FAQ on Company Formation Matters in Thailand

Updated on Monday 03rd July 2017

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If you have decided to explore the business opportunities of Thailand and you intend to set up an enterprise in this country you undoubtedly have a series of questions for which you want to find answers as soon as possible. Our company formation specialists in Thailand have gathered for you the most frequently asked questions on the procedure of incorporation as well as on other related matters. 
 

1. Who can start a company in Thailand?

Regardless of your nationality you are welcome to open a company in Thailand. Thailand’s policy provides equal rights to foreign investors and local ones. Some special measures are frequently taken at national level in order to encourage the development of the economic investments in Thailand.  
 

2. Does the company have to be registered in Thailand?

When an investor registers a company in Thailand then the business must provide an address from this country. According to the Thai Foreign Business Act, even if you don’t intend to start a new business in this country, but only to open a representative office or a branch, at registration, you must provide to the authorities a local address.
 

3. How can I open a bank account in Thailand?                 

The opening of a bank account is part of the company incorporation procedure in Thailand. The process is easy; you only have to provide a passport and several documents concerning the legal structure that you intend to register in this country. Our experts in company formation in Thailand can offer more details on how the documentation must be prepared and they can help you speed up the process of opening a bank account. 
 

4. What are the steps for company incorporation in Thailand?


The first step of company incorporation in Thailand is to make a name reservation so that you can be sure that your future enterprise will have a definite identity on the market. Afterwards you must address a notary in order to elaborate the articles of association for the enterprise, a document which contains the mission and purpose of a company as well as the responsibilities of the board. These files must be submitted through an application to the Business Development Office (BDO), which is the authority which deals with the registration of new companies. 
 

 5. What is the minimum share capital in Thailand?         

The minimum share capital required for the opening of a new company is 1 million baht. You can deposit even more capital if you consider it to be necessary for the projects you have in mind. The Articles of Association must contain as well the amount you have deposited as initial capital. 
 

 6. What are the documents required for company registration in Thailand?

 
The documents which contain the most important information about the company are the Articles of Association. This document is a condensed statement about the business activity and the structure in which the company has been organized. The registration documents need to contain the following information:
  • the reserved name for the company;
  • the address where the company will be located;
  • the registered capital;
  • the payment of the registration tax;
  • eventual VAT registration for companies who are liable for the payment of this tax.
Copies over the passports or IDs of each director are also necessary for registration along a copy over the housing registration for the company, which can provide the address of the enterprise. 
 

7. How long does it take to register a company in Thailand?

Now business registration takes more than three days in Thailand. Moreover, if you need to obtain your registration in one day, this is possible for urgent situations. Our experts in company incorporation can explain to you in detail all the options you have to speed up the company registration process in Thailand.
 

8. Do I need special permits and licenses in Thailand?       

Depending on the domain of activity of your company you might need to address the authorities in Thailand in order to obtain a special permit or licence. Restaurants, companies offering medical services or educational services are only a few examples of enterprises who need to apply for a special license in Thailand.  
 

9. What are the taxes that I have to pay in Thailand?

The conditions in which income tax in Thailand is levied are very advantageous. There are several levels of gradation for investors, from 0% for earnings less than 150.000 Baht, up to 30% for revenues over 4 million Baht. The VAT in Thailand is levied at the flat rate of 7% with the exception of certain business areas which benefit of VAT tax exemption. For most of the companies the corporate tax is of 20%, but smaller companies benefit from gradually lower rates.
 

10. Why should I invest in Thailand?        

Not only Thailand is one of fastest rising economies but also the government encourages foreign investment through periodical incentives. The life conditions in Thailand abundant in opportunities are also an important argument to choose this country as your place of investment.
 
For detailed information on the process of company registration in Thailand and investment incentives you are welcome to contact our local experts.

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