Top Three Benefits of Setting up a Dormant Company in Thailand
Are you actually planning to set-up a dormant company in Thailand? Have you spilled this business idea to anyone yet? If yes, then I’m sure you have come across so many frowning eyes by now. But then there are entrepreneurs who in the past have begun business in Thailand by setting up a shelf company. A dormant or shelf company refers to any non-trading entity that is not yet registered in the Social Fund system.
It is understood that the majority of the companies trade actively, which is why individuals who don’t understand the concept of having a dormant company may initially stop you from setting up one, but there are many advantages in keeping your company shelved. Although these companies do not maintain VISA for the foreign directors, they are enough to have a corporate bank account, raise capital and obtain import or export license. In fact, you can receive payments on its name, advertise and book a website domain.
Let’s take a look at the reasons why even multinational corporations find a dormant company in Thailand as an effective and legitimate business tool;
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Set-up a Company for Future Use
Eureka! And suddenly you have a business plan, what to do next? With the option of setting up a dormant company, you need not think much. Open up one and then you can think about finding partners and recruiting employees. Having a company that is ready to use will give the investors ample time to place bids on projects. Furthermore, your business is likely to gain a valuable sense of maturity.
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Protection to Your Intellectual Property
Having your company formed in advance will give you the competitive edge to choose an exclusive name, whereby preventing your competitors to do so. A valuable name is worth registering in order to safeguard it. Also, to protect your brand specifics, it is equally important to register the slogan and logo at the Bangkok Trademark Office.
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Reduce Maintenance Costs
Instead of having a dormant company if you wish to take the other route that is applying a work permit for the director, then be ready to pay legal expenses for work permit and visa application or renewal, make payments to full-time Thai employees, register VAT, hire an accountant to make VAT returns monthly and submit monthly withholding tax and much more. But with a dormant Thai company to go with you will have to maintain only annual accounting and virtual office rental.
Besides, your shelf company can be used as a front in other investments. However, if at any point of time you don’t want to continue with it, you can always close the company and form another.
