Starting a dive school in Thailand
The most common and well-known business vehicle used by foreigners starting a scuba dive school in Thailand is a Thai limited company. Foreigners are not free to operate businesses in Thailand but a majority Thai owned company is regarded as a Thai entity and therefore free to operate businesses in Thailand.
Foreigners are allowed to have management and control in a majority Thai owned limited company through a preference share system.
Many legal considerations have to be taken into account
Foreigners operating a scuba diving school will require a work permit and the Thai limited company under which the business is run several licenses and insurances depending on the scope of activities of the scuba activities and company assets.
The main requirements are:
A work permit must be obtained or the foreigner risks criminal charges and deportation out of Thailand. Work under the Foreign Employment Act is defined as 'exerting one's physical energy or employing one's knowledge, whether or not for wages or other benefits'. Acting as a director, employee or voluntairy dive master assisting in a dive school it is defined as working under Thai law.
To obtain a work permit in Thailand a foreign diving professional must have a non-immigrant visa and be employed by a Thai company under which the diving business in run. The company should have a share capital of at least 2 million Thai baht for each foreigner working in the scuba diving school. If the company employs one foreign instructor and one foreign dive-master the company must have a share capital of 4 million baht.
If the scuba diving school owns its own boat for diving purposes the foreign shareholding in the company under which the business is run must be limited to less than 30% of the total shareholding. Any more foreign shareholdings and the company will be regarded as a foreign entity under the Thai Vessel Act.
Thailand TAT tourism license regulations restricts foreign participation in companies engaging in tourist related businesses. The application of this license requires a Thai management in the company. A solely foreign managed Thai company would not be able to allowed a tourist licence.
About the Author
Tiwi writes legal articles for Phuket Law Online and Thai company laws, but also about private legal matters and contracts such as prenuptial agreements in Thailand
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