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How to register a Thai Limited Company
A Limited Company, is the most popular form of business structures in Thailand. This is due to the flexibility offered to business owners. Foreigners can either establish a Limited Company as a joint venture with a Thai National, or as a 100% foreign owned entity.
What is a Limited Company?
Thai Limited Companies are the Thai equivalent of a Limited Liability Company (LLC). Limited Companies are made up of both directors and shareholders. Limited Liability means that the shareholder in a Thai Limited Company can only ever be liable for the capital they invested only.
Requirements to Register a Company in Thailand
- A minimum of three shareholders is required.
- The liability of each of the shareholders is limited to the value of their shares.
- The directors are responsible for managing all company affairs.
• Foreign ownership
100% foreign ownership is possible depending on the business activities.
• Full Control
Preference share structure allows companies to adjust share voting rights and dividend allocations between the shareholders.
• Foreign Business License
A Foreign Business License is required for most activities for companies which are > 50% owned by foreigners.
• Minimum Capital Requirements
2 million Baht per foreign employee.
• Business Restrictions
If > 50% foreign owned, Limited companies can only engage in business activities that are not restricted under the Foreign Business Act or other regulations.
• Hiring of Foreign employees
A ratio of 4 Thai employees per foreign employee hired is required to support a Work Permit.
Register a Company in Thailand
Pricing
FROM
THB 20,000 *
+ 7% VAT
5 business days
(Average time from the moment
we receive complete information from you)
* + Government Fees: THB 8,500
Application handled by a corporate expert.Scope of work
- Assistance in the pre-registration procedures. This includes drafting and filing the Memorandum of Association, registering the company name and calling a Statutory Meeting..
- Prepare and file documents with the Ministry of Commerce to set up a Limited Company. This includes collecting and collating the required documents
- Answering questions in relation to the process for setting up a Limited Company.
- Advising you on the post registration duties to ensure a smooth business operation.
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Additional services that you may need as well
Process to Register a Thai Limited Company?
Be prepared for registering your Limited Company with our comprehensive and free registration checklist.
Be prepared for registering your Limited Company
with our comprehensive and free registration checklist.
Step1 – Pre-registration requirements
Our experts can assist you with the initial steps for registering your Limited Company. This includes:
- Identifying the correct company structure that best fits your needs
- Establishing an address for registering your company
- Reserving the company name online with the Department of Business Development (DBD) and making sure the chosen name is available and satisfies any relevant criteria.
Timelime
5 business days
Step2 – Collecting documents and filing the application
Our team of experts will collect, collate and fill in all the required documents, ready for your signature.
TIMELINE
A few days to collect documents from the parties and prepare the application
Step – 3 Registration of the Limited Company
Our team of experts will file all the documents and application forms with the Ministry of Commerce.
TIMELINE
One day for filing the application
Step 4 – Post-registration requirements
The company registration number is the Tax ID of the Company. Our experts can assist with you the next necessary steps to start your business:
- Bank account opening
- VAT registration (not always required)
- Social Security Office registration (required within 1 month of hiring a new employee)
- Setting up the accounting and tax filing system
- Obtaining business licenses
- Visa and Work Permit for the foreign employees
TIMELINE
1 day for Social Security Registration1 weeks for VAT Registration2 days * to open a bank account2 weeks * to obtain a work permit
Frequently asked questions
How to Register a Thai Limited Company in 2022?
To Register a Thai Limited Company, it takes 4 simple steps.
- Choose and register a company name.
- Draft and file the Memorandum of Association.
- Call and hold a Statutory Meeting of the shareholders
- Register the Company with the Ministry of Commerce.
- Register the company for Value-Added Tax (VAT) and Income Tax
Can I own a company in Thailand?
Yes, foreigners can start a business in Thailand. However, certain business activities are restricted by the Foreign Business Act and in order for businesses to undertake them they must obtain a Foreign Business Licence/Certificate which can be time consuming and complicated.
What is the minimum capital to register a company in Thailand?
Limited Companies in Thailand can be registered through issuing 3 shares with a value of THB 5 each. However, in practice you would need at least THB 50,000 to register a company. It is also possible to deposit only 25% of the desired capital when registering a company. If the company in question wishes to hire foreign staff, it is necessary to have a minimum paid up capital of THB 2 Million per foreigner/Work Permit required.
How many directors are required in a Limited Company in Thailand?
A Thai Limited Company is required to have at least 1 Director. Directors can be either Thai or foreign.
How many shareholders are required in a Limited Company in Thailand?
A Thai Limited company is required to have a minimum of 3 shareholders.
Do I need a Thai partner to register a Limited Company in Thailand?
It is not required to have a Thai Partner when registering a Limited Company in Thailand. However, if your company is majority owned by foreigners (>50%) numerous business activities, including services are restricted and require you to obtain a Foreign Business Licence (FBL), whereas having Thai Partners (51% Thai and 49% Foreign ownership) allows the company to engage in most business activities.
Do I need to lease an office for the company registration?
A corporate address is a mandatory requirement for registering a Thai Limited Company. During the initial stages of registering a company (company and tax registration), the address doesn’t have to be a dedicated office space. However, when the Limited Company starts undertaking its business activities, a dedicated office space is required. This is a requirement for VAT and Social Fund registrations, as well as hiring foreign staff.
Why is it hard to do business in Thailand?
The Foreign Business Act limits to the business activities a 100% foreign owned company can undertake. This means Thai Shareholders will need to be sought or a BOI promotion obtained in order for a company to legally operate.
Explore other structures
Question Before You Begin? *
Question Before You Begin? *
Speak to our expert by scheduling a free call on how to set up a Limited Company in Thailand with Belaws.
(*) This Conversation is intended to provide basic answers to questions you may have about the Limited Company. But it is not a Lawyer’s Consultation. Learn more.
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