16/02/2021
How to register a company in Thailand?
What to do when you are being a foreigner but want to starting the business or expand business in Thailand legally. There are 2 kinds of company registration of a foreign company as follows:
1. Company registration with non-Thai nationals holding shares no more than 49% and Thai citizen holding shares 51% , can operate any business according to Thai law.
2. Company registration with non-Thai nationals holding shares 100% or more than 50% of the shares are considered as foreign companies and must apply for a foreign business license before you operate a business in Thailand.
Therefore, most investors choose to register the company as Thai nationality according to clause 1. for
the privilege of Tax equivalent to Thai companies by holding shares no more than 49% and Thai citizen holding 51% of the shares according to Thai law. However, according to the Foreign Business Act, B.E. 2542 (1999), section 14 said that “The minimum capital to be used by a foreigner for the commencement of the operation of a business in Thailand shall not be less than that prescribed in the Ministerial Regulation, provided that it shall not be less than two million Baht". Or in the case where the business of the foreigner under paragraph one is the business requiring permission as specified in the Lists annexed hereto, the minimum capital as prescribed in the Ministerial Regulation for each business shall not be less than three million Baht. If the company wishes to request a work permit for a foreigner the company must pay a minimum registered capital of two million baht. However, all Thai citizen shareholders must present evidence to certify the financial status to the DBD (Department of business development) along with the registration documents.
The process of establishing a limited company,
1. Must have two promoters and the director submit a request for a company name inspection and
reservation to the DBD (Department of business development) to verify that the name to be used will not be the same or similar to the name that other people have registered before. The result of the company name reservation within the date of submission or lately 1 working day and must apply for company registration within 30 days.
2. Arrange for a founder to buy shares in accordance with the total number of shares that the company
will register.
3. Company establishment meeting to consider various businesses in accordance with the Civil
and Commercial Code, Section 1108.
4. After the statutory meeting is held, the promoters shall hand over the business to the directors. The
directors shall thereupon cause the promoters and subscribers to pay forthwith upon each share payable in money such amount, not less than twenty-five per cent, as provided by the prospectus, notice, advertisement or invitation according to section 1110.
Required information,
1. Company name (As the name has been reserved)
2. Location of the head office / branch
3. Objectives of the company to operate business
4. Company registration capital
5. Name, address, age, nationality, phone number, ID card or passport number in case of a shareholder / director is foreigner.
6. Name and power of director(s)
7. Name and registration number of certified public accountant with remuneration
8. The company seal (if have)
9. Fee for company registration
Yiru Su
Partner
Los Muchacho Mono
Contact us for support and further information,
E-mail :[email protected]
