Buying a shelf company in Thailand though seems to be a cheaper option than other options, let me tell you it may not be so. So you should incorporate a new company as you will need to change the shelf company’s structure. Moreover, according to your intended business in Thailand, that might cost you more.
But, generally to operate a new business in Thailand, you will need to establish a juristic entity that would commonly be a limited company. The incorporation will require reservation of the company’s name, but the name should not be similar to any. Once it is covered the next step would be filing the Memorandum of Association with the Commercial Registration Department.
How to Incorporate a Business in Thailand?
As for the final step of incorporating a business, it requires convening a statutory meeting. In the meeting, 25% of the value share must be paid. Additionally, the director must submit application to incorporate the company. Prior to this, to set a limited company in Thailand you must 51% of the shares must be with Thais. However, let’s go through the documents necessary for the same:
- Name of the company (please provide 3 names);
- 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) working for this juristic entity.
Additionally, you can set-up a franchise in Thailand, if a limited company is not what you want. A good company who offers the opportunity to partner with them must provide all sorts of support. This includes, operational assistance, training, ongoing supervision and spending power. However, like other options this too has its own restrictions and obligations. And some of those actually vary from one company to another.
Now that you know what is like to buy a shelf company, set-up a business or start a franchise, you are expected to make a wise decision. Just so you know the majority of the foreign entrepreneurs or investors chose to open limited company.
