Thailand is recently enjoying consistent economic growth and progress. This is due to the presence of effective workforce, adequate infrastructure and great government policies supporting the businesses. The government put policies and measures in place to shorten the process of registering businesses in Thailand. As a matter of fact, Thailand is among the best places to get a company registered in Asia primarily due to the simplicity of the process of registration and that there are just a small number of requirements to be submitted.
There are no any unneeded requirements which normally end up in frustrating potential company owners. It’s important to take into account that the process of registering a business in Thailand depends mainly on the kind of company that you plan to start. Below are the different kinds of companies and their corresponding registration requirements and procedures.
The process in registering PLC’s or private limited companies in Thailand is the same with the process of registering western companies. To register a private corporation in Thailand, you have to go over the process of formulating as well as registering the Memorandum of Association, the by-laws of a company & constitutive documents. It’s necessary to take into account that you require at least 7 stakeholders to register a private corporation in Thailand.
It’s important to keep in mind that the company could be owned entirely by aliens wherein case participation would be permitted for up to 49 percent. The registration charge required so you can form or set up a private corporation in Thailand is 5,500 baht per million baht capital. In Thailand, the process behind registering public limited corporations is subject to complying with. MOA registration and formulation for the public corporation in Thailand requires 15 promoters who will be shareholders for a minimum of two years.
The board of directors of a public company should be five or more. Half of the directors need to be citizens of Thailand. The overall registration charges needed to start a public corporation in Thailand is 2,000 baht per million baht capital.
Joint Venture Companies
A joint venture corporation is the company that has been established by a group consisting of locals and foreigners who enter in the agreement to set up any form of company to do business together. In Thailand, joint venture corporations are normally formed in the same way with normal corporations. On the other hand, the process may differ based on the shareholders such as Thai government or Thai nationals. For example, Thai nationals habitually form and establish private joint ventures that are the same to forming private limited corporations. Joint ventures between the government and foreigners usually think that the process of registration for public limited corporations.
It is necessary to ensure that the formation of a joint venture company and the companies differ in different ways in Thailand. For example, joint ventures are not recognized as the legal bodies under the civil and commercial law in Thailand. On the other hand, it is a must to consider that the income that has been generated from the joint undertakings is subject to taxation under the revenue code of Thailand.
For more information about company registration in Thailand please click here.