How to register a company in Thailand

Every year Thailand is becoming more attractive for foreign investment: opening up new markets, weaken protectionist measures, programs are launched to attract foreign capital.

The Thai government is gradually expanding the possibilities of foreigners doing business within the state, annually, by simplifying the registration procedure of the company.

At present, foreign businesses are prohibited from conducting more than one hundred sixty types of activities. Some of them, such as activities of travel agencies belong to the highly profitable and rapidly growing industries. However, there are a number of opportunities for the foreign investor to register a company in Thailand which will be considered a resident of the country and will be able to use the full range of rights for Thai legal entities. Therefore it is necessary to consider in detail how to register in Thailand, company-resident, which will permit virtually any activity with the exception of strategic and socially significant branches.

Company in Thailand can be opened in the form of partnerships, associations or regional offices of international companies. For each of these organizational forms legally defined boundaries of responsibility of the founders, the registration procedure, the size of the initial capital contributions and other requirements. The choice of the legal form a new business should be determined taking into account the objectives and scope, as well as on the basis of the operational plan and long term strategy of the company.

As an example, we should dwell on the procedure of opening a limited liability company. This form of organization is deemed toit is the most flexible, easily bought and sold in the form of finished business, and also has a number of advantages that made it the most popular among foreign investors. One of the most important advantages of a limited liability company in Thailand is the ease and transparency of the registration procedure.

To register a new business will need a very small set of documents: the Memorandum and the documents of title to the area occupied by the company. In the Memorandum of Association should be spelled out unique name of the organization location of head office, objects, capital structure, and the original founders.

Capital structure and the shareholders of the resident company must be formed in accordance with the Civil code and the Law on foreign business. These laws establish that the shareholders of the company the resident must be at least three participants. While nominal ownership by Thai nationals shall not be below 51 percent.

The minimum share capital depends on the number of officially employed in the company of foreigners. Official the hiring of foreign workers requires making a capital of two million baht for each alien, including the Director.

When opening the company paid a registration fee in the amount of five hundred baht for every hundred thousand baht stated capital. To start activities at least 25% of the share capital must be paidChenoa within three months from the date of registration of the company.

The last important point in setting up new business in Thailand is to register with the tax authorities. First and foremost, the company must be registered as a payer of value added tax (VAT) and profit tax (corporate tax). Also required to register all employees as taxpayers of income tax. This is necessary for obtaining work permits and opening a business visa.

Thus, to open a company in Thailand need to provide a quota of Thai shareholders, to organize the first shareholders ' meeting and sign the Foundation agreement, to rent or buy commercial property, apply for registration and pay the registration fee and register the company with the tax authorities.

The procedure of company registration in Thailand takes less than a week and requires personal presence of the chief of the settlor only at the time of submission of the application to state bodies. In order to simplify the solution of organizational and legal issues related to opening the company should hire a local lawyer in corporate law.