Company Formation Guide in Thailand
Updated on Thursday 03rd March 2016
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Thailand represents an attractive business market for foreign investors who want to set their business operations here. Persons interested in opening a company in Thailand are advised to study the local legislation before commencing the incorporation process, in order to get acquainted with the main requirements in this sense. It is also very useful to receive the assistance of our Thai company formation specialists, who can provide you with a wide range of company incorporation services. Our local experts have prepared this comprehensive company formation guide for all the foreign businessmen and entrepreneurs interested in the business opportunities that may arise in this country.
Incorporation process in Thailand
The first requirement for setting up a company in Thailand is to start the registration process with the Trade Register. Several actions must be completed in order to begin the registration procedure, such as: drafting the company's articles of association, naming directors and a company’s secretary. Also the company must register with the local authorities for Value Added Tax and at the social contributions.
One of the first steps to incorporate a company is to choose the trading name for the business and then verify if it is available; you can check the names of all the companies in Thailand at the Department of Business Development (DBD). According to the Thai legislation, foreigners are allowed to open a company here, but some categories of businesses are prohibited, as stated by the Foreign Business Act BE. 2542; our company formation specialists in Thailand can provide you with a list of the industries in which foreign investors can’t operate.
Legal entities in Thailand
Before incorporating a Thai company it is necessary to choose a legal entity under which the business will function. Foreigners are allowed to choose one of the following legal structures:
• limited liability company (LLC) – it is the most common type of business form registered in Thailand; a LLC allows 100% foreign ownership, but investors who want to access business markets which are prohibited for them under the local legislation can establish a 51% local ownership for the company (as a general rule, most of the foreign LLC companies are set up with a mixed ownership); you can receive more details on this subject from our company formation specialists;
• amity treaty LLC – a type of LLC aiming at American citizens; this company type requires a capital of minimum 51% owned by American citizens, but it is also allowed to have 100% American ownership.
• public limited company (PLC) – requires having at least 15 shareholders, out of which half should be represented by local citizens.
Foreigners interested in opening a company in Thailand may contact our company formation specialists, who can provide a company formation guide acccording with the entrepreneur's needs. .