Known for being a tourist hot spot, Thailand has also become a hub for entrepreneurs and company owners due to the country’s strong potential for business. Continuous amendments to the country’s investment policies has contributed to its economic growth. Moreover, the Thai government offers various tax incentives to encourage foreign investors.
Located in the heart of Asia, companies in Thailand can enjoy trading opportunities with major markets such as India, China and the rest of the South-East Asian countries. As such, investors and start-up companies are flocking to Thailand to benefit from the country’s thriving economy.
To ensure a great business head start, it is important to have an overview of the company registration process. Throughout the next sections, this article will give you an insight of forming a company in Thailand.
Steps to Company Formation Process in Thailand
When venturing into a new market, the first step to success is to conduct research on the registration process and policies. This will help in drafting an effective business plan.
Knowing about the business entities for foreigners and the business registration process is beneficial. This is to ensure a smooth company incorporation process. So, read on to learn about company registration in Thailand.
Types of Companies and Registration Flow for Foreign Investors
Generally speaking, there are three types of companies a foreigner can choose: Limited Partnership, Representative Office or Limited company. Limited Company is the most popular choice because there is no minimum required capital.
Now, to set up a company, there has to be three shareholders of which one is a Thai. Also, do take note that it is important to have a non-immigrant B Visa to file for a work permit. This work permit is necessary for setting up a company in Thailand.
Now, here’s a general guideline to the registration process of a company in Thailand:
Selecting promoters and corporate name reservation
For private companies, at least three promoters are required. As for the company name, it must not be the same or similar to that of other companies.
Filing Of Memorandum of Association
The memorandum of association includes the company name, promoters’ names, company’s location and company’s finance and business objectives.
Convene a statutory meeting
Once the share structure is set, a statutory meeting will be summoned where the articles of incorporation and bylaws are approved.
Promoters will be supplying the name and license number. This is also the phase where the registration fee will be paid.
Companies that are liable for income tax must obtain a tax I.D and number within 60 days of incorporation or the start of operations.
Advice for Foreigners in Forming a Company in Thailand
Thailand’s unprecedented economic growth and a large population have made it a strong emerging market. There is an abundance of opportunities which the business community is seeking to benefit from.
So, in launching a company in the country, the first step is to find a notable translator since all documentation is in Thai. For this reason, consult an expert from a trustworthy company formation agent. These experts can provide reliable advice about the most suitable business vehicle for your company and how to make the business registration process easy.
An expert’s advice is a brilliant investment that can give a company an astounding head start.
6 Reasons Why You Should Invest In Thailand, Konradlegal.com
Starting a Business in Thailand: A 12-Step Beginner’s Guide to Law, Registration, Shareholders, Capital Requirements & Tax, Thethailandlife.com
The World Bank In Thailand, Worldbank.org