Thailand makes it easy for foreigners to establish a business in the country. This is said to be one of its many advantages compared to other Asian countries. Thailand is always open for business! Naturally, it became easy for the country to nab the 2nd spot when it comes to thriving economies in Southeast Asia. The World Bank even sees Thailand and its solid climb to development as a success story. Through faithful work and promulgation of foreigner-friendly policies, Thailand successfully became an upper-middle-income economy in 2011.
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If you’re ready to explore Thailand and see just how much it can allow you to grow financially, now is the time to give it a try. To help you do this, we’d enlist the five simple steps that you need to do to register your business in Thailand without any kind of stress or hassle. To make things simpler for you, you can also work with contract professionals to help register your company.
2022 5-Step Guide on Registering Your Company in Thailand
Step #1: Have your company name registered.
You need a company name. This is something that you need to immediately settle and dedicate time to after you’ve decided on your business structure. When coming up with a name, you should keep the following points in mind:
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● You should not have a company name that is identical or similar to an already existing and registered company
● You should pick one that is simple. It should not be too long or too hard for local Thai residents to pronounce.
● It should be easy for clients of all nationalities to remember and write.
● It should comply with all ministerial regulations.
● It should have a Thai version.
● You should at least have three options to choose from. Arrange them according to priority.
● You should put the word “Limited” in your company name if it will have the structure of a private limited company.
● A chosen name is only valid for 30 days once it is approved. You can still reapply for the same name if it will still be available should you miss the chance to use it.
Step #2: Have your Memorandum of Association filed.
The Department of Business Development of the Ministry of Commerce will require you to submit a Memorandum of Association (MOA). It is an exclusive agreement that you will create together with your company’s other founders or promoters. If your company will be private and limited, your MOA should contain the following:
● Your company name
● The location of your company’s office – the Kingdom’s province where it will be located
● Your company’s objectives
● Your company’s share capital amount that it is willing to offer to register
● At least three promoters – their complete name with their address, profession, and signature
● Your company's number of shares subscribed to each promoter
● Your company’s declaration of the limited liability of the shareholders
The MOA’s original copy must be signed by the promoters. The signing must be certified and attended to by two witnesses.
Step #3: Have a statutory meeting.
Once the MOA is registered, you should immediately have a Statutory Meeting. This Statutory Meeting will have you do the following:
● Create and adopt the Article of Association
● Ratification of contracts entered into by promoters
● Internalization of expenses incurred in the promotion of the company
● Appointment of directors
● Appointment of auditors
The promoters will be required to hand over all businesses to the appointed director after the statutory meeting. This goes without saying that you should have all essential contracts with you during the Statutory Meeting.
Step #4: Have your company registered.
Your company must be registered within three months after your statutory meeting. You will need to have your company directors file such registration application at the Ministry of Commerce. You need to closely observe the three-month statutory period because failing to register within the period will have your statutory meeting voided. Once voided, you would have to convene anew.
Your promoters will need to provide the following:
● Necessary documentation for the registration process
● Name of the prospective auditor
● The license number of the auditor
● Remuneration of the auditor
● Registration fee of THB 500 for every THB 100,000 registered capital – this rate is for a private limited company
You should take note of the following as well to avoid conflicts and hassles:
● Your Thai shareholders should disclose the source of their funds for investment
● Your directors will need to prepare a statement that attests to the payment of all shareholders of their subscriptions
Step #5: Handle your taxes.
You will have 60 days to handle your tax needs after you’ve officially incorporated your company. Your company will be liable for corporate income tax and you will need to get a tax ID card and number for it from the Revenue Department. Foreign companies need to get such ID the moment they start operating their business in Thailand.
VAT registration will be required for companies with a turnover that exceeds THB 1.8 million. Registration must be done within 30 days after they exceeded such a threshold.
Register Now
The best thing to do is to start preparing as early as now. If you still find things too complicated, just reach out to a company like My Thai Company, which can handle the entire registration process for you.
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