Thailand has a lot of potential for business, and establishing a company there opens up a lot of doors. You may run a business, recruit staff, and even buy real estate with your own firm. The best part is that the criteria for forming a Thai company are simple and not overly burdensome. To start a business in Thailand, there are a few requisites that you must take care of. This article discusses on all in detail.
If you have all of your documentation in order, you can register a Thai corporation in less than two weeks. The stages for starting a business in Thailand are outlined below.
Step 1: Find a Trustworthy Service Provider
Working with a qualified legal practitioner and accountant is critical to ensuring you meet all of the legal requirements for forming a Thai company. This is especially important if you are a foreigner wanting to establish a business in the country. You may also want to seek out trustworthy partners who can assist you in dealing with local vendors to avoid being taken advantage of.
Step 2: Choose Reliable Shareholders and Directors
Your firm must have three or more shareholders in order to be registered in Thailand. Also, foreigners should not own more than 49 percent of the company. As a result, if you are a foreigner, you need to designate at least one Thai shareholder who owns at least 51 percent of the company.
Your company will be classified as a foreign business if it is owned by foreigners in excess of 49 percent. You’ll need to apply for permissions and licenses under the Foreign Business Act in that scenario. This is frequently a prerequisite for organizations who are based in other countries but want to open branches and do business in Thailand.
You’ll also need to choose at least one director who will sign formal documents on behalf of the firm. To minimize unnecessary inquiry of your application as a foreigner, it is best to hire a Thai national to act as a director. Once the firm is fully operational, you can replace the directorship.
Step 3: Pick Your Company Name
You must rank three potential names in order of preference. Avoid names that are too similar to existing enterprises, are deceptive, lurid, overtly political, or contain phrases associated with the monarchy. Such names are likely to be rejected.
That is why you should have two alternate names in case your first option is rejected. After you’ve decided on a name, you’ll need to register it with the Department of Business Registration. Your business name should be approved within three days if everything is in order.
Step 4: Rent an Office or Business Premises
A physical address is required for a business. Authorities may want to examine if you have enough space for your registered employees before approving your business. Finding a location that has already been used as an office or commercial premises is recommended.
This step is crucial because the landlord must produce documents, which some landlords may be unwilling to provide. If you’re renting a space that hasn’t previously been used as a company location, check sure your prospective landlord can supply any necessary documentation. You should look for another location if this is not the case.
Step 5: Obtain the necessary permits and licenses
There are various licenses that you’ll need to obtain, depending on your business objectives. These may include:
- E-Commerce License
- Food License
- Cigarette License
- Factory License
- Entertainment License
- Import License
- Import-Export Card
As a foreigner, you must obtain a work permit and a tax ID to be able to work in Thailand. Once you set up your company, you can have your company apply for a work permit on your behalf.
For any type of assistance or required service to start your company in Thailand, email us at [email protected]. We provide support for both Thai and non-Thai individuals to start their business in Thailand with a same-day bank account opening facility. We are one of the leading full-service law and accounting firms in Bangkok, Thailand.
