There are so many things that attract a foreign national to set up a new company in Thailand. By establishing a Thai company, the business owner becomes eligible to purchase property in the country and can live or work here for a lifetime. The Thai government is always interested in allowing individuals to set up a new venture in the area so that they can make some positive contribution to the economy. They even provide several considerable facilities and services so that new-age entrepreneurs can set up a company with ease.
If you are also planning to set up a Thai company, the chances are that you need to know more about how to complete the procedure. Well, first of all, it is important to know that in order to establish a new venture, one needs to fill several forms first. Several rules and regulations and mentioned by the government that must be strictly followed by every individual interested in setting up a company in Thailand. Moreover, it is essential for the foreigner business professional to seek assistance from some experienced Thai or English speaking attorney.
Things to know before company registration in Thailand for new-age entrepreneurs:
The most important thing that one needs to clarify before opening a new company in Thailand is how many shares he is allowed to own as a foreigner. If we check the latest terms and conditions, the majority of shares for a Thai company must be owned by some Thai citizen; the exception is available only for the Board of Investment programs. It clearly means that foreigners are allowed to own a maximum of 49% shares in the company. One can make efforts to exceed this limit, but in most cases, it is possible only if a Foreign business license is gathered.
There are multiple forms of companies. The most important one is private limited company and foreigners find it easier to set up. In the private limited company, shareholders have limited liability, but the directors are generally supposed to have unlimited liability. The private limited companies need a minimum of three promoters, and they can be foreigners or Thai residents. But the condition is that they must be real persons and must own a few shares of the company.
The process to set up a Thai company begins with the reservation of company name by the promoters. The promoters at present need to submit a minimum of three names that are not necessarily same as any existing or already reserved name. At the same time, the name should not violate the current ministry regulations. The department of Business Development will choose one out of the three options given by the promoters.
After this, promoters need to file the Memorandum of Association with Thailand’s Commercial Registration Department. It usually contains details about the names of the promoters, values, and numbers of the shares. The statutory meeting must be organized for the establishment of directors and to decide about particular shares. In case if you are planning to have workers from outside Thailand, then also it is important to follow some rules as per the Thai government.
