Company Formation in Thailand
Updated on Saturday 13th July 2024
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A country with an export-based, fast-growing economy, Thailand is often chosen by foreign entrepreneurs who want to set up a company. Our experts in company incorporation can offer you complete guidance in order to open a company in Thailand in the shortest amount of time.
Types of companies in Thailand
An important step that has to be completed by a foreign investor when wanting to open a company in Thailand is deciding on the type of company that best suits his/her interests. Some of the companies that can be formed in Thailand can be found hereunder:
- the partnership;
- the private limited liability company (LLC);
- the public limited company;
- the joint venture.
A foreign entrepreneur can also opt for creating a dependent branch office or a representative one for an existing parent-company overseas. The most popular legal entity amongst foreign investors is the limited liability company and the demands to be met are as follows:
- minimum 3 shareholders;
- at least 1 director;
- minimum capital share is $1;
- 100% foreign-ownership is allowed.
Although the Thai Civil Code provides the same rights to starting a business for both local citizens and foreigners, restrictions concerning ownership may appear in certain economic sectors. Where this is the case, foreigners may incorporate a company with maximum 49% foreign ownership.
This means that the foreigner will need to associate in a business with Thai businessmen, who will hold the majority of shares (51%). For assistance in forming a company in Thailand, please address our company registration specialists.
Steps in registering a company in Thailand
The first phase consists of choosing and reserving a name for your company at the Department of Business Development. Then you need to pay 25% of the registered capital, amount that has to be deposited in a bank.
The third step in registering a company in Thailand is obtaining a corporate seal. The cost of the seal varies on how urgent it has to be ready and this procedure can be completed in as soon as two days.
Then you have to register the company as a legal structure, submit the company’s work regulations and obtain the approval for the memorandum of association. All this will be completed at the Ministry of Justice, at two different departments and you have to submit some documents, such as an application form, a certificate for the name reservation and a list with the shareholders.
This procedure, along with the others, can be easily carried out on by one of our company formation agents. Last, you should register with the Revenue Department for VAT (value-added tax).
Is it necessary to apply for business/investment visas in Thailand?
Yes, foreign businessmen who want to start a company in Thailand need to apply for appropriate visas in order to be able to develop a business activity or an investment. Some of the business visas used for this purpose are the following:
- the Non-Immigrant B Visa – suitable for investors who want to open a business in Thailand;
- the Non-Immigrant B-A Visa – addressed to foreigners who want to start a company here and to invest in a Thai business;
- the Non-Immigrant IB Visa – addressed to foreigners who participate in investment projects developed under the supervision of the Board of Investment of Thailand.
These visas are issued for temporary residency (for instance, the first 2 visas can be issued for a period of maximum 1 year). However, investors have the right to apply for a visa renewal. The visa validity can be influenced not only by the visa type selected by the investor, but also by the value of the investment made.
For example, foreigners who open a company in Thailand and will invest minimum THB 2 million will receive a visa valid for a period of 1 year, while those who will invest more than THB 10 million will be granted with a visa valid for 2 years.
Please know that foreign applicants must also pay appropriate visa processing fees. According to the Ministry of Foreign Affairs of the Kingdom of Thailand, for the B visa investors must THB 2,000 for a visa issued for 3 months (single entry visa). For the 1 year B visa, the fee is THB 5,000 (the document is issued as a multiple entry visa).
Opening a corporate bank account in Thailand
A mandatory step concerning the process of company registration in Thailand refers to the set up of a corporate bank account, which is necessary for depositing the minimum share capital and for the company’s daily transactions, once it starts its operations.
The process can take more than 1 week, and it will be completed after the investors have managed other registration steps, such reserving the company’s name, establishing a registered address, drawing and signing the incorporation documents, etc., because the bank will need information on all these company data.
This is a standard procedure that can be found in any other jurisdictions, including in offshore jurisdictions, where investors will need to open an offshore bank account. However, in countries where offshore company formation is possible, the bank account may be set up in a shorter amount of time, but differences can appear from one country to another.
The process of company registration in Thailand cannot take more than two weeks and we can help you with all the procedures needed and ensure that your company is operating as soon as possible. We can also assist you in establishing businesses in many other countries as well, so do not hesitate to contact our experts in company incorporation.