Apart from being the second largest economy in Asia, Thailand, and its economy are growing rapidly. The economy consists of different sectors. One of them is the software industry. Due to highly skilled software engineers and easy access to raw materials, several software companies are choosing to set their foot in the Thai market. Post-COVID, the Thai Government is also focusing greatly on the development of the Digital Economy in Thailand. So, if you want to open a software company in Thailand, now is the time!
Easy steps to get your company started
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Company Name Reservation
There’s a need to come up with a unique name for the company. The company name cannot be duplicated. Hence, it is important to make sure no other organization holds the same name. But the approved corporate name will only be valid for 30 days. However, the Thai government rules prohibit some names that you can use for your company. There are many other regulatory and compliance necessities, to surpass which clearly, you will need a reliable Thai corporate law firm.
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Filing of Memorandum of Association
A Memorandum of Association needs to be filed with the Business Development Office or Commercial Registration Department. This can only be done once the company name gets approved. You should be conversant in the Thai language as most of the officials prefer Thai to be their language of communication.
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Convene A Statutory Meeting
Once the company name gets approved and the Memorandum of Association is filed, a statutory meeting is held where articles of incorporation and bylaws are approved. Prior to this meeting, the share structure also needs to be defined.
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Company Registration
After convening the Statutory Meeting, you have to submit the application on the very day of registration of the memorandum of association at the Ministry of Trade. Three months after the date of the Statutory Meeting, the registration application must be submitted. For any reason for the delay, you will have to provide a justification for the same. To avoid any such mismatch or delay in schedule, hire Thai professionals for company registration in Thailand.
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Tax Registration
A tax ID card and a number for the company from the Thai Revenue Department need to be collected for businesses liable for income tax, within 60 days of the start of operation of the company. You can also seek assistance from a reliable tax firm in Thailand.
Few concerns regarding the process of Company Formation
- If the company doesn’t operate on any kind of import and export, 51% of company shares should be owned by Thai nationals. Also, it is a mandate on the part of the company to have at least 3 Shareholders or Promoters.
- For a work permit, the company needs to have a paid-up Registered Capital of at least 2,000,000 Baht.
- Finding a registered office space is another difficulty foreign businessmen face in Thailand. Non-cooperative landlords add to the difficulty, further.
- Apart from the mandatory Import/Export license, a business involving import and export needs to have some additional licenses and permits to establish itself in Thailand.
- The company, like its name, also has to choose a Trademark that has to be unique. Duplication of the Trademark can delay the operation of the company.
- If the parent company is situated outside Thailand, an accounting report format is essential that must be approved by the parent company.
Owing to the benefits that a software company receives from the Thai market, the region is now mushrooming with tech startups. A few of the fastest-growing IT Startups in Thailand are Sertis, Zaapi, and Soccerspective.
Would you like to miss your share in the growing Thai market? If not, then please contact us today! Email us your business plan at [email protected] for seamless support in corporate law, accounting, taxation, and immigration in Thailand.
