Company Formation Guide in Thailand

Updated on Wednesday 01st November 2017

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Thailand represents an attractive business market for foreign investors who want to set their enterprises. With one of the fastest developing economies in the world and with a constant preoccupation of attracting foreign investment, Thailand has become one of the most modern and looked after business destinations worldwide. Persons who desire to open 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 servicesOur 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 opening a company in Thailand is to start the registration process with the Trade Register hosted by the Department of Business Development. 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. Our consultants are prepared to help you gather the complete documentation so that you can speed up the process of company incorporation.

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. 2542our company registration experts in Thailand can provide you with a list of the industries in which foreign investors can’t operate. 

We invite you to watch a comprehensive video about the company registration procedure in Thailand



Legal entities in Thailand 

Before incorporating a Thai company it is necessary to choose a legal entity under which the business will function. Each type of legal structure may respond better to different objectives, so it is important to adapt the legal from to the needs and structure of your enterprise. 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; an 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 registration specialists in Thailand;
•    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. 
 
Our specialists in company formation can help you with more detailed information on each type of legal form so that you can organize your enterprise in the most adequate way.
 

Other aspects concerning the incorporation of a Thai company

One of the key aspects when opening a successful enterprise in Thailand is to make sure you comply with the provisions of the Government regarding the business visa in this country. The Thai non-immigrant B visa allows foreign investors to open a company in this country. If your business plans extend on more than one year you can change the B visa for a long term visa.

If you want to reach the Thai public with your products it is also useful to invest as well in advertising. It is important to make sure that your brand and logo are in compliance with the Thai intellectual property law and, at the same time, that your messages are relevant for the Thai public.

It is also significant to choose a location for your enterprise which grants you visibility on the Thai market. It is also very popular among foreign investors to employ due diligence services in order to evaluate a property at the right value and to prevent unpleasant situations.

Foreigners who intend to open a company in Thailand or in other country, such as Serbiamay contact our incorporation specialists, who can assist entrepreneurs with the entire company formation procedure. 
 

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