When you want to set up a foreign company in Thailand, it is important to get approval as per the FBA act in the country. Foreigners can avail license to set up a business under certain categories based on specific rules and regulations.
There are basically three business categories as per FBA act: List one focuses on the businesses with absolutely prohibited foreigners until and unless some exemptions are passed as per the special laws. List 2 includes businesses that are established before setting up Foreign Business Laws. Such types of businesses are allowed to operate under certain conditions. The third category includes businesses that are almost same as Category 1, but the Alien Business License is granted to such investors.
Foreigners may need to obtain a foreign business license to set up a new business in the country. The work permits are issued on the basis of few conditions, and half of the shares are held by a Thai owner. One of the most common entities that can be established in Thailand is a Private Limited Company. Note that a Thai company doesn’t need to follow the Alien Business Act. By opting for preference share structures and Thai nominee shareholders, it is possible to lead a Thai Limited Company with foreign ownership. The government has changed reforms recently and added many new rules to the system for making foreign investments more favourable for the Thai economy. The amendments can be followed with ease.
The restriction on using a Thai nominee shareholder is mentioned in the Foreign Business Act section 4. The new guidelines have also opened new scopes for business registration in certain situations. At present, a Thai shareholder in the foreign company needs to submit the evidence of financing that he/she has used to buy those shares along with few essential documents such as bank statements. The registration rules do not clarify the status of the nominee or shareholder, and it doesn’t even guarantee that the respective Thai company will not be investigated at a later stage. Proper criminal investigations, evidence and declarations are required for every task.
A separate set of regulations are created for owning land in Thailand. The first most step in this process is to reserve the name of the company in Thailand. There are a few specific guidelines on what kind of names can be opted, and it takes around 30 days for approval. After finalizing company name, one needs to set up a memorandum of association in the Commercial Registration Department along with few essential documents. Almost three promoters need to sign this document, and each one of them must be company shareholder. The capital requirements must also be followed, and the procedure may also require submission of some government and consultation fee. You can take help from an agency in the country to better understand the norms and regulations. The agents can help you to take your business idea to a whole new level with easy company registration in Thailand.
There are basically three business categories as per FBA act: List one focuses on the businesses with absolutely prohibited foreigners until and unless some exemptions are passed as per the special laws. List 2 includes businesses that are established before setting up Foreign Business Laws. Such types of businesses are allowed to operate under certain conditions. The third category includes businesses that are almost same as Category 1, but the Alien Business License is granted to such investors.
Foreigners may need to obtain a foreign business license to set up a new business in the country. The work permits are issued on the basis of few conditions, and half of the shares are held by a Thai owner. One of the most common entities that can be established in Thailand is a Private Limited Company. Note that a Thai company doesn’t need to follow the Alien Business Act. By opting for preference share structures and Thai nominee shareholders, it is possible to lead a Thai Limited Company with foreign ownership. The government has changed reforms recently and added many new rules to the system for making foreign investments more favourable for the Thai economy. The amendments can be followed with ease.
The restriction on using a Thai nominee shareholder is mentioned in the Foreign Business Act section 4. The new guidelines have also opened new scopes for business registration in certain situations. At present, a Thai shareholder in the foreign company needs to submit the evidence of financing that he/she has used to buy those shares along with few essential documents such as bank statements. The registration rules do not clarify the status of the nominee or shareholder, and it doesn’t even guarantee that the respective Thai company will not be investigated at a later stage. Proper criminal investigations, evidence and declarations are required for every task.
A separate set of regulations are created for owning land in Thailand. The first most step in this process is to reserve the name of the company in Thailand. There are a few specific guidelines on what kind of names can be opted, and it takes around 30 days for approval. After finalizing company name, one needs to set up a memorandum of association in the Commercial Registration Department along with few essential documents. Almost three promoters need to sign this document, and each one of them must be company shareholder. The capital requirements must also be followed, and the procedure may also require submission of some government and consultation fee. You can take help from an agency in the country to better understand the norms and regulations. The agents can help you to take your business idea to a whole new level with easy company registration in Thailand.
