If you are planning to set up a business in Thailand as a foreign investor, establishing a private limited company can be the best idea. However, before starting the formalities, you should understand the essential requirements and steps to start a private limited company.
Those who are new to the concept of a private limited company are advised to spare some time to read the article below.
Step 1: Register a unique company name
While registering your company, you may need to make sure that the name of the organization is unique. As per Singapore government regulations, you cannot use any pre-existing registered name for your company. Also, the government has restricted using some specific names as well such as “Investment” but they allow using “Capital” in the name. Also, the company should have the word “Limited” at the end of the name. In order to ensure success for your business, it is good to find a name that matches your niche area. Moreover, the name must be easier to remember for people.
Step 2: File memorandum of association
A Memorandum of association is an essential agreement that founders of the companies need to prepare in a timely manner. This document must include the following details:
• Name of the company.
• Registered office address of the company.
• Main objectives of the proposed company.
• Shareholders' declaration on the limited liability.
• Estimated share capital amount that the company has proposed at the time of registration.
• Name, occupation, addresses, and signatures of different promoters.
• Information about the number of shares by company promoters.
Once the memorandum of association is registered, the involved parties can announce the statutory meeting.
Step 3: Do company registration
It is important to submit an application to the ministry of commerce and it must be done on the same day when a memorandum of association for the company is registered. However, one needs to make sure that the statutory meeting is already convened. As per the latest rules, it is necessary to lodge an application for registration within three months from the Statutory Meeting date. The company director may need to sign several documents in this process and the receipts need to have clear information on shareholder names, the amount paid, value per share, and money collected for capital payment.
Step 4: Register for VAT and income tax
Once the company registration process is over, you need to apply for a tax ID at the revenue department in Thailand. When you have more than THB 1.8 million turnovers per year for the company and it doesn’t meet special business tax requirements, it is better to register for VAT as soon as possible, preferably within 30 days when turnover goes above the set threshold. Other than this, it is important to register for the social security of your company.
Now you have gone through some essential steps to register a private limited company in Thailand. You can also take help from local agencies to complete all the documentation related to company registration Thailand. They can help you achieve desired outcomes with ease.