Setting Up a Company in Thailand for Foreigners

Setting up a company in Thailand requires knowledge of the Thai language and culture. There are institutes that offer courses in the Thai language, such as the Center of Thai as a Foreign Language at Chulalongkorn University, as well as cultural and social courses that help foreign entrepreneurs get started. A trustworthy Thai business partner can help you overcome language barriers and navigate the process. There is also a Department of Business Development at the Ministry of Commerce that can provide information about the different types of businesses in Thailand. Finally, the Revenue Department can help you with tax inquiries. In this article, we will discuss how to register a company in Thailand.

The process of forming the company in Thailand

Setting up a Thai company is a process that requires multiple steps. It involves submitting forms, in both English and Thai, to various Thai government agencies. In addition, it requires the submission of supporting documents. It is therefore beneficial to hire a lawyer with experience in the field to assist you with the procedure.

The first step in setting up a Thai company is reserving the company name. This step is essential to ensure that the company has a distinctive identity in the market. After reserving the company name, the notary drafts articles of association, which must be submitted to the Department of Business Development (DBD), the Thai authority that registers new companies.

Once all necessary documents are submitted, the directors of the company must submit an application for company registration in Thailand. This application must be made within three months from the date of the company's statutory meeting. The shareholders, promoters, and directors must also sign the company's registration documents. Within the same period, the company must also register for tax under the Thai laws.

Company Memorandum Of Association

The first step in setting up a company in Thailand is to complete the company Memorandum of Association, which must be filed with the Business Development Office. It must contain information on the company name, province, business objectives, registered capital, and the names of the promoters. The Memorandum must also state the number of shares and the par value of the shares. If you are a foreigner, you must also have a work permit or an equivalent visa.

A private limited company is similar to a western corporation. It is governed by a board of directors and has a maximum number of shareholders. The liability of the shareholders is limited to the par value of their shares, while that of the directors is unlimited.

Minimum Capital Required for Thai Company

If you're planning to start a new business in Thailand, you'll need to understand the minimum capital required for a Thai company. Thailand's Ministry of Commerce recently updated the regulations for foreign-owned companies and combined the requirements into one, streamlined document. The new Ministerial Regulation took effect on August 28, 2019, and affects foreign-owned companies that operate in Thailand under the privileges of bilateral and multilateral treaties, such as the US-Thailand Treaty of Amity and Economic Relations.

A minimum capital requirement is THB 2 million, with an additional THB 2 million required for each additional work permit. Thai law prohibits the issuance of shares with a par value less than THB 5 and Treasury shares are also prohibited.