There are many reasons why a foreigner wants to start a
business in Thailand. Starting a Thai company can help you buy property
overseas, live in Thailand, or work in Thailand. The Thai government wants to
set up the first company to build new businesses and contribute to the Thai
economy. For some reason, many foreigners want to start a business in Thailand.
The process is summarized in this article but offers a brief
overview of the creation of a Thai company. Numerous steps are written in Thai,
which should be supported by supporting documents and sent to various Thai
authorities. It is recommended that a foreigner who undergoes this process
should seek help from an educated and experienced English or Thai lawyer.
Thai company registration for foreigners
One thing has to be clarified. Most of the shares of a Thai
company must be owned by a Thai citizen unless it is present in the Investment
Council (BOI). This means that foreigners can own only 49% of a Thai company.
If a foreign trade license is granted, it can be increased by 49% or exempt for
certain types of activities. Foreign trade licenses are usually those of
foreign companies that do not compete with Thai companies.
There are several types of companies. The most common form
of a company is a limited company. In a private equity firm, shareholders have
limited liability, while directors have limited liability. Limited private
companies require at least three promoters. Promoters may be Thai or foreign,
but they must be natural (not legal) and have their shares in the company.
The process begins with the promotion of the company name in
the Business Development Department. Advertisers must submit at least three
names that are not identical to the available resources and do not violate any
of the existing ministry regulations. DBD selects one of these three names.
In addition, advertisers should send a note of association
to the Department of Business Registration. The memorandum includes the company
name, number and value of the shares and the name of the promoters. Following
the submission of the memorandum, the statutory meeting will be convened to
determine the details of the operation, appointment of directors and payment of
promoters' fees. If a company has foreign employees, there are minimum capital
requirements and requirements for working in the company.
Within three months of the statutory meeting, the directors
must apply for the company registration. When submitting shares and
shareholders, a payment must be made for the shares of the new company and all
registration documents must be signed. New companies that are responsible for
the corporate income tax must obtain a tax certificate at the Department of
Revenue within 60 days of starting a business.
Once registered, the company can begin the process of
obtaining business licenses and start a new business. The new company has to
calculate revenue and expenses in accordance with the Civil and Commercial
Code, the Income Code and the Debit Code. There is a financial need for a
company to maintain its status.
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