Everything That You Need To Know When Registering A Thai Company
Establishing a private limited company in Thailand is a bit complex. Foreign investors across the world find the country a perfect place to grow a business.
The reason behind this is a healthy economy over the past years which attracts more and more investors. My Thai Company in Bangkok helps a lot of entrepreneurs planning to do business abroad. They find ways to finish company registration as quickly as possible. It is inclusive of the submission of documents and a series of meetings to finalize everything.
Why Foreign Investors Choose Thailand?
Thailand is best known for its rich culture and livelihoods. Locals can guarantee how good it is to run a business in the country with all the possible perks. To mention a few include a wider market to earn more revenues in a short time and friendly residents to support your business.
In the case of foreign entities, it is not that difficult to enter the Thai market. They can work with local entrepreneurs to connect with target audiences a lot easier.
Investors choose to start a company abroad because of the higher income and experience. Meeting global investors is one of the benefits of registering a business in Thailand.
List of Requirements For Company Registration In Thailand
- Learn Foreign Business Act
To avoid problems, starting a business abroad requires following the rules.
The Foreign Business Act of 1999 governs business practices in Thailand. It includes a comprehensive list of businesses that are prohibited and require government approval. After that, you will know with certainty whether or not to proceed with your business in mind.
- Type of Business
Choose a business that you would like to eventually run. When selecting shareholders, keep Thailand's policies in mind. The company ought to be a part of the Board of Investment program, in which the majority of shareholders should be Thai and the rest should be foreigners.
There is an exclusion to the standard for unfamiliar possessed organizations which do not contend with different organizations in Thailand.
For novices, a private limited company is best. Directors and shareholders will each have limited and unlimited liability.
- VISA Application
To start a business in Thailand, you need to get a business visa. It has a one-year validity and costs 5000 Baht.
The SMART Visa is a type of document designed for new business owners that grants many privileges. It lets a person stay in Thailand for up to four years without needing a work permit.
How To Get Started A Private Limited Company?
Getting started is the most complicated part of being an entrepreneur.
- Company Name
Existing company names cannot be repeated for legal purposes. Hence, create a unique brand identity to register your business and reach out to target audiences.
Be mindful of the prohibited terms when naming a Thai company. These include the word "investment" but rather use "capital" to make it valid. Lastly, end the company name with the term "limited".
Do not use lengthy words to cater to non-English audiences. Instead, register the company name in Thai for your advantage.
Submit at least three company name ideas to the Department of Business Development. This will benefit business owners with alternatives in case the company name is already taken.
After approval, the business owner can use the company name within 30 days. There is no extension unless you complete step two.
- Complete All Necessary Documents
The Memorandum of Association or MOA bears an agreement on how to run the business. Make sure to incorporate all important details before submission.
It will be submitted to the DBD together with registration fees of up to 25,000 baht, depending on the capital shares.
- Statutory Meeting
Once the company is registered, conduct a statutory meeting to clear things out. This is the best time to fix documents and the number of shares. Appointing auditors and directors to operate the business must be done through a majority of votes.
- Register To The Ministry of Commerce
This is necessary within three months after the statutory meeting. The signing of documents happens this time to verify all the receipts. Together with that paperwork are the number of shares and a list of incurred capital.
- Corporate Tax
It is essential to pay taxes in Thailand within 60 days of business operation. Larger foreign companies with 1.8 million baht turnover each year are subject to taxes within 30 days. This excludes them from VAT but must pay the special business tax instead.
Know the types of businesses that are subject to certain taxes to avoid confusion. This will also prevent added fees and possible lawsuits.
- Employee Protection
Thai employees, both local and foreign, must register for social security within 30 days of being hired.
This comes with plenty of benefits, like all-time protection against losses and damages.
The amount of contribution will depend on the employee's salary. For instance, a minimum salary of 1650 baht must contribute 83 baht. The maximum contribution sticks to 750 baht even if the minimum salary exceeds 15,000 baht.
Company registration in Thailand will consider many factors to enjoy its full benefits. Understanding the Foreign Business Act could be enough to avoid pitfalls in getting started. Beware of the required fees and documents not to miss out on anything.
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