Essential Information in Doing Business in Thailand
Doing a business in Thailand is now profitable for most investors. It has a very stable economic condition which is favorable for many businesses. Aside from this, the strategic location of Thailand is another factor that makes business in Thailand advantageous.
There are many things that are needed in applying business registration in Thailand. Before applying for business registration in Thailand you must choose the type of operation that you wanted for your company. There are several forms of business operation in Thailand and in deciding which form you would want for your business requires many essential aspects.
Click here for Our full information & Services Fees for Company Registration in Thailand
Different Forms of Business in Thailand
There are various forms of businesses that give you an option which type would you like to have for your company. The sole proprietorship is just one of the types of business that can be owned by a single individual. Another form is the partnership wherein there are three kinds of it namely the ordinary partnership, registered partnership, and the limited partnership.
In unregistered partnership both partners are liable for all the liabilities and obligations of the company. They are required to declare all their personal assets so that in case the need arise for payment of the liabilities all the properties of both partners are subject for liquidation. While in the registered ordinary partnership, both will have legal entities wherein they become distinct from each other.
The private limited partnership requires 3 promoters and all of them must submit a Memorandum of Association. They must set legal meeting that will review all the regulations that have been for the company.
After this the owner must apply for Thailand business registration and acquire a taxpayer identification card. Limited partnership must adhere to the regulations that are set by the Civil and Commercial Code. This type of business is also required to pass a balance sheet every year to the Department of Revenue and Commercial Registration.
They must also withhold the income tax of their employees and register them to the Social Security office for their insurance benefits. The limited partnership has two categories and these are the limited liability wherein the liability of the partner is only limited to the limited share he has in the company and the unlimited liability are for partners who have unlimited investment in the business and they are liable for all the obligations without any limitation.
In applying for the business registration Thailand, the partner who has greater investment is the one who is going to apply for the Thailand business registration and must agree to all the regulation that is mandated by the authorized office. The limited companies are required to have 3 promoters and the shares of each promoter must be in accordance to the Securities Exchange Act B.E. 2535.
How to do Business in Thailand?
In doing business in Thailand, the company must file the Memorandum of Association and submit it to the Ministry of Commerce Company Registrar. Included in this submission are the business name, permanent address of the company, objectives, and the capitalization.
The least start up capital for the Thai national is 25,000 Baht while the foreign investor is required to have a capital amounting to 2,000,000 Baht. Company must also give the personal information of the board o directors of the company, as well as of the three promoters.
However this does not mean that you need to have this amount of money to start, it is the limited liability of your Thai limited company.
Then call for a legal meeting where all the objectives and rules of the company will be reviewed by these legal representatives and they are the one who is going to give a recommendation whether the company’s rules and regulation still need to be revised. Then after the statutory meeting, the company has now to submit company registration Thailand within three months.
The company has to obtain a tax identification card within 60 days from the Revenue Department and those companies that are earning more than 60,000 Baht is required to have a VAT. The company must also appoint an auditor who will be responsible for books and accounting procedures as prescribed by the Accounts Act, Revenue Code, and the Civil and Commercial Code. Balance sheet must always be prepared every year and submit it to the Revenue and Commercial Registration.
In applying for Thailand Company registration you must also do thorough research about the labor regulations in Thailand. It is advisable if you seek legal advice legal advice from Thailand’s lawyers so that you will know and be able to follow the rules set for the labor protection. Included in the labor protection are the number of working hours, holidays, leave benefits, wages, overtimes, and other compensations which have to be given to the employees. It is very important that you follow all the rules that are set for the labor protection to ensure smooth operation of your business in Thailand.
These are the important factors that you should seriously take into consideration in applying for a company registration in Thailand.
The process of register company in Thailand through our assistance is relatively easy and simple. TILALEGAL can usually have your company setup and under your full control within 3-4 weeks. However when registering a Thailand company for foreign ownership there are a few things to consider to ensure that you can retain control and ownership of yourcompany. A lot of these considerations you may miss and not complete correctly should you register your company alone or with the wrong law firm. You've taken the first step correctly in making contact with us.
If you're currently staying in Bangkok we can give you a free, no-obligations legal consultation to answer any of your questions and let you know more about what's involved in registering a company here in Thailand. Our firm's office is located near the Phom Prong BTS sky train station, for a map and directions you can find it on www.tilalegal.com/contactus.php Simply let us know what date and time you'd like to meet.
If you're not currently in Bangkok, that is ok we are able to assist you remotely, however should you choose us to setup your Thai company you will just need access to a scanner should we require any documents from you.
Filed under
