Company Registration
Halt | November 17, 2022 | 0 Comments

Things You Didn’t Know About the Company Registration Options in Thailand

Running a Thai business is less complicated once you get started. All you need to do is to comply with the process of company registration. This might be different from local businesses but worth trying. Foreigners can have access to any type of business structure by meeting the set standards.

Companies like MyThaiCompany offer company registration in Thailand to assist foreigners to start a business. It is better to have a companion in running a business abroad to understand the system. It demands a few steps to enlist your desired type of company in the country. Besides, the governing bodies can help you throughout.

Why Thailand?

Thailand is known for its rich tourism and amazing culture. It is also a good place for foreign investors due to its growing economy. There are hundreds of new businesses established each year which is a huge proof of success that awaits you as well.

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First-timers in business may find it difficult to get started. However, the country will provide easy ways to conduct a business delivering the best possible results quickly. These include a high return and a wider market for your business.

The Asian market is huge and that can ensure a great profit in the near future. This also benefits foreign investors planning to set up a business in Thailand.

Types of Business Structures

Choosing the right business structure can be complex for beginners. Each one has benefits to offer and is suitable for both local and foreign investors. It includes:

1. Private Limited Company

With a private company, you can take advantage of limited liability. Shareholders are not obliged to pay any debts but are only liable according to their shared capital.

This business structure is a common choice for foreign investors. It will operate with three shareholders and a director of any nationality. Nevertheless, the shareholders can be foreigners which have the right of less than 50% of the company share.

Private companies can be fully acquired by foreign investors through BOI promotion.

2. Partnership

The partnership is made of two or more persons who can run a business together. There are no separate entities and tax payments as each partner must pay. Earnings are allocated to each partner based on the capital shares or equally, depending on the agreement.

This also applies to foreign investors that plan to form a partnership. It is favorable for larger business ideas because of the said arrangement.

3. Foreign Company

In the case of setting up a foreign branch in Thailand, there should be a parent company. The main agenda is to expand the market in another country like Thailand. It will not be a separate entity from the parent company even though the business is 100% governed by foreigners.

All the debts incurred by the foreign branch are shouldered by the parent company.

4. Regional Offices

Company Registration in Thailand

Last but not least, is a business structure that does not operate for an income. Its main focus is advertising and market research to extend target audiences. Regional offices are not allowed to operate the business resulting in revenue. It is very limited compared to the previous company registration options in Thailand.

Step-by-Step Company Registration

Businesses in Thailand are evolving not just in number but in how fast the registration process is. That is why most foreign investors choose Thailand to start a new life.

1. Company Name

After foreign investors recognize which business structure fits them, they can think of a company name.

It must be unique and have no equals by name to easily register. Avoid putting terms like investment, on the company name for a faster process.

Go to the Department of Business Development and file the necessary documents to obtain your desired company name.  Wait for the response as to whether it is approved or rejected.

2. Memorandum of Association

The company owner will file an MOA to finalize the agreement. It is composed of the company name subject to approval, office address, objectives, and all the names of shareholders and directors together with their shared capital.

It costs 50 baht to submit the said document via DBD. This pertains to foreign entities with 100,000 baht of capital. Before filing MOA, double-check the papers to avoid any hassle of repeating the process.

3. Statutory Meeting

After registration, the statutory meeting must take place. This is to fix everything before launching the business.

During the meeting, people in the higher position have to elect who can handle specific duties. It includes the director, auditors, and other helpers in operating the business. The majority of votes are vital in the election.

4. Get Started

the Company Registration

Finally, at least three months after the statutory meeting, you can register the company. Work with the Ministry of Commerce to speed up the process.

Company directors will sign documents to verify shareholders’ capability. So then, you can begin running the business without any risk.

Final Thoughts

To sum it all up, Thailand has a wide range of companies to choose from. The said business structures may require different agreements to operate efficiently but the same step-by-step registration process. Choose which one is most suitable for your skills and knowledge in running a business. One thing for sure is that you have not been mistaken to pick Thailand to pursue a foreign entity.

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