Foreign shareholding companies must follow guideline of private limited company registration in Thailand. Cost, professional fees and process to register a Thai company shall be discussed on step by step.
We will discuss of the following:
As name is an identity of a company that must be meaningful and generally 3 names are proposed in Thailand. Limited name is added in end of the Thai company name.
A registered name is valid for thirty days only and never extend unless re- apply. Apply for proposed name registration here.
A consultant will prepare draft MoA with necessary information and documents received from shareholders. There is minimum three shareholders are required to incorporate a limited company in Thailand.
An agreement must make between the partners (local and foreign) before prepare MoA as guideline and commence business in Thailand. Financial understanding (secret but open), responsibilities and limitation for the local partner must write in agreement.
A registered name shall be available in the first of MoA before objectives. Let the shareholders decide objectives of the company to fruitful writing in legal terms by the lawyer. As objectives are decorated by the clauses those are business activities.
A form where detail information of shareholders are written on including present and permeant address. Put said information in MoA correctly and check once again before company registration as an adviser.
Shareholding proposition, value of each share, total share capital and holding position of a company must be available in MoA.
Registered address, contact number and email must be available in MoA. All information shall be checked by the consultant and process them to register a limited company in Thailand.
Director (s) shall decide the amount of paid up capital as equity investment as process of register a limited company.
A limited company registration in Thailand can start from the day of completion of statutory meeting. Thai company registration procedure must complete with next 90 days from the date of statutory date.
Lodge all documents to ministry of commerce by the expert and wait for a week to receive certified copies.
Before application, expert or consultant shall follow either money is injected or not for purchasing shares of the capital?
Information as MoA, detail of the directors shall be available at the time of application that the consultant will ensure.
All limited company in Thailand must prepare financial statement (FS) every month and submit to Department of Business Development (DBD). At least one auditor must appoint to audit the accounts and close it within 4 months from closing date.
If any company fail to meet the compliance is Baht 50K financial penalty must be imposed.
Directors of the company must call for annual general meeting within notice period of 14 days to the shareholders to attend. In case of failure to call for meeting on time is penalty amount in Baht 10K imposed as Thailand law.
Issuance share certificate to the shareholders and book of register must maintain to avoid penalty of Baht 20K.
Any company must apply for Corporate Income Tax ID within 60 days of incorporation or commence business.
If a company has business turn over 1 point eight millions must apply for business tax or VAT, within thirty days from crossing milestone.
Government fee is Baht 7000 if paid up capital 1 million to register a limited company. Furthermore, if majority shares of the company is hold by local and 1 foreign employee is hired will be charged Baht 12000 for capital Baht 2 millions.
In case of majority share of the company is hold by the foreigner is recommended to pull up capital Baht 3 millions. Company registration fees is Baht 35000 when paid up is 3 M in Thailand.
Professional fee including Income Tax & VAT license is Baht 30000-100000. Breakdown of Thai limited company registration fees:
All of them included are company registration costs in Thailand apart from consultancy fees. Remember, the cost of applying visa and work permit is not included in the estimation.
A board meeting resolution, incorporation and MoA documents are required to open corporate account.
Government bank of Thailand and SCB are preferred banks for foreign shareholding companies to open the account.
When a company hire one or more employees must register in Special Security (as like EPF) within thirty days of hiring 1st employee.
Noted that, 6 months imprisonment of Baht 20k financial penalty if no application is made within 30 days in Thailand.
Current contribution rate is five percent whereas minimum wage is Bath 1650 and maximum wage is 15000.
Advantages of setting up a company in Thailand are:
Disadvantages of establishing a company are:
We have been receiving inquiries from foreign entrepreneurs how to register a company and how can we help to setup business in Thailand ? Some inquiries to setup business as new investors and some others like to expand same business to overseas (Thailand).
Know them before start of a company registration:
If you like to register a private limited company may contact us.