managing Director is, in a sense, the living embodiment of the company. It is a very semantic argument, but not one without at least some merit.

All of this begs the question: How does one  obtain social security benefits for the managing director of a company in Thailand? Where the person seeking the benefit has already enrolled for social security, the benefit can be rolled over when the person becomes managing director. However, the person seeking to roll over the benefit must have left their previous employment no more than 6 month prior to roll over (and this time frame may be left to the discretion of the Social Security legal officer). Another method for obtaining the benefits in this situation is by delineating and distinguishing between Managing Director functions and functions as an employee. In order to do this, one must also show separate pay for the separate endeavors. At the end of the day, it is up to the officer’s discretion and it is always wise to consult a Thai lawyer before making any major business decisions in Thailand.

For more information, please see:

Thailand Visa

Thai Company Incorporation

Note: None of the above should be construed nor used as a substitute for individualized advice from a duly licensed attorney in good standing. No attorney client relationship should be inferred from reading this post

An oddity of Thailand’s Social Security benefits scheme

Tags: Managing Director, Thai Company, Thai Visa Extension, Thai Work Permit, Thailand Business, Thailand Social Security, Thailand Visa
Posted in Thailand Business | 1 Comment »