Breaking Down the Steps and Costs of Company Formation in Thailand

Trade policies, business-formation procedures and laws of Thailand have drastically improved over the years. Paving the way for a stable economic growth, these improvements now attract several foreign investors to start their businesses in the country.

Today, several entrepreneurs are adamant to introduce new businesses or seek entry into niche markets. These entrepreneurs are looking for ways to easily register their company and start their business activities as soon as possible.

Before going to a new market, foreign investors need to have basic knowledge of the costs of forming a company and the registration processes. This blog will provide valuable insight on the necessary documents and the fees involved for company formation in Thailand.

Business Registration Overview for Foreigners in Thailand

It is important to have basic knowledge of the business processes of a country. In Thailand, all company documentation is in Thai. Hence, having a trustworthy Thai-English translator and a lawyer is a need, so that all documentation would be done properly.

There are only three business structures for foreigners in Thailand, namely, limited partnership, representative office and limited company. Each of these structures has its own benefits to cater profitability and security in accordance with your company’s goal. In addition, it is crucial to be prepared in acquiring legal documents for a streamlined process.

Documents and Costs in Forming a Company in Thailand

A comprehensive knowledge of what documents to procure will ensure a convenient registration process. Here is a list of documents to be submitted:

  • Articles of Association
  • Memorandum of Association
  • Application form and list of shareholders
  • New director form signed by each director
  • Declaration of Business Operation form
  • Company name reservation
  • Details of the offices and branches of your business

Do note that to register a business, there is a payment of at least 25% of the initial investment capital.

As for the government fees, those are relative to the amount of the company’s registered capital. For companies with foreign investors or employees, these are the things to be considered to know how much-registered capital the company should have and its corresponding government fees:

If a company has Thai majority shareholders and will hire a foreigner to work for it

The registered capital has to be at least Baht 2 million. For each work permit the company sponsors, it needs to Baht 2 million in registered capital. The government fee to set this up is approximately baht 12,000 plus Baht 6,000 for each additional million.

If the new company has foreign majority shareholders

At least Baht 3 million registered capital for each type of business operation in Thailand. In addition, with each Baht 3M capital, one work permit can be sponsored. The government fee to set this up is roughly Baht 18,000. Plus, the fee for acquiring a license to operate a foreign business is Baht 35,000.

Simplifying Your Offshore Company Formation Process

Forming a company offshore can be a daunting task. With so many governing laws in business, foreign investors definitely need to consult with a company formation expert. Moreover, registering a business in Thailand can be a challenge because all legal documents are in Thai. These professionals can help you to navigate through this language barrier and administrative work when setting up your company in Thailand.

Additionally, consulting an expert is an effective and cost-efficient way of registering an offshore business in Thailand. That way, business owners will be able to setup their business offshore in a relatively short span of time.

References:

Thai Company Registration Services, Siam-legal.com

Fees to set up a company in Thailand, Msnagroup.com

How to start a business in Thailand, Transferwise.com

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