Sole Proprietorship in Thailand
Updated on Tuesday 18th October 2016
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If you wish to set up a company in Thailand, you should consider a sole proprietorship, which is a business owned by a single person. This is a recommended option to all foreign businessmen who wish to enter the market and start a small business at the beginning. Our specialists in company registration in Thailand can provide you with suitable information in this matter, in order for you to start a business.
What you need to know about the sole proprietorship in Thailand
A sole trader or a sole proprietor needs to know he has the option to pay the personal income tax. The sole trader is liable for the business' responsibilities with his personal assets. In simple words, the creditors of a sole trader are able to impose their entitlements against everything owned by such person, and there is no difference between the private businessman and his operations or activities.
Regarding the VAT in Thailand, a sole trader needs to collect this type of tax on the product or services sales, with the specification that he will be discharged from this condition if the annual income will not surpass THB 1,800,000. Regarding the taxation system in the country, our company registration agents in Thailand are able to offer the necessary information and guidance, in order for you to properly open a company in Thailand.
Register a sole proprietorship in Thailand
First of all, overseas businessmen who wish to establish a sole proprietorship in Thailand need to obtain a work permit, according to the Immigration and Labor Law in the country. American citizens who wish to do business in Thailand have the right to 100% ownership, due to the US – Thailand Treaty of Amity and Economic Cooperation signed in 1968.
It is good to know that our experts in company registration in Thailand can offer detailed information on this matter. In order to properly function, the commercial activities of a sole proprietorship in Thailand need to be registered at the local District Office, and the following documents are necessary:
• a signed copy of the house registration book of the business address;
• the map of the business address;
• the taxpayer number;
• the VAT certificate;
• the registration application form.
If you have questions about the sole proprietorship or about the company registration procedure in Thailand, you are invited to contact us.