Thailand’s economy is one of the strongest in Southeast Asia, with a GDP of $543 billion in 2020. The country has a diverse economy, with major industries including tourism, manufacturing, agriculture, and electronics. The government has implemented policies to attract foreign investment, making it an ideal location for businesses looking to expand in the region.
The benefits of forming a firm in Thailand are numerous for those wishing to engage in the Thai corporate environment. Because of the nation’s advantageous position and well-developed infrastructure, markets in Asia are easily accessible. Continue reading to learn how simple and efficient it is to establish a trade in the nation.
Types of company structures
In Thailand, there are several types of company structures available for businesses. The most common type is the private limited company, which requires at least three shareholders and a registered capital of 15,000 baht per shareholder. This type of enterprise provides limited liability protection for shareholders and allows for ease of ownership transfer.
Another type of company structure is the public limited company, which requires at least 15 shareholders and a registered capital of 5 million baht. This type of enterprise is suitable for larger productions that plan to go public and offer shares to the general public.
Lastly, there is the partnership structure, which can be either a general partnership or a limited partnership. In a general partnership, all partners share equal liability for the firm’s debts and obligations. In a limited partnership, some general partners have unlimited liability, and limited partners have limited liability.
Steps of business registration
Company registration here involves ten important steps that must be followed to successfully establish a business.
- Obtain a corporate name reservation.
- The company must prepare MOA, and submit it to the Department of Business Development.
- Obtain a tax identification number from the Revenue Department.
- Register for Value Added Tax (VAT) with the Revenue Department.
- Register for social security with the Ministry of Labour and Social Welfare.
- Obtain a corporate license from the local district office.
- Register for industry licenses.
- Register with the Department of Employment to obtain a work permit for any foreign employees.
Corporate permits required
In Thailand, there are several types of corporate permits required for enterprise registration. The first type is the Foreign Corporate License, which is required for businesses with foreign ownership. This permit is issued by the Department of Business Development and allows foreign companies to operate in Thailand. The second type is the Value Added Tax (VAT) registration, which is required for businesses that have an annual turnover of over 1.8 million baht. This permit is issued by the Revenue Department and allows businesses to collect VAT from their customers.
Another important permit is the Work Permit, which is required for foreign employees working in Thailand. This permit is issued by the Department of Employment and allows foreign employees to legally work in the country. In addition, businesses that operate in certain industries, such as banking and insurance, may require additional permits and licenses.
Fees and capital
To register a company in the country, several fees and capital requirements must be met. The minimum registered capital for a Thai limited firm is 1 million baht, with at least 25% of that amount being paid up. Additionally, there are government fees that must be paid, including registration fees, stamp duty, and corporate tax. It is important to note that these fees can vary depending on the type of firm being registered and other factors.
Documents required
To register a firm in the country, several documents must be provided. These include a memorandum of association, articles of association, and a certificate of incorporation. The memorandum of association outlines the company’s objectives and the names of the shareholders, while the articles of association specify the firm’s internal regulations. The certificate of incorporation is issued by the Ministry of Commerce and confirms that the syndicate has been legally registered.
Additionally, it is necessary to provide identification documents for all shareholders and directors, as well as proof of address for the company’s registered office. This can include a rental agreement or a property ownership certificate. It is also important to note that all documents must be translated into Thai and notarized.
Once all necessary documents have been gathered, they must be submitted to the Department of Business Development within the Ministry of Commerce. The registration process typically takes around two weeks, after which the firm will receive its official registration number and be able to conduct trade in Thailand.
