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ResourcesCorporate and Tax AdvisoryThailand Corporate LawAre Thai "Sponsored Work Permits" Impractical?

Are Thai "Sponsored Work Permits" Impractical?

Transcript of the above video:

As the title of this video suggests, we are discussing so-called "sponsored work permits". We have done a number of videos on this channel. For those who are unaware, "sponsored Work Permits" is basically where you are just fake working for another company. You basically say you work for a company, they say they are employing you and then they put you on to their company as a Work Permit holder. 

I made a number of videos as to why that is not a good idea most notably it is depending on the circumstances it is probably fraud. If you are not really working there and you have a Work Permit there, well that is pretty deceptive. The other issue could be you could run into real issues with Immigration including deportation. It could also be viewed as a species of human trafficking depending on the circumstances. But one of the major things about it is, in my opinion it is just impractical. I just had to deal with somebody these past few weeks here that was a client here in our firm that basically had gotten into a situation similar to this where they were pretextually on a Work Permit and they were trying to deal with extricating them self and there were all sorts of problems. They couldn't get the requisite documentation that they needed associated with various aspects of their status here in Thailand and it just resulted in a real problem.

An alternative to this and I have noted this many, many times. If you are looking to be in Thailand and you are looking to do business, a small business can accommodate. You can set up a Thai Corporation, maintain your Work Permit and Visa status through your own Company. For Americans, under the Amity Treaty you can own your company out right notwithstanding the provisions of the Foreign Business Act that requires certain Thai ownership requirements depending on the type of business you do. 

So again, it is going to depend on the facts of the specific case but in my opinion 99% of the time, those who are looking for a "sponsored work permit" are going to be much better served by setting up a company in Thailand and maintaining their status while doing business in Thailand through that type of vehicle.