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Company Registration in Thailand

RegisterKaro offers a seamless and easy company registration process in Thailand. If you are intending to start a business in Thai Jurisdiction, reach out to us today for Free Expert Consultation.

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An Overview of Company Registration in Thailand

Due to its advantageous location, Thailand has excellent business opportunities for international investors as well as foreigners wishing to establish a Thai firm and conduct business there. Thailand's robust export industry, plentiful natural resources, steady economic growth, and vibrant consumer market make it an ideal destination for international business. The Foreign Business Act (FBA) regulates foreign company formation, Thai company registration, and foreigners' business operations in Thailand. Foreigners can choose from a wide range of company formations, including the widely used Thai Limited Company. A basic Thai Limited Liability Company can be registered in Thailand in as little as three to five business days, while a more complicated BOI Company may require up to 90 days. This entire procedure is based mostly on the chosen company structure.

Company Registration in Thailand

An Overview of Company Registration in Thailand

Why to start a business in Thailand?

Thailand is a popular choice among the investors and entrepreneurs for starting a business for many reasons, such as:

Why to start a business in Thailand

Government Policies: The Thai government introduced "Thailand Plus," a fresh investment incentive program for foreigners which includes tax breaks in specific industries, new tax incentives, and streamlined procedures for foreign investors seeking work permits and visas. The nation's new e-Registration strategy has also been positively received by international corporations and investors.

Trade Agreements: As one of the ten members of the ASEAN Free commerce Area, which also includes Singapore and Thailand's neighbors Malaysia, Cambodia, Laos, and Myanmar, Thailand is able to benefit from increased commerce. The Thai government is aggressively working to broaden its current free trade agreements under the Thailand Plus program, especially by renewing talks with the EU and joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Geographically Friendly: Thailand is becoming a target for corporations mostly because of its advantageous position, which makes it an ideal entry point into Asia. Trade has gotten quite easy between Thailand and ASEAN (Association of Southeast Asian Nations) nations like China and India.

Advanced Infrastructure: Thailand boasts a strong infrastructure, a cutting-edge IT and communications network, and therefore, becoming a more important international economic hub in Asia. Large corporations including General Electric CoRolls Royce, Michelin, Bausch & Lomb, and Novartis have drawn attention to the nation, which is also becoming more active in a variety of sectors, including biotechnology, the automobile industry, aerospace, and the food production sector.

Strong Economy: Thailand's economy has grown significantly over the years, and the IMF ranks it second in Southeast Asia in terms of GDP, only after Indonesia. Official statistics from the World Bank indicates that Thailand's GDP was 543.65 billion US dollars in 2019. Many factors, including the availability of natural resources, the demand for exports, a thriving consumer market, and a talented, reasonably priced labor force, contribute to Thailand's economy's stable and constant growth. These are only a few of the numerous factors that draw foreign investors to the nation.

Types of Companies in Thailand

Thailand Legislation prescribes following structures for company registration depending upon the nature of the business:

1 Joint Venture: A group of individuals (natural or legal) coming to an agreement to conduct business together is known as a joint venture. Under the Revenue Code, which recognizes joint venture as a single business entity, income from this company structure is liable to corporation taxation even if it has not yet been recognized as a legal entity under the Civil and Commercial Code.In a joint venture, two or more people collaborate in order to split earnings, losses, and risks.

2 Ordinary Partnership: The Thai Civil and Commercial Code, section 1025, defines an ordinary partnership as one in which each partner bears unlimited joint and several liability for all partnership debts. A minimum of two people form an ordinary partnership where each partner is required to contribute to the partnership, and this contribution can take the form of cash, other assets, or services. The partners decide together how much cash, assets, or services to contribute.

3 Limited Partnership: There are two kinds of partners available in a limited partnership: one with limited liability and the other with unlimited liability. Limited partnerships are treated as regular partnerships up until they are registered, at which point they must register. The limited liability partners' contributions must be made in cash or other assets. The managing partner role can only be assumed by the partner whose liability is not limited and therefore, is not treated separate from the entity. A valid non-immigrant business visa and work permit are required for any foreign national who wishes to serve as a controlling partner. Foreign ownership is permitted in limited partnerships up to 49%. But if the foreign partner contributes more than 49% of the investment, a foreign business license is needed.

4 Private Limited Company: The most common type of business structure in Thailand is a private limited company, which is created through a registration procedure that calls for the submission of an Articles of Association (AOA) and Memorandum of Association (MOA). A private limited business is not permitted to sell its shares to the general public. Three shareholders are needed for a private limited business, and their liability is restricted. Every share needs to be subscribed for, and at least 25% of those shares need to be fully paid for. It is possible to issue both common and preferred stock, but each share needs to have the ability to vote.

5 Public Limited Company: A public limited company must be formed and registered with a minimum of 15 promoters. Before shares can be transferred, the promoters must hold them for a minimum of two years, unless the shareholders approve at a shareholder meeting. One cannot revert to a private limited corporation from the public. At least half of the board of directors' members must be Thai nationals, and the minimum number of members is five.

Types of Company Structures in Thailand

Documents you might need

To begin with the process of company registration in Thailand, you must have the following documents:

Documents required for Company registration

1: Identity proof of Directors and Shareholders [Passport/ Thai ID]

2: Details of Directors/shareholders [financial Documents]

3: Paid up capital details

4: Registered office address and proof for the same [Lease Agreement/ Utility Bills]

5: minutes of the meeting where the MOA and AOA were approved.

