HOW TO SET UP A COMPANY IN THAILAND
Why Thailand?
Thailand has always been one of the most attractive business locations in the Southeast Asia region. Here we are at the center of economic and business interactions among ASEAN member countries, with a wide range of customers and business opportunities. The most cost-effective and common way would be opening a limited company. This is similar to LLC – Limited Liability Companies in other countries. With well-prepared documents and professional guidance, a limited company can be set up in as little as several days.
As a general rule, a Thai limited company limits foreign business ownership to a maximum of 49%, meaning foreigners can hold no more than 49% of the shares. Inexperienced or misinformed investors may try to get over this obstacle by engaging Thai nominee shareholders to hold a 51% stake in the business on their behalf, however, this action is in violation of the Foreign Business Act established in 1999 and should be treated with caution.
In the meantime, as following steps which are going to be mentioned, IDGIP has a lot of intellectual property and legal professionals who have above 10 years experience to assist you in every single step, and we are welcome to provide consultancy with free of charge.
How to incorporate company limited in Thailand ?
STEP 1: COMPANY NAME RESERVATION
The first step in setting up a company in Thailand is to reserve your company name. The name must not be the same name or resembles the name of any existing registered company in Thailand. The company name must end with the word “Limited”. The reservation of the company name can be done online at the Department of Business Development (DBD) website. The application for name reservation is normally approved within 1-3 days. However, IDGIP is able to check for a company name whether it is similar or not.
STEP 2: FILING OF MEMORANDUM OF ASSOCIATION
A Memorandum of Association (MOA) must be filed with the Department of Business Development (DBD) in the Ministry of Commerce and must include the name of the company that has been successfully reserved, the province where the company will be located, its business objectives, the capital to be registered, and the names of the promoters. Although no minimum capital requirements have been set up, the amount of the capital should be adequate and reasonable enough for the intended business operations.
STEP 3: CONVENE A STATUTORY MEETING
A statutory meeting is convened to make all the appointments once the share structure for the company has been defined, the Memorandum of Association and the Articles of Association are approved, the Board of Directors is elected and an Auditor is appointed.
STEP 4: REGISTRATION
The Company Directors must submit the application to establish the company within 3-months of the date of the Statutory Meeting, together with Company registration fees.
STEP 5: TAX REGISTRATION
After the company registration and within 60 days of incorporation or the commencement of operations, you will need to apply for and obtain a company corporate tax ID card from the Revenue Department.
STEP 6: OPENING A COMPANY BANK ACCOUNT
Companies can open a corporate bank account in Thailand after they have been officially registered. Which bank and branch, what type of accounts the company requires, and who will sign are some of the information needed to open a company bank account.
Hopefully, this information would be beneficial for your business planning in Thailand.
If there are any questions and suggestions, IDGIP willingly provides advice and helps planning your business.
Contact:
Phone: +662-011-7161 – 6
E-mail: [email protected]
Line : @idgthailand
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