Opening a manufacturing company in Thailand is an easy task if all instructions are followed and correct help and guidance are received from some legal firm. In fact, it is a far easier task to start a manufacturing company than a domestic business in Thailand.
For foreigners who wish to open a manufacturing company in Thailand, the land is required for the setup. For that, they can either buy land or take one on the lease. They also have the option of buying an already-built factory. But for a company that has complete foreign ownership, it is difficult to get hold of the land. The process of acquiring freehold land becomes easier when the business is promoted by the Board of Investment. Another way of going about it is by setting up the factory on one of the public industrial estates. These estates are developed by or in partnership with the Industrial Estate Authority of Thailand (IEAT) which is a part of the Ministry of Industry.
Easy steps to start a manufacturing company/own business in Thailand
Step 1: Company Name Reservation
One should come up with a unique name for the company in Thailand for foreigners. The company name cannot be duplicated. Thus, it is important to ensure no other organization holds the same name. But the approved corporate name will only be valid for 30 days. Also, as per Thai government rules, a few words are prohibited as a part of a company name.
Step 2: Filing of Memorandum of Association
Once the company name gets approved, the Memorandum of Association needs to be filed with the Business Development Office or Commercial Registration Department.
Step 3: A Statutory Meeting to be convened
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 discussed and approved. Before this meeting is held, the share structure also needs to be defined.
Step 4: Company Registration
Company registration application needs to be submitted, within 3 months of the statutory meeting, of the directors.
Step 5: Tax Registration
A tax ID card and a number for the company from the Revenue Department need to be collected for businesses liable for income tax, within 60 days of the start of operation of the company.
Advantages of being in association with the Industrial Estate Authority of Thailand
- A high standard of infrastructure and maintenance is prioritized
- The continuation of the industrial estate as an industrial estate and the maintenance services provided is ensured
- Doesn’t require an Environmental Impact Assessment (EIA), like other factories based in non-industrial estates
- IEAT is the provider of its own set of privileges that one can enjoy even if the business is not registered with the Board of Investment (BOI)
- Industrial estate lands are more expensive than those non-industrial estates. But the extra money reflects the advantages enjoyed by a factory due to the location and other privileges from IEAT.
The best thing about opening a business in Thailand is that there are organizations and bureaus ready to help and support the establishment, growth, and development of these industries. Finally, it is important to choose the right kind of industry to invest in where the country can also enjoy its benefits, and this in return will help the company acquire the backing of organizations like BOI and IEAT.
