Once you’ve decided to establish a business in Thailand, the following step is to set up a legal company to carry out your plans. Company Registration in Thailand is under the regulatory framework of the Department of Business Development in Thailand. This will allow you to conduct business legitimately in Thailand. Furthermore, it will help you in producing tax invoices/receipts, recruiting workers, and opening a bank account.
We will go over how to register a Thai Company Limited in this article. You should read our other articles Company Registration in Thailand for a deeper understanding. It will be helpful for you in your process of company registration by majority or 100% shares of foreign ownership.
WHAT IS A LIMITED COMPANY REGISTRATION IN THAILAND?
Thai Company Limited refers to a company limited in which Thai owns the majority of the shares. In other words, Thais should possess 51 percent or more of the total shares.
Even though the firm has solely foreign directors and no Thai directors, it is still referred to as a Thai Company Limited if Thais possess the majority of the shares.
If a foreigner owns a majority of the shares in the Company Limited, the company must apply for and receive a Foreign Business License (FBL).
THE INFORMATION NEED FOR THAILAND COMPANY REGISTRATION
To be ready to register your business in Thailand, you must gather the following information:
Company’s name
You must provide the company name in Thai and in English.
House Registration of the Company’s address
This is the company’s registered address. You have to provide a virtual address to initiate the process. If you don’t have an address yet, you can request that our law office give one for you temporarily so that you can register.
Registered Capital
You can inform the lawyers about the amount of registered capital you require.
Please keep in mind that if you need to apply for a working visa for a foreign director or other foreign workers after forming a Thai company, the Labor Department will require a minimum of 2 million THB in fully paid-up registered capital for each work permit.
Copy of Thai ID card or Passport of the shareholders
To start a business in Thailand, we need at least three shareholders.
Please note that at least one Thai shareholder must own 51 percent of the total shares of Thai Company Limited.
Copy of Thai ID card or Passport of the Director
To sign on behalf of the firm in Thailand, at least one authorized director is required. This director could be Thai or from another country. However, you should keep in mind that if you need to register for VAT, Social Security, a Work Permit, or any other permission, your firm must also have a Thai director.
Because the foreign director does not yet have a work permit after forming the company. As a result, when the firm applies for VAT, Social Security, a Work Permit, or any other license, the government office will not allow the foreign director to sign any document on the company’s behalf. As a result, the corporation must request that the Thai director sign at this time.
Bank Letter of the Thai shareholder
If the company is formed with a foreign shareholder or director, the Thai shareholder must present a bank letter as proof of funds. The amount on the bank letter must be sufficient to cover the joint value they are holding.
The foreigner’s name might then be added or changed later on in the organization.
STEPS FOR COMPANY REGISTRATION IN THAILAND
Here are the steps to forming a corporation in Thailand: Thailand Company Registration:
Step 1: Reserve the company name
The lawyers will reserve the name you submitted with the Department of Business Development using the name you gave. After you’ve submitted it, it’ll take about 2-3 business days for it to be approved.
Step 2: Prepare an application form
The lawyer will prepare the application for Thailand Company Registration in around 1-2 days. The shareholders and directors will sign the application form once the preparation is complete.
Step 3: Limited Company Registration in Thailand with the Department of Business Development
All applications to register a Thai Company Limited will be submitted to the Department of Business Development by the lawyer. This process will take one day, and we will have all of our incorporation documents certified by the registrar. The government charges 5,500 THB for forming a Thai company and roughly 1,000 THB for issuing relevant documentation.
Step 4: Translation of Thailand Company Formation documents to English
Because Thai is the official language of the kingdom, therefore we will receive all Thailand Company Formation documentation in Thai. As a result, we must translate it into English for our clients’ benefit.
ACTIVITIES AFTER COMPANY REGISTRATION IN THAILAND
Some businesses may require additional activities or processes after forming a limited company in Thailand. You should seek legal advice for the specific action that your company requires. Here are some tasks that you should discuss with your lawyer to see if you need to do them.
VAT Registration (Valued Added Tax)
Firstly, if a company has to apply for a Work Permit, it must first register for VAT. Because it is required by the Labor Department when filing for a Work Permit. When the company’s annual revenue exceeds 1.8 million THB, it must register for VAT. Please keep in mind that some businesses, such as logistic companies, are excluded from having to register for VAT.
Social Security Registration
When a business hires at least one person, it must register for Social Security and contribute to the fund on a monthly basis.
Open Bank Account
The company can open a bank account in its name and apply for Internet banking to make financial transactions more convenient.
Applying for Business License
Some businesses in Thailand are unable to operate once they have been established. Before you begin operations, you must obtain a license in the company’s name. Travel and tour companies, hotels, and restaurants are just a few examples. For more information, please contact our attorneys.
Applying Working Permit for foreign director and employee
If the Thai firm you’re just starting as a foreign director or employee, the company will need to file for a work permit so that they can legally work for the company.
We strongly advise you to read the article below in order to fully comprehend the rules and procedures governing Thailand Work Permits.
DUTY OF THAILAND COMPANY
Even if your firm has not yet begun operations, your Thailand business must perform the following duties:
- Submit a half-year report or what we call Phor.Ngor.Dor.51 form
- Submit Yearend and Auditor report
If the company started the operations already, here are some activities that may need to be taken:
- Submit monthly VAT Report
- Submission of monthly withholding tax report
- Submit Social Security Contribution report
All of these duties can be done by a professional accountant.
Conclusion: Thailand Company Registration
Thank you for taking the time to read our Thailand Company Registration requirements. We hope you now have a better understanding of the structure of a Thai Company Limited and the steps involved in founding one. If you have any doubts or questions, please do not hesitate to contact our firm.
We have many years of expertise assisting foreigners in starting businesses in Thailand, and we are always here to assist you in doing so as well. We value the idea that our client’s success and progress are also our success and growth. As a result, we’d like to be a part of your business success story in Thailand.
To pursue your endeavor of Company Registration in Thailand, mail us at [email protected] for expert support and guidance.
