Setting up a business in Thailand requires that you reserve your company name, register for corporate tax and apply for value added tax (VAT). After these steps are complete, you will need to prepare a Memorandum of Association.
A MOA must include the company’s name, province of registration, a declaration that shareholders’ liability is limited and details of the share capital. It also includes the names of the promoters.
Choosing a business structure
Choosing the right business structure is an important first step in registering a company in Thailand. It will have a major impact on everything from taxation to liability. The right structure will also make it easier for your business to meet regulatory requirements.
For foreign investors, the most common choice is a private limited company. This type of entity offers limited liability and allows for up to 49% foreign ownership. However, the structure requires more detailed accounting and is subject to a variety of restrictions.
It is also necessary to obtain any required licenses or permits. These may include licensing for import/export, manufacturing, or operating certain types of businesses. It is best to consult with a professional that can help you navigate the process and ensure compliance. This will save you time and ensure that all necessary paperwork is in order.
Identifying the target market
The first step in registering a Thai limited company is to reserve a name. The name should not be identical to or closely resemble an existing registered business in Thailand and must end with “Limited.” This can be done online through the Department of Business Development (DBD) website. It can take up to three days for the name to be approved.
The next step is to prepare the Memorandum of Association, which outlines the company’s objectives, capital, shareholders, and other important information. The company must also apply for a corporate income tax ID within 60 days of incorporation or commencing business. If the company employs a foreigner, it must also submit a work permit application and pay a fee to the government.
Lastly, the company must prepare financial statements and maintain a book of register. If the company fails to meet this requirement, a penalty of up to Baht 50K will be imposed. The company must also call for a statutory meeting every year and issue share certificates to shareholders.
Identifying the business objectives
Clearly defined company objectives are an important element of the business registration process. These will serve as a guide for the company throughout its existence and help it adhere to the laws of Thailand.
To register a Thai limited company, you must submit an application to the Department of Business Development (DBD) within the Ministry of Commerce. The application should include the selected reserved company name, the capital for registration, and the business objectives. The DBD will also require the preparation of the articles of association and a statutory meeting.
During the statutory meeting, the company must prepare the share certificates for shareholders and a book of register of shareholders. The company must also ensure that bearer shares are not issued and that all shareholders have registered ownership of their shares. The company must also appoint directors and prepare the by-laws and articles of incorporation. It is important that a Thai limited company adheres to strict financial requirements and submits annual balance sheets to the DBD.
Identifying the capital
Identifying the capital requirements is one of the most important parts of Thai Limited Company Registration. This allows third parties to examine the company’s financial state and determine whether it is reliable enough to be trusted with their investments. It also helps investors and lenders make decisions about investing in the business.
The required minimum capital for a Thai Limited Company is 1 million baht, which must be fully paid up and sufficient to support the proposed business activities. The registered capital must be deposited in the bank account opened for the business. Afterwards, the company must open a corporate tax account with the Revenue Department and register for VAT if it is required.
The company must prepare the Memorandum of Association (MOA), which includes details such as the name, objectives, province of the registered office, declaration that liabilities of shareholders are limited, share capitals and directors’ names and signatures. This document must be approved by a statutory meeting before it can be filed for registration.