Registering a New Company in Thailand is the first step to doing business in this exciting, vibrant and growing country. As an international market, Thailand offers many benefits to both domestic and foreign investors alike. This includes strong government support, incentives, sufficient infrastructure and cost-effective workforce.
The process of registering a new company in Thailand is regulated by the Thai Civil and Commercial Code. It involves several stages that must be completed in order to complete the process and receive a registration certificate. The first step is to choose a name for the company. This can be done online or with a registered agent, and must be in Thai.
Choosing a name is not an easy task, however. It must be original and not too similar to another company’s name. The name must also be suitable for the industry you plan to enter in Thailand.
A company in Thailand must have at least three shareholders and a director. The director is responsible for managing the company’s affairs and has fiduciary duties to the shareholders and the company itself.
There are no minimum capital requirements for forming a company, but it should be enough to sustain the company’s operations. Moreover, you will need to have the required funds available to pay for a statutory meeting and to file the application to the Department of Business Development (DBD).
For companies that intend to employ and hire foreigners in Thailand, the total registered capital is usually 2 million baht per employee – this number is reduced to 1 million baht if the foreigner is married to a Thai national.
Once the company’s share capital is fully paid and the statutory meeting has been held, an application for registration can be made with the DBD. The fee for this application is THB 5,500 for every THB 1 million in registered capital.
In addition to the Memorandum of Association, the applicant will also be required to submit a company seal, company affidavit and a list of shareholders, among other documents. The application and the other documents should be submitted within 90 days of the statutory meeting.
The documents will then be processed by the registrar and sent to the Ministry of Commerce for approval. Once the registrar accepts the application and the documents, the company is registered and a tax ID number will be issued to the applicant.
After a company is registered, the next step is to open a corporate bank account. This can be done through any of the established local banks. You will need to provide the bank with a set of minutes of the company’s board meeting, a list of the shareholders and directors and their identification cards in order to open the account.
Upon registering a company, you will also need to register for income tax and value added tax. The latter can be done within 60 days if the business earns over 2 million baht in sales, or has a Special Business Tax. The Revenue Department will also issue a business tax ID number and an income tax certificate to the business owner.