Company Registration in Thailand
Starting a business in Thailand usually requires a lawyer who understands corporate law in Thailand. You need to understand how to register the company in Thailand and what are your options.
A company may register in Thailand. The memorandum of association must be approved by the Ministry of Commerce, shareholders must subscribe to all shares, and the transacted business must have cabinet approval. After a Thai company has registered, it must file tax ID cards and VAT certificates, and all necessary business documents with the Department of Business Development. It also must file all necessary tax documents with the Central Filing Office of the Revenue Department in Bangkok.
Registering a Company in Thailand
There are a few steps involved in registering a company in Thailand. The first step is registering with the Trade Register, which is located at the Ministry of Commerce. Then, you'll need to draft a company's articles of association, name a secretary and directors, and register for VAT and social contributions. Once you've done all of this, you can choose a company name, which is valid for 30 days.
Next, you'll need to register a company name, which must be unique from existing Thai companies. After choosing a name, you'll need to prepare documents to register the company, including a list of shareholders, meeting notes, and proof of payment of share capital. DBD's website has step-by-step instructions on how to file these documents. Make sure you know Thai so that you can fill out the correct wording.
Types of Business Registration Options in Thailand
The government of Thailand has liberalized investment regulations to welcome foreign businesses, including those aiming to manufacture, sell and market electronics, paper, and other types of products. It has also made it easier for foreigners to own property in Thailand and to engage in business activities. The government provides duty exemption to manufacturing firms that export their products and has many tourist destinations in the country. In addition, companies with a US presence can have up to a majority stake in a Thai company, under the US-Thailand Treaty of Amity.
Foreign companies have several options to choose from in setting up their corporate presence in Thailand. Here are the options:
Limited Company – is among the most popular business registration type in Thailand. A Limited Company is the most popular form of business structure in Thailand. It is owned by a minimum of three shareholders. The liability of each of the shareholders is limited to the par value of their shares.
Ordinary Partnership – This type of business is composed of two or more partners who share unlimited liability that can be utilized in case of inability to service debts.
Representative Office – activities are limited to reporting business movement in Thailand, sourcing services and goods in the country, and in the conduct of inspecting and controlling goods for their quality and quantity. It cannot earn income while operating in the country.
Branch Office – this is contrary to the representative office. However, the head office of the foreign business may also be held responsible for liabilities incurred by the office.
After a Thai company is registered, it must open a corporate bank account. Many banks in Thailand offer accounts that cater to companies, but you must note that they may only have a savings account. Without an ATM card, your company will have to pay its clients in cash or transfer funds to the bank in person. If you're planning on transferring funds to clients, a digital business account may be a more convenient option.
Thai Limited Company
Having a Thai limited company is a great way to incorporate your business in the Kingdom. These companies are incorporated in Thailand and come with a limited liability, which means that the owners of the business have no personal liability while in their directorship. Directors of these companies must also be Thai citizens or permanent residents. Foreign directors, however, need to have a valid work permit or visa before they can become a director.
The first step in setting up a Thai limited company is to register with the Department of Business Development, a branch of the Ministry of Commerce. You need to meet certain requirements to register your business, including a Thai-only name that has the word 'limited'. Once you've met these requirements, you'll need to choose three names and rank them in order of preference. Your chosen name should be easy to pronounce and easy to spell, as it will be the company's name for all business operations. Then, if you choose a name that's reserved, it will be valid for thirty days.
Representative Office in Thailand
A Representative Office is a legal entity in Thailand that manages services businesses for a foreign company. They do not receive payment from foreign companies. Representative Offices must be incorporated and licensed in Thailand. The requirements to open a Representative Office in Thailand vary by country, but they all have the same basic requirements. Read on for more information. To start a Representative Office in Thailand, you must fill out an application form. The application must be completed in print and signed by the representative.
The process of opening a Representative Office in Thailand usually takes around three months, but may take longer depending on the workload. Representative Offices may only conduct business on behalf of their parent companies. Representative Offices cannot earn any income. The foreign company must have at least 3 million Baht to fund their activities. After that, they must prove their funding from overseas. This is a necessary step if they plan to earn income from their Representative Office activities.
Foreign Business License in Thailand
A Foreign Business License in Thailand is needed if you wish to conduct business in Thailand. In order to obtain this license, you must have either a Thai registered company or a juristic person who is a citizen of another country. In addition to this, the business must provide goods or services to the Thai private sector under a contract of sale or service. This type of business requires high-level technology and specialized skills. You must know which industry will benefit from your products and services.
If you own a company in Thailand that employs foreigners, you must apply for a Foreign Business License. The first step in obtaining a license is setting up a Thai company that has a foreign majority shareholder. The next step is to submit an application for this license with the Department of Commercial Registration (DCR), which will be reviewed by the Foreign Business Committee and the Cabinet. You should also submit a BOI application, as this will increase your chances of obtaining the license.