For the past several decades, Thailand was known for its rich agricultural heritage. However, the present scenario rates Thailand on the top rank for sweeping industrialization. Several local and foreign investors these days are making efforts to open a new businesses to lead the trends in Thailand. These fastest-growing businesses are boosting economic stability in the country and this is the main reason why the Thai government has set up some favorable regulations to support new businesses.
If you are also planning to do company registration Thailand, you may need to know a few essential rules and regulations first. Well, the article below may guide you better on how to start a new business as a beginner in Thailand.
Make a Careful Selection of Type of Incorporation
Thai laws can help you set up four types of incorporations. The local agencies can also help you to do all documentation-related formalities with ease. Below we have listed a few details about the type of business investments that you can make in Thailand:
Making a private limited company is the best choice for foreign investors in Thailand. Note that shareholders are allowed to hold unpaid share amount up to a limited range only. The law helps them to divide capital into shares and it is necessary to have at least three shareholders and promoters to register a company in Thailand. All the involved promoters are expected to have a minimum of one share in the company. The main responsibility of the promoters is to handle various accounting tasks related to commercial and civil codes in the country. Foreign investors may find this type of incorporation more suitable but they can own only up to 49% of shares in such companies as the remaining 51% should belong to Thai nationals.
Board of Investment Promotions
As a foreign investor, if you need full ownership of a business in Thailand, it is good to consider being a member of the board of investment. The main task of this board is to select some foreign companies to assist with the visa grant and work permits. The companies are also exempted from various types of corporate taxes in Thailand. Foreign companies are advised to submit applications for BOI promotion. On submitting an application, you may have to wait for around one to two months to ensure the completion of the process. On selection, you are further required to submit a status report and for this, you can also take help from an accounting firm or a local corporate lawyer.
As per Thai commercial and civil code, you can also think of leading any of these three types of partnerships: unregistered ordinary partnership registered ordinary partnership, and limited partnership. In the first type of company, the partners are required to share the same amount of liabilities and obligations; however, the company doesn’t have any legal status. For the second type, the company is required to be registered with adequate authority and the liabilities, responsibilities, and rights of the entity are independent of the involved partners. For a limited partnership, there is fixed accountability for every partner.