Starting a business in Thailand is full of incentives. A lot of foreign entities have experienced success in many ways. However, it takes a long process to finally establish a private company in Thailand from completing the documents to registration. There is more you need to know to ensure you are investing in the right path.
This article consists of a comprehensive guide that will help entrepreneurs. FAQs are added at the end of the post to make things clearer for the readers.
Company Registration For Non-Residents
Thailand has a set of requirements particularly for non-residents planning to set up a business. It is crucial to get familiar with the rules and standards to better take advantage of the incentives. No matter how good your business idea is, if none of these requirements are met, it won’t be granted.
- Foreign entities may prefer to self-register or work with a professional firm, to begin with.
- Operating a business abroad will not guarantee you a work permit but only a tourist visa. This applies to short-term company matters.
- Moving to Thailand requires a non-immigrant type B visa and a working permit. This will allow a business operation to commence.
In short, applying for a visa and work permit is necessary when visiting Thailand. They play a vital role in running a limited company for legal purposes.
A Guide For Company Registration In Thailand
It takes only three steps to complete company registration in Thailand. Here are the following:
1. A Company Name
Business ideas are limitless, however, picking company names can be hard. That is why it is the first step not to lose your chance to use names. Wait for up to two days whether the company name is approved or rejected. If rejected, request another set of names.
Double-check the spelling of your proposed business name to ensure faster feedback. It should not be contrary to Thai’s good morals and must be easy to pronounce. Names with the word, such as leasing and agency, are subject to more review for approval.
The company name will be valid within 30 days and should be extended for another month of use.
2. Completing Documents
Thai companies need to comply with the following documents:
- Signed ID Cards of shareholders, promoters, and witnesses
- Company Name and Description
- Company Location
- Bank Certificate
- Incorporation Document (If engaging with a professional service firm)
3. Company Registration
When every document is ready, you can register a business in Thailand within a day. Except when the authorities demand added paperwork coming from the directors.
They will return to you the documents upon approval. Some officers may request another working day before they release the papers. The incorporation documents shall be translated into English for convenience.
Upon registration, foreign entities will pay a government fee of 6,500 baht to get hard copies of certificates. See online the complete list of documents.
Things To Do After Company Registration Approval
Opening a Thai bank account is the next step after company registration. Foreign businesses can opt between corporate and local banks, wherein the latter requires a work permit to open a bank account. It is best to discuss with the bank officer what kind of bank account would suit your company.
Frequently Asked Questions (FAQs)
1. How Much Is The Minimum Capital Needed?
Thai companies can operate with at least three shareholders and each must contribute a 5 baht capital. Therefore, foreigners can start a business in Thailand with 15 baht of minimum capital. It is a limited company and when it generates income, the shareholders will have the right to share equal amounts.
2. What Is The Connection Between Capital And Tax Payments?
The main reason why foreign entities are urged to invest only a minimum capital is to reduce tax payments. Tax incentives vary depending on the generated income. For example, corporate income tax ranges from 0, 15, and 20 percent, while the special tax rate is 3.3%.
3. Is It Necessary To Buy A Place To Register As The Company’s Address?
The law of registration permits non-residents to operate a business without owning a place. They can rent an office, as long as it comes with consent.
4. Can You Change The Company Name?
The one registered in the memorandum of association is the English name and not the foreign identity. Changing the business name is possible by sending a request letter to the authorities. This name will additionally appear to the public.
5. What Are The Requirements To Make Companies VAT Registered?
Regardless if Thai companies are VAT registered or not, they are free to operate. Yet, there are factors that you need to consider if the business should register or not.
The best example is when the non-resident plans to use its condominium address for company registration. This does not apply to VAT registration unless one of the set conditions is met, like earning 8 million baht annually.
Understanding company registration in Thailand takes a lot of things to consider. Hence, learning the step-by-step process and working with the experts will assist you throughout. Take note of the necessary documents that need to be signed. This applies to foreign entrepreneurs who once yearned to do business abroad. It may require lots of effort and capital to get started but the benefits thereafter are worthwhile.