Company Registration in Thailand is a simple procedure, but you must make some smart decisions along the way. The government provides a variety of incentives and assistance to foreign investors to help them run their businesses smoothly.
Department of Business Development (DBD), Ministry of Commerce, Thailand oversees the full company registration procedure. Additionally, they can assist new enterprises in meeting relevant compliance criteria.
Before Company Registration in Thailand
For your Company Registration in Thailand, you must learn about the various influential factors for your decision-making. Furthermore, having sufficient understanding in the subject can help you save a significant amount of time and money.
We’ve compiled a list of some of the most significant factors to consider before registering a business in Thailand:
Partners, Directors or Owners
If you want to be a sole business owner, you can set up a sole proprietorship. You will have complete freedom to make all required decisions with this form of business. It is a smart idea to create an LLP in the country. However, this is possible only if you have a group of two to twenty experts with complementary skill sets. A private limited company, on the other hand, is the finest option for a group of 1 to 50 experts.
Investment Volume
You may have to make an initial investment in the business. The amount of investment depends on the activities and operations you aim to oversee. If you wish to start small, a sole proprietorship is a good option. However, once your firm grows, you may change it to a private limited company.
Category of Liabilities
It’s essential to consider that, based on your current business structure, you may have various liabilities. Members of an LLP or a sole proprietorship are generally limited in their liabilities. Whereas, the shareholders of a private limited business are liable for all of their investments in the company’s stock.
Taxation Policies
Thailand’s most recent guidelines says that a private limited business must pay corporate tax of 0-17% on taxable income. It is not necessary for the company’s owners and shareholders to make any payments. Whereas, owners of sole proprietorship firms must file personal income tax ranging from 0% to 22% of the taxable income.
Expansion Funding
According to reports, private limited companies are more reliable to investors, financial institutions, and banks. It makes it easier for them to raise funds for expansion and growth of linked activities. However, in the case of a sole proprietorship, credibility is entirely dependent on the proprietor. Whereas, in the case of an LLP, the members of the board takes the influential stance. Due to a lack of funds, such businesses frequently struggle to extend their operations.
You’ve now covered all of the fundamental aspects of starting a business in Thailand. This knowledge could help you lead operations more confidently. After considering these factors, you have to focus on these and act likewise. It is mandatory, so that none of these crucial elements ever creates hurdles in the continuity of your business. For this, you must consult with a reliable and popular law firm in Thailand dealing with company registration.
After Company Registration in Thailand
Now let us take a peep into what to do after company registration in Thailand. Irrespective of the type of business, you must register your company with the Department of Business Development (DBD), Ministry of Commerce of Thailand. Local service providers and government authorities can give you more detailed information on how to register a business in Thailand. However, after finishing the registration process, the most significant function of a business owner begins.
After beginning a business in Thailand, you will face a slew of duties. We’ve highlighted a few of them below to assist you move forward with confidence:
License and Permits after Company Registration in Thailand
The Thai government regulates a majority of commercial activity in the kingdom. Even after finishing the business registration procedure, you will not be able to begin operations. You can begin that only after receiving all essential licenses, permits, and permissions from government agencies. Before beginning business operations, travel agencies, video firms, private schools, moneylenders, liquor distributors, daycare centers, financial consultants, merchants, wholesalers, and importers must all get government permits.
Obtain Registration Number and Register Office Hours
The ACRA issues the company registration number, whose proper and correct mention is mandatory on all documents and collateral. These includes invoices, letterheads, bills, and other necessary company papers to ensure legitimate official communications on the company’s behalf. At the same time, entrepreneurs must register office hours and addresses in order to conduct regular commercial operations. On weekdays, at least three hours of active work routines are mandatory.
Registration with Customs Department
It is critical to register your firm with the Thailand Customs Department. This is mandatory if your business activities entail export, import, or trans-shipment. For a business, you may need to obtain a CR number, or a Custom Registration number. This number is mandatory for all Thai companies to do any type of business.
Goods and Service Tax (GST) after Company Registration in Thailand
GST is a tax levied in Thailand on the supply of goods and services. This includes imports as well. It’s worth noting that items that are for shipping outside of the country are GST-free. Furthermore, businesses who provide overseas services have a certain leeway. The current GST rate, on the other hand, is 7%. For their taxable annual revenues, all firms in Thailand must follow GST requirements.
You will be able to easily expand your business in the country once you have completed all of these processes. Along with that, you must hire a professional Accounting and Taxation team in Thailand. This becomes more compulsory if you are a foreigner with less information on the Thai taxation and accounting policies. A professional team of lawyers and accountants will always be more effective and efficient than an in-house team. Leave us an email at [email protected] to get all types of suggestions related to company registration in Thailand. You may also book your free round of online consultation with us on weekdays (Mon-Fri).