6: Memorandum of Association [if applicable]

7: Article of Association [if applicable]

8: Registration fee payment proof

Process for Company Registration in Thailand

Follow the step by step process for successfully registering your company under Thai Jurisdictions:

Step 1. Company Name Reservation:

The process for company registration begins with deciding the name of the company. When reserving any company name, one should adhere to the standards supplied by the Ministry of Commerce's Department of Business Development (DBD). Once selected, the name must be verified with the authority to check its availability.

Step 2. Directors and shareholders’ list:

A minimum of two (2) promoters, shareholders, and one (1) director are required for the registration and setup of a Thai Limited Company. If a bank in Thailand issues a Bank Statement Certificate to Thai shareholders who are either all Thai nationals but the directors are foreign nationals, or if the shareholders are all Thai nationals but the directors are foreign nationals, it must demonstrate that the total amount of funds in their bank accounts exceeds the purchase price of each Thai shareholder's shares.

Step 3. Memorandum of Association:

The name of the company that has been successfully reserved, the province in which it will be based, its goals for operation, the capital to be registered, and the identities of the promoters must all be included in a Memorandum of Association (MOA), which needs to be submitted to the Department of Business Development (DBD) in the Ministry of Commerce. Even though there are no minimum capital regulations in place, the capital quantity should be sufficient and acceptable for the planned business operations.

Step 4. Statutory meeting:

Once the company's share structure has been determined, the Memorandum and Articles of Association have been authorized, the Board of Directors has been chosen, and an auditor has been appointed, a statutory meeting is called to make all of the appointments as it is a mandatory obligation for company registration. The minutes of meeting for such statutory meetings are then submitted along with other documents.

Step 5. FIle Application:

The last step is to compile all the documents prepared such as capital proof, directors’ details, shareholders’ details, registered office address and proof, minutes of the meeting, etc along with the application for company registration and then submit it to the Department of Business Development (DBD) in the Ministry of Commerce. Once evaluated, your application will receive a green signal for procuring the company registration certificate.

Post Registration To-dos

Once you have successfully completed the registration process, you must do the following task without missing upon any:

Tax Registration: For taxation purposes, any business in Thailand needs to be registered. Within 60 days of formation or the commencement of business operations, businesses that are required to pay Corporate Income Tax (CIT) must receive a Tax ID card and registration number for the company from the Thailand Revenue Department. In addition, business owners who are responsible for paying Value Added Tax (VAT) have to apply for a VAT ID within 30 days of reaching THB 600,000 in sales.

Bank Account Opening: After being formally registered, businesses in Thailand are able to use online banking and open corporate bank accounts. To open a company bank account, you need to know which bank and location, what kind of accounts the firm needs, and who will sign the papers. Because the statutory meeting must be held at least seven days before the actual registration, the registration process typically takes at least nine days.

Post Registration To-dos

Why Choose RegisterKaro for Company Registration in Thailand?

RegisterKaro has been one stop solution for Thailand Company Registration for the varied ranges of benefits such as:

Why Choose RegisterKaro for Company Registration in the Thailand?

Pool of Experts: RegisterKaro holds a large pool of experts from all over the world. Our team of experts makes sure that your work is taken care of in the most effective manner possible.

Cost-effective: RegisterKaro Thailand Company Registration Related services are of premium quality at the most efficient rate, which suits the client's pocket, making sure that quality service is not the only thing the client gains on our platform.

Client-oriented approach: Our team of experts is well trained and equipped with a client-oriented approach, keeping in mind that the process must be client-centric, focusing on meeting all the requirements of their business and, therefore, satisfying their needs.

Process Alteration: For the fact that we focus on a Client-centric approach, we keep our process structurization open for the client to alter it as per their need, requirements, and vision. For us, obtaining the best results is the focus, along with the Client satisfaction.

Trusted partner of 10000+ Clients: RegisterKaro has earned the trust of more than 10000+ clients who have availed our services. Their trust in us from a term in continuity is proof of our services backed by quality and assurance.

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FAQs

How much does it cost to register a company in Thailand?

For a Thai business with a registered capital of THB 2 million, the government charges about THB 12,000, and for each additional million, the taxes are about THB 6,000. Additionally, an entrepreneur must pay about 500 THB for a corporate stamp.

Can a foreigner own a company in Thailand?

Yes, foreigners are allowed to own a limited company in Thailand. However, Thai law generally requires that at least 51% of the shares of a Thai limited company be held by Thai nationals, subject to certain limits and laws.

What are the types of company registration in Thailand?

In Thailand, there are three main kinds of business structures: Joint Ventures, Limited Companies, and Partnerships.

Can a foreigner own 100% of a Thai company?

Yes, foreigners may register 100% foreign ownership of a firm in Thailand, subject to the nature of the enterprise and the issuance of an FBL Foreign Firm License or certificate.

How can an Indian start a business in Thailand?

To start a business in Thailand, an Indian citizen will need a non-immigrant "B" (business visa) to enter the country for business purposes. Once obtained, they can establish their business in Thailand like any other Thai citizen.

Is Thailand a good country to start a business?

Yes, Thailand ranks 2nd in the world to start a business as per US reports of 2023. It offers various benefits such as tax benefits, government schemes, a skilled workforce, etc.

What is the tax rate in Thailand for companies?

The corporate income tax (CIT) rate in Thailand is 20%. Additionally, final withholding tax (WHT) is imposed on certain categories of assessable income received from or in Thailand to a foreign corporation that is not conducting business there.

How much money is required to start a business in Thailand?

The average cost to incorporate a company and launch a new venture in Thailand ranges between 80,000 and 100,000 Baht. A capital payment of one million Baht is required when creating a corporation, along with a government charge of 7,000 Baht.

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