We have discussed a new company registration fee in Thailand that is government fee and consultancy fees: To set up any kind of company in Thailand, you need to pay a certain amount of money associated with the whole process especially for registration. For the actual business registration, you need to submit a fixed address and provide proof of this by means of a copy of the lease agreement.
A limited partnership requires at least seven shareholders in the business, one of whom is a juristic person who has the authority to sign all documents on the company’s behalf. For a Thai company with no foreign employees, a minimum registered capital of 300 K is required when setting up the business of which at least 30 K must be paid up at the time of registration.
If there is any foreign employer in the company then it is a bit more complicated. In that case, the company needs to have registered capital of at least 2 million Baht; that will require at least four Thais employed and you will need to justify the employment of the foreigner based on their skills and the requirements of the job.
The official fee for registration of the memorandum of association for a private limited company is 50 baht per 100,000 baht of registered capital. The least amount you have to pay for this is 500 baht and it can go up to 25,000 baht.
The official registration fee for 1,000,000 baht of registered capital is 1,000 baht for a public limited company. The maximum fee is 25,000 baht. Although there are no restriction on the amount of capital, it should be satisfactory and adequate for the intended business operation.
You do not have to pay company tax on a monthly basis, but rather, this is paid at the end of the year based on your audited income statement; or, if your company is of a significant size, the revenue department may ask you to estimate turnover and pay part annual tax based on this estimate. Of course, you pay VAT on all your purchases and if your turnover is above the VAT ceiling, you will have to register for VAT and charge it on each invoice. This VAT must then be paid monthly, so if you are offering a long credit term to clients, be aware that your VAT payments may fall due before you get paid.
The estimated company registration fee in Thailand can be listed as follows:
- Service fee for company registration (for the case of registered capital of below Baht 5 million) : Baht 17000
- Company stamp : Baht 500
- Tax identification: free of charge
- VAT registration: free of charge.
- Government fee solely depends on the amount of capital, for the first Baht 1 million is Baht 6,500 and will plus Baht 6,000 for every capital increase of Baht 1 million.
- Total company registration cost varies as government fee is not constant. But it is somewhere around Baht 24000 or Baht 30000.
- 7% VAT is also implied of service fee. (Baht 1190)
- Subtotal with VAT thus equals to around Baht 25000 to Baht 31000
All of them are include company registration fee in Thailand apart from consultancy fees. Remember, cost of applying visa and work permit is not included in the estimation.
Government fees are commensurate to the amount of registered capital of the company. And to acknowledge minimum amount of registered capital the company should have, we need to consider a few things:
- If a company has Thai majority shareholders with no possibility of hiring any foreigner, then the registered capital can be as little as Baht 5 per share. Because a company needs at least 3 shareholders, the registered capital can be as low as Baht 15. However, the government fee to register a company in Thailand is the same for Baht 15 capital or Baht 1M capital. So the government fee you have to pay to set up a Thai company is about 7,000 for Baht 1 M registered capital.
- The registered capital has to be at least Baht 2M if a company has Thai majority shareholders and will hire a foreigner to work for it. If the foreign employee is married to a Thai national, the required registered capital is Baht 1M. Basically, for each work permit the company sponsors, it needs Baht 2M in registered capital. As a result the government fee to set up a Thai company is estimated to be Baht 12,000 for Baht 2M registered capital. You have to pay an added amount of Baht 6,000 for each additional million.
- In case of foreign majority shareholders, the company needs to have at least Baht 3M registered capital for each kind of business you want to operate in Thailand. You will be able to sponsor one work permit with each Baht 3M capital. Therefore, if you want to operate only one business, your new company needs to have at least Baht 3M registered capital. In this case, the government fee to set up the company is about Baht 18,000 and the government fee for getting a license to operate a foreign business in Thailand is about Baht 35,000.
If you like to register a private limited company may contact us.
Our services are: (1) Company registration in Thailand (2) Accounting and audit (3) Income tax (4) Financial advisory (5) Company Secretarial (6) Virtual office rent in Thailand