Company formation in Thailand

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Company formation in Thailand – company registration of foreign citizens

Thailand is the best country in South Asia where you can set up a profitable business. That’s what statistics from previous years say. Due to this improvement, the Thai kingdom became open to encourage foreign entrepreneurs to invest in business here. The easy process to set up a business and the low cost of it captured the attention of people abroad. 

Just in a few years, thousands of new businesses appeared, most of them enjoying huge success in terms of popularity and profit. If you are also one of the foreign entrepreneurs looking for the perfect country to set up a new business, just create a solid plan for a company formation in Thailand

Do you already have one but don’t know where to start? We are happy to announce that we offer services for company registration in Thailand for foreign citizens! Stay with us to get an idea about the Thai laws you need to know before proceeding with the first steps in opening a business in Thailand.

How to open a business in Thailand as a foreigner?

When planning to do business in Thailand, you need to know from the very start what that means. There are many steps you have to take throughout this process of company formation in Thailand. If you are not familiar with Thai regulations and laws, this process will feel like a burden to you. But trust us, it can be more simple than in your home country.

Many foreigners succeeded in opening their businesses here, and you can do it as well if you consider our advice as a guide. We have a lot of experience in assisting foreign citizens with structuring and implementing their businesses in Thailand

You can trust that we are going to implement the best legal strategies at the most effective costs you will get to know. Having a corporate consultant on your side for company formation in Thailand will save you time and money. You won’t have to deal with documentation and Thai laws. We will be there to open doors for you and communicate effectively with the authorities.

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Company formation in Thailand

Thailand offers a wide range of business structures to foreign entrepreneurs. Therefore, they are free to choose the type of company that meets their needs and goals. Take a look at the most relevant types of company formation in Thailand and see what they suppose:

  1. Partnership

A partnership is a business form that is very similar to the Western partnership concept. That’s why many foreigners pick partnerships when setting up a business in Thailand. There are three types of business structures for partnerships and they are:

  • Unregistered ordinary partnerships
  • Registered ordinary partnerships
  • Limited partnerships
  1. Limited Company

Limited companies are the most popular among foreigners, being made up of one share capital divided into equal shares, the shareholders having limited liability to the shares held by them, and the unpaid payment amounts. There are also two types of limited companies: private and public. While the first one is governed by the Civil and Commercial Code of Thailand, the second one is by the Public Company Act.

When proceeding with company registration in Thailand as a foreigner, you will certainly select a limited company form for your business. Not only that it is the simplest option, but it also has many similarities with Western corporations.

Company formation in Thailand – other entities you can pick from:

  • Branch of a foreign company
  • Regional Office
  • Representative Trade
  • Foundations
  1. Joint Venture

A joint venture is a business structure that is described as an agreement made with a group of individuals to carry business together. Unfortunately, this company form is not entirely recognized as a legal entity by the Civil and Commercial Code, but as a single entity.

Look at what you have to do to open a business in Thailand as a foreigner:

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1. Register the name of your company at the Department of Business Development of the Ministry of Commerce.

– it can be done online if you are abroad or in person at the nearest office.

– you need to choose an original name that is not identical and does not even resemble another company name in Thailand.

– your company name shouldn’t contain words like “investments”, so better check the list of words you are not allowed to use on the Ministry of Commerce website before.

– the name of your company must end with the word “Limited”.

– as advice, make sure you submit at least three company names when making the registration.

– after validation, the name of your company will be available for 30 consecutive days without permission to extend its validity.

 2. File the Memorandum of Association

– before this, you have to decide what form of Thai companies you are going to register. Check below the most recommended form for company registration in Thailand as a foreigner.

– depending on your company form, you will have to find the promoters of the company. The Thai kingdom doesn’t allow foreign citizens to conduct business without involving at least one Thai native.

For the Memorandum of Association, you have to make a special agreement with your promoters, where you should include the following information about your company:

  • Company name
  • Company location
  • Company objectives
  • Declaration where it is mentioned that the liability of the shareholders will be limited
  • The amount of shares capital you plan to register for your business
  • Personal information of your promoters (only individuals are allowed)
  • List the number of shares subscribed to by each promoter.

3. Prepare the Statutory Meeting for company formation in Thailand

– can take place immediately after registering the Memorandum of Association

– during the Statutory Meeting, you and your promoters have to make the following decisions regarding your business:

  • Adopt the rules of the company
  • Establish the amount of payment for your promoters
  • Establish the number of shares to be issued
  • Appoint the directors and auditors and establish their authority in the company

– these decisions will be considered valid only if the majority agree with them.

4. Company registration in Thailand for foreign citizens

– you can apply for registration at the Ministry of Commerce on the same day with the Memorandum of Association if you provide that the Statutory Meeting has been convened.

– the limit date of applying for company registration shouldn’t exceed three months from the date of the Statutory Meeting.

– Your application must contain the following documentation:

  • Exact number of shares
  • Proof of the amount of money already paid on each share
  • Documents with personal information of the directors
  • The company’s location documents

    Read more: Business Operating License in Thailand

5. Register for corporate income Tax and VAT

– from the moment you register your business in Thailand, you have 60 days at your disposal to obtain a company corporate tax ID from the Revenue Department

– if your company has a turnover bigger than 1.8 million THB annually, then you need to also register for VAT.

If your business is involved in the following activities, then you are not subject to VAT, but you become subject to the Specific Business Tax:

  • Banking services
  • Financial services
  • Life insurance services
  • Sales of security

Read more: Guide to VAT registration in Thailand

6. Social Security registration

– if you have more than one employee, you must register for Social Security at the Social Security Office

– you have 30 days to do so from the moment you hire your first employee, otherwise, you risk receiving a fine or being imprisoned

– if you have foreign employees, they also have to make a registration at the Social Security Office

– monthly, you have to send a contribution of 5% of every employee’s salary to the Social Security Office

Get help from J&E Concierge Pattaya for company formation in Thailand

If you have any questions about company registration in Thailand as a foreigner, let us make it clear to you! We will help you to choose the type of business structure that suits best your business. Then, we will assist you through the process of registering your business and company formation in Thailand. Our team of professionals will make sure everything will go smoothly, legally, and with no problem. 

So you can enjoy as fast as possible the benefits of having a business in the beautiful land of Thailand. They are natives with impressive English skills. Therefore, we can create a channel between you and the Thai authorities. We will keep you up-to-date with every move your business takes.

We are J&E Concierge Pattaya, a specialized consultancy agency for foreign citizens who come to Thailand. Every day we are improving our services for people like you and offer the best services at the correct price. Our location is in Pattaya, Thailand, but we can provide you with our services in any region of Thailand. Over the years, we helped thousands of foreign citizens to set up their businesses in Thailand. Now, it’s time to help you with your company formation in Thailand! Get in contact with us so we can inform you about what you need to know.

Read more useful articles:

Open a small business in Pattaya, Thailand

Introduction to Thailand’s accounting system

Food Business in Thailand Pattaya

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