Known for being a tourist hot spot, Thailand has also become a hub for entrepreneurs and company owners due to its strong business potential. Continuous amendments to the country’s investment policies have contributed to its economic growth. Moreover, the Thai government offers various tax incentives to encourage foreign investors.

Located in Asia’s heart, companies in Thailand can enjoy trading opportunities with major markets such as India, China and the rest of the South-East Asian countries. As such, investors and start-up companies are flocking to Thailand to benefit from the country’s thriving economy.

To ensure a great business head start, it is important to overview the company registration process. Throughout the next sections, this article will give you an insight into forming a company in Thailand.

Steps to Company Formation Process in Thailand

When venturing into a new market, the first step to success is to research the registration process and policies. This will help in drafting an effective business plan.

Knowing about the business entities for foreigners and the business registration process is beneficial. This is to ensure a smooth company incorporation process. So, read on to learn about company registration in Thailand.

Types of Companies and Registration Flow for Foreign Investors

Generally speaking, a foreigner can choose three types of companies: Limited Partnership, Representative Office or Limited company. Limited Company is the most popular choice because there is no minimum required capital.

There have to be three shareholders to set up a company, of which one has to be a Thai person. Do note that it is important to have a non-immigrant B Visa to file for a work permit. This work permit is necessary for setting up a company in Thailand.

Here is a general guideline to the registration process of a company in Thailand:

Selecting promoters and corporate name reservation

For private companies, at least three promoters are required. The company name must not be the same or similar to that of other companies.

Filing Of Memorandum of Association

The memorandum of association includes the company name, promoters’ names, company’s location and company’s finance and business objectives.

Convene a statutory meeting

Once the share structure is set, a statutory meeting will be summoned where the articles of incorporation and bylaws are approved.

Registration

Promoters will be supplying the name and license number. This is also the phase where the registration fee has to be paid.

Tax registration

Companies that are liable for income tax must obtain a tax I.D and number within 60 days of incorporation or the start of operations.

Advice for Foreigners in Forming a Company in Thailand

Thailand’s unprecedented economic growth and large population have made it a strong emerging market. There is an abundance of opportunities that the business community is seeking to benefit from.

Launching a company in the country, the first step is to find a notable translator since all documentation is in the Thai language. For this reason, consult an expert from a trustworthy company formation agent. These experts can provide reliable advice about the most suitable business vehicle for your company and make the business registration process easy.

An expert’s advice is a brilliant investment that can give a company an astounding head start.

References:

6 Reasons Why You Should Invest In Thailand, Konradlegal.com 

Starting a Business in Thailand: A 12-Step Beginner’s Guide to Law, Registration, Shareholders, Capital Requirements & Tax, Thethailandlife.com

The World Bank In Thailand, Worldbank.org