It is very much possible to register a company in Thailand as a foreign investor. Thailand is with no doubt a land of possibilities. With little patience and persuasiveness, an entrepreneur can grow a stable business here. But a good business always demands clear ideas on local markets, scopes. You must also have knowledge on local business setup processes and government policies. Yes, you must study on necessities required to start your company in Thailand. S & F consulting firm comes into action at this stage. This business consulting firm has a stronghold on consulting entrepreneurs in new businesses. If you want a clear conception on company formation process, now you know whom to knock.
Limited company is the most popular type among entrepreneurs in Thailand. Particularly among foreign expats, this company category is quite popular. Thus, a major highlight of this article will fall on limited company.
For forming a limited company, at least three promoters are compulsory. Among these three promoters, two of them can be expats and the third person must be a resident of Thailand. You have to count a balanced setup of at least 3,000,000 baht. For foreigners, the investment must be at least 2,000,000 baht. Once you have arranged this amount, you are ready for the registration process.
1. Memorandum of Association (MoA).
This is an agreement made by the directors of the company. This particular agreement includes proposed name of the company, location of the company. The document will also include company objectives, company type, number of shareholders. also included are, credential of shareholders, and number of shares for each director. the document must enclose with signatures of shareholders and certified by two witnesses.
2. Registering a company name.
To begin with, you need to propose a unique company name. A company name must include “Limited” as suffix. A temporary validation period of the company’s name is 30
days. You must prepare your MoA papers along with registration documents within that time. Submitting final document to MoC and receiving approvals will fix your company name.
3. Statutory meeting.
Once MoA submission is complete, conduct a statutory meeting. This meeting will build up an article of association of the company. The meeting will also clarify the amounts promoters will get and number of shares issued on them. Finally, the meeting will appoint the first director and auditor for the company.
4. Registry for Incorporation application
You need a company incorporation certificate at this stage. Fill-up the registration form provided by MOC with care and submit it. The Ministry of Commerce or MOC handles this paperwork. In your form you have to give information about number of ordinary and preferred shares. The form will also need data of your capitals invested on each share. It will also ask for each director’s credentials and company’s location.
5. Apply for income tax, VAT certificate and business license.
At this point it would be wise to apply for all your work permit and business visas if you are a foreigner. Without that you have to handle the company from overseas. To run the company, you also need to apply for income tax, VAT certificate and business license. These are compulsory for starting any business in Thailand.
6. Apply for Social Security card
you will also need a social security card while residing in Thailand for company purpose. This is necessary at pretty much everywhere you move in Thailand. It is your identification other than passport while staying in Thailand
7. Other licenses and certifications if required
Suppose you are opening a restaurant you must have to have a legal license for serving alcohols. For carrying our export import trade, you will need authority permit. For manufacturing chemicals and medical drugs Legal license is compulsory. An authorized License is necessary for health care services. You can apply for those licenses from designated authorization body. For getting those certifications and licenses you must come up with few documents.
Often you will need following paperwork:
- Copies of company bank accounts
- Your name and personal credentials
- Detail company information
8. A company address and office utilities.
A physical address is compulsory for completing the business setup process. Once advancing for this step, you will have two choices in your hand.
1. Serviced office
2. A traditional office
Serviced offices are pre-furnished with all utilities and office furniture. You will only need a computer or laptop with your office files and documents.
The traditional office on the other side is typical. Its an empty office space which you need to decorate. Here you have to buy all office furniture and utilities for office setup.
9. A new business bank account
If you’ve finished the company registration process, open a business bank account. You can choose any bank of your preference for this account. A native partner of your company should be present as reference for opening the account.
10. Apply for business visa and work permit
If you are foreign investor, get your business visa and work permit. You can process your own visa and permit by collecting visa application forms. But it is convenient to hire a lawyer expert in business visa processing. At typical condition Thai embassy process the required visa. There are few documents you must place for your visa. These are:
- A drafted registration form
- An approval letter from local labor ministry and
- A recommendation letter from Thai partners from your business.
For getting the work permit you need a capital of 2 million baht. You will also need at least four natives working for your company.