When a foreigner thinks of setting up a company in Thailand, the first most choice is to look for a Thai limited company. Whether you want to open a hotel, bar, restaurant, beauty salon, coffee shop, spa, online business, motorbike rental service or anything else, it is first important to register your company and preferably you can go ahead with Thai limited company.
General ownership requirements:
It is important to have almost three shareholders for setting up a Thai Limited Company where around 51% of these shares are assigned for some Thai legal entity; that can be a company or person. You can find three common exceptions to this law:
• When the company is being owned by a foreigner that owns US citizenship, it must be set up by following the Amity Treaty.
• It is also possible to set up a company by taking support from Board of Investment (BOI).
• Companies that need to export services and products only.
Note that, the sole proprietorship companies are available for the Thai citizens only as they do not issue work permits.
Steps for setting up a Thai limited company:
If you are eager to set up a business in Thailand, it is important to follow these simple steps:
1. Reservation of Company Name:
There are two essential requirements for finalizing the name of the Thai company. First of all, the name of the company should not be similar to any other company that is already registered in the country. Secondly, certain specific names are not permitted as per government laws; it includes some vulgar phrases or words that are primarily related to the royal family. One need to submit three different company names to the Department of Business Development.
2. Filling a Memorandum of Association:
As soon as the company name is opened, the shareholders must work on Memorandum of Association. It includes shareholder’s names and personal details along with company address, intended scope of the business, and registered capital as well. The MOA and few other essential documents must be submitted to professionals at the Ministry of Commerce.
3. Company registration:
The next important task is to register your company in Thailand. Once the shares of the company are reserved by teams at the Ministry of Commerce, it is time to call statutory meeting while paying almost 25% of the registered capital. After this, the Ministry of Commerce issues company certificate, company affidavit, company articles of association, and the list of shareholders. After this, the company can begin with its desired operations.
4. Few other requirements:
Once all these details are fulfilled, it is time to go for registration of VAT and Tax ID. One needs to get the operational licensing and the go for social fund registration. Opening a bank account in the area is must, and at the same time, one needs to obtain a required work permit as well. As soon as you are done with all these legal requirements, it becomes easier to run business in the country.
