Lovely! That’s quite a good idea to start with. Just so you know a foreign business must have its 51% share reserved for the Thais. Having said that there are ways to secure a foreigner’s interest in the business too. So, fret not! For now, let’s have a look at the ways to start a business in Thailand;
Reservation of the Name
The company’s name should not be similar to any other Thai companies. The Business Development Office’s guidelines assist in deciding a name for your company. However, the approved name will be valid for thirty days without any extension.
Memorandum of Association
The document should include a reserved name of the company, its business objectives, a name of the promoter, the province where the company will be situated and the capital for registration. The Memorandum of Association is typically filed with the Business Development Office. The capital should include the par value alongside the number of shares. Nevertheless, the authorized capital is partly paid, but it must be issued fully. Even though there isn’t any minimum capital requirement, it should be at least sufficient for the business operation.
The Statutory Meet
Upon elaborating the share structure, a statutory meeting is convened, wherein the articles of incorporation are approved. Also, the Board of Directors is decided. Further, it is confirmed that 25% of the par value of the subscribed share is paid.
Company Registration
The directors should submit their company’s establishment application within the three months of the Statutory Meeting. As for the fees, the amount for company registration is 500 baht each 100,000 baht of the registered capital. However, the minimum fee is 5,000 baht, where the maximum is up to 250,000 baht.
Tax Registration
Businesses should obtain their tax I.D. card as well as the number for the company within sixty days of the incorporation from the Thai Revenue Department. Companies earning 600,000 baht or more per annum should register for VAT.”
If you have all your papers right and correct documents have been presented at the office, then it should not take much time to establish a company. For your information, you may need to translate the documents to Thai or English.
