Registering a new company in Thailand is a convenient task, but you have to make some informed decisions in this process. The government offers several benefits and assistance to the foreign investors in the country so that they can lead their business with ease.
The Accounting & Corporate Regulatory Authority (ACRA) in the country supervises the entire process for company registration Thailand and they can also guide new businesses to fulfill necessary compliance requirements.
If you are also planning to set up a new business in the country, it is the right time to understand various factors that may affect your decisions in this process. Moreover, adequate knowledge in the field can also help you to save much of your time and money.
Factors affecting company registration choices in Thailand:
Below we have listed a few essential factors that play important role in completing company registration in Thailand:
• The number of partners, members, or owners:
In case you are interested to be a sole business owner, the best idea will be to register a sole proprietorship. With such a type of business, you will be free to make all necessary decisions. In case you have two to twenty professionals in association with complementing skill sets, it is good to register LLP in the country. However, for a group of 1 to 50 professionals, a private limited company will be the best choice.
• Initial investment:
You may have to make a certain initial investment in the business and the amount may vary depending upon the activities and operations you are planning to lead. In case you want to start from a small business, you can choose sole proprietorship and when you see some growth, you can convert it into a private limited company.
• Liability:
It is important to understand that depending upon the existing business structure, you may have some liabilities. Generally, the liability of members in LLP and sole proprietorship is limited. However, the private limited company shareholders are liable for all the investments they have made in the company shares.
• Income tax rates
As per the latest guidelines of the Thailand government, the private limited company has to pay a corporate tax of 0 to 17% on taxable income. The owners and shareholders of this company need not make any payments for it. On the other side, the owners in a sole proprietorship need to pay personal income tax returns ranging from 0 to 22% of their income generated from the business.
• Funding for expansion
Observations state that the investors, financial institutes, and banks find private limited companies more credible. It helps them to raise the capital with ease for the growth as well as expansion of related activities. However, the credibility in the case of the sole proprietorship depends completely on the proprietor, and in the case of LLP, it is influenced by the involved members. Such businesses often find it difficult to expand their activities due to limited finances.
Now you have gone through all the essential factors to start a business in Thailand. This information may help you lead operations with more confidence.
