The first step in registering a new company in Thailand is to reserve a name. This must be different from existing registered names and not resemble any other Thai company or partnership. This is a very important step in the process as it provides an official registration certificate for your business and a Tax ID number. This is essential in order to open a local bank account and conduct regular business activities.
The second step is to hold a statutory meeting of the company’s shareholders. During this meeting the by-laws of the company are submitted, articles of incorporation are drafted and any contracts entered into are ratified. The next step is to register the company with the Department of Business Development within a period of 90 days from holding the statutory meeting.
After this, the company will be issued with a Certificate of Business Registration and Company Affidavit. This certificate is required to open a corporate bank account at any one of the Thai commercial banks. The company will then be legitimately registered in Thailand and will have to pay taxes.
There are many benefits to registering a business in Thailand, including a favorable tax environment and the ability to hire Thai nationals as directors. However, it is important to understand that there are some restrictions and limitations that you need to consider.
Choosing a Business Structure:
There are several options when establishing a business in Thailand, but the most popular option is a private limited company. This type of business is regulated mainly by the Civil and Commercial Code of Thailand. It is owned by a minimum of 3 shareholders and requires registered capital in the form of shares.
A share value is not a fixed amount, it can be as low as THB 5 per share for a private limited company or as high as THB 1 million for a public limited company. The minimum number of shareholders for a private limited company is three, and the maximum can be fifteen.
Other options for establishing a business include a limited liability partnership and a representative office. These are not as popular with foreign investors, but they may be useful in some circumstances.
Besides, there are other tax incentives for companies that are set up in Thailand. For example, a company that is engaged in R&D or advanced technology training can benefit from a tax exemption.
Another advantage is the fact that the company will be exempt from all customs duties on its exports. This will help the company save money in terms of imports and exports and also reduce its overhead costs.
In addition, companies based in Thailand can take advantage of tax incentives in the form of a preferential rate of income tax and capital gains taxes. These incentives are aimed at encouraging foreign investors to set up their businesses in Thailand and make investments in the country.
The main regulatory body for registering a new company in Thailand is the Department of Business Development, which is under the Ministry of Commerce. The Department of Business Development is responsible for regulating companies in Thailand and provides information on their history to third parties such as investors, banks or private lenders. It also offers a number of services to businesses that are operating in the country, such as assistance with filing documents and providing advice on how to comply with local laws.