If you’re thinking of starting a business in Thailand, you’ll need to know about the process of company registration. Thailand has two types of company registration: private limited companies and public limited companies. Generally, Thai companies must register within three months of holding their Statutory Meeting, unless they can prove that they delayed the registration process for some reason. Besides that, Thailand’s corporate tax ID card requirement means that companies must apply for it within 60 days of incorporation.
Business registration in Thailand
The government in Thailand encourages foreign businesses. Not only do they contribute to the economy, they also employ local people and pay taxes. However, there are some restrictions on the types of business you can run in Thailand. Usually, you need to form a partnership with Thai shareholders. These shareholders must own more than 50% of the company, but you still retain control. Listed below are some tips to start your own business in Thailand.
Private limited companies are the most popular form of company registration in Thailand
In Thailand, private limited companies are the most popular form of company formation. They are similar to Western LLCs, meaning that a person holding a certain number of shares is only liable for the unpaid portion of those shares. The company’s management is entrusted to a board of directors. Thai law provides an exceptional level of protection for shareholders and foreign investors. In Thailand, private limited companies are not limited in their business activities as long as a majority of the shareholders are Thai. However, a company with more than 50 percent of shares held by non-Thai citizens may be restricted under the country’s Foreign Business Act.
There is no minimum capital requirement to register a company in Thailand
While there is no minimum capital requirement to register a Thai company, there are some specifics that you should know about starting a business in Thailand. Typically, a company must have three shareholders and at least THB 2 million in registered capital. Thai laws prohibit issuing shares with a par value of less than THB 5 and treasury shares are prohibited. Depending on your business’s goals and location, you may require more or less than this amount to register your company.
There is no requirement to have a statutory meeting to register a company in Thailand
When you are registering a company in Thailand, you will need to reserve a name for your business. This name cannot be similar to an existing company in Thailand. The name must also end with the word ‘limited’. You should submit all the documents, including the Memorandum, in Thai. If you do not have a Thai address, you can register your business in any other country.
There is no need to have a representative office in Thailand
In addition to a Thai company’s headquarters, a Representative Office is required if you are introducing new products or services to the Thai market. This office has a number of responsibilities, including obtaining a license and presenting the company’s power of attorney. As such, it is important that the representative office manager has all the required credentials, including a national ID and a household registration.