Being a foreigner you are not eligible to have 100% ownership of your textile trading company in Thailand, which means 51% shares of the company must be owned by a Thai national and the remaining 49% must be owned by you. Also, under the Foreign Business Act, a private limited company must have at least 3 shareholders and 1 director.
Having said that, there are some businesses that may be able to have 100% ownership of the business. In that case, you will have to register your company under the Board of Investment. But if the security of your investment in the business is the main concern, then you can always opt for a Joint Venture Agreement.
However, to begin with the company incorporation process, you must have these documents with you;
- Name of the designated company (please provide 3 names);
- Registered address (in Thailand) for your company (please provide a copy of the house registration);
- Company’s objective (please provide full detail of your business functions);
- Shareholders Information:
- Copy of passport of your 3 promoters/shareholder;
- Share allocation of each shareholder;
- Directorship Information:
- Name of the Authorized Director(s);
- Copy of passport for each Director;
- Signatory condition of the director(s)
- The number of foreigners (non-Thai) that you expected to have been working for this juristic entity.
As for the incorporation process, the first and foremost thing is reservation of the name, which should not match with any existing Thai company. Once that’s covered, the Memorandum of Association should be filed with the Business Development Office. The documents that you will need are;
- reserved name of the company,
- its business objectives,
- name of the promoter,
- location of the company, and,
- capital for registration.
Next comes the statutory meeting. It must be convened to approve the articles of incorporation, followed by company registration, where the directors must submit their company’s establishment application. And this must be done with the three months of the statutory meet.
For your information, your company will need to register for tax, provided it earns 600,000 baht or more per annum, plus a trading license for your company.
