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Company Registration Thailand


Setting up a Business in Thailand


Our firm specialises in setting up safe and secure company structures for foreigners. Our consulting staff have set-up thousands of companies in Thailand and have decades of combined experience in company registration and all facets of Thai law for foreigners. Contact us for a free consultation, we are ready to help.


Thailand offers a wide variety of business structures, many of which are also available to foreigners (as long as they do not violate the conditions of the Foreign Business Act). The legal form of a business can be a sole proprietorship, an ordinary or limited partnership, a representative, regional or a branch office, a joint venture, a limited company or even a foreign company. Moreover, each entity is either trading or non-trading and different rules apply towards its ownership.


Thai Limited Company


In most cases, the preferred first step to setting up a new business in Thailand is the establishment of a Thai limited company – a Thai equivalent of the Limited Liability Company (LLC). Unlike in the West, its creation does not happen immediately but instead a more formalised incorporation process takes place.


To begin the process, there are two essential documents: the Articles of Association and the Memorandum of Association, both of which must be registered with the Thai Ministry of Commerce. Articles of Association can be tailored to suit the specific needs of a company, as long as the original shareholders and promoters (if different) agree to the terms in writing.


Pros and Cons of a Thai Limited Company


Thai limited companies are the preferred route for setting up a business in Thailand, largely because they are so similar to co-operations in other developed nations. The process will, therefore, feel familiar to businesspeople, even if they have little or no experience of business in Thailand. All limited companies have directors, shareholders (both Thai and foreign in many cases), promoters, and limited liability. In this case, limited liability means that the shareholder in a Thai company can only ever lose what capital they invested.


Aside from familiarity, Thai limited companies are a popular way of doing business because they offer any number ways of generating profit. Although there are double taxation issues (on both the earnings of the company and dividends), many of these issues can be easily resolved by rolling profits into the salaries of directors and other shareholders.


Another benefit of the Thai limited company is that the rights and obligations of all parties are set down in writing, ensuring everyone has a clear understanding of their legal standing within a company, unlike some joint ventures where a number of duties and privileges can drift into a complex grey area. With a Thai limited company, all legal entitlements and responsibilities are clearly stated and available for reference when required.


Setting up a Thai Limited Company


The process can take one day. Only three mandatory shareholders are required to incorporate and register a new Thai limited company. These improvements come with an unprecedented government drive to encourage foreign business in Thailand. The door is now wide open for foreign investors, even more so following government policy changes which have streamlined the process of registering a new Thai company.


If a Thai Company is majority owned by a foreigner, the foreigner must obtain a foreign business license before engaging in business activities. However, it is worth noting that a Thai limited company that is majority owned by a Thai will not encounter such restrictions. Consequently for many, it is beneficial to form a business partnership with a Thai national, in order to meet the legal definition of a “Thai company.”


100% Foreign Ownership Options for a Thai Company

    
     BOI – Board of Investment Company

       A BOI promoted Thailand company can enjoy the benefits of 100% ownership, tax incentives and other
       government concessions.

     Foreign Business License

       A company may make an application for 100% foreign ownership by demonstrating a benefit to the country
       through technical and knowledge transfer, investment and employment factors.

     Thailand Export Company

       A company registered to EXPORT ONLY with 100% of the revenues realized from outside Thailand is eligible for
      100% foreign ownership.

     Thailand Manufacturing Company

       A company registered to MANUFACTURE FOR EXPORT ONLY with all revenues generated from outside
       Thailand is eligible for 100% foreign ownership.

     Thailand Hotel Management Company

       A company registered as HOTEL MANAGEMENT ONLY is eligible for 100% foreign ownership.

     Representative office, Regional Operating Headquarters & Branch Office

       Other corporate registrations for foreign registered companies are possible with each carrying specific restrictions
       on operations and profit/revenue generations.

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