We will be discussing a new company registration in Thailand with fees and Proper Guidelines. There are 2 fees considering the Company Registration cost in Thailand.
They are the Government fee and the Consultancy fee. To set up any kind of company in Thailand, you must pay a certain amount of money. This money must use for the company registration.
For the actual business registration, you must submit a fixed address and provide proof of this by means of a copy of the lease agreement.
- 1 Company Registration in Thailand For Foreign
- 2 Business Entities in Thailand
- 3 Thai Limited Company
- 4 Visa and Work Permit Requirement
- 5 Registration Process
- 6 Bank Account & Paid-Up Capital
- 7 Requirements for Registration Fees
- 8 Registration Cost for Private Limited Company
- 9 Company Registration Cost in Thailand
- 10 Government fees for Company Registration in Thailand:
- 11 Registration Cost Considerations for Foreigners
Company Registration in Thailand For Foreign
Thailand is considered as one of the best countries to start a business. With increasing economies, a lot of foreign companies have come for registering a company in Thailand.
The strategic location of the country has allowed everyone to be the gateway to other destinations in the world. Big companies are interested in doing business in Thailand for the blooming of startups and tech industries.
Entrepreneurs and investors have already started doing business in Thailand for the location and benefits of the country.
Business Entities in Thailand
There are several business entities in Thailand. For the entity best for you, you must consult with a consulting firm like S&F Consulting firm. They provide the best consultation on your new business in Thailand.
S&F provides the best service for company registration in Thailand. After consulting with the consulting firm, you must choose the entity that suits you. You must make up your mind about what type of business you want to set up.
You must be aware of the Board of Investment (BOI). If your company is not a part of BOI program the majority share must be with Thai citizens. Foreigners can own only 49% of the company share.
This minority share of ownership can be exempted if you have a Foreign Business License (FBL). This license is issued to foreign-owned businesses that do not compete with Thai businesses. It usually takes a few months to get this license from the Foreign Licensing Department.
Next, you must choose the business you want in Thailand. To start a business in Thailand you must know the business entities available to you. Such business entities are:
- Thai Limited Company
- Thai Partnership / Limited Thai Partnership
- Thai Representative Officer or Branch Office
Upon consulting, S&F will suggest you the best entity. If you choose to incorporate a Thai Limited Company, then the steps on how to register a Thai Limited Company are provided below.
Thai Limited Company
A private Limited Company is one of the best forms of business in Thailand. It is required that 3 shareholders are in place. A private limited company must hold at least a 51% share to register their company in Thailand. The requirements to incorporate a Private Limited Company are:
- Minimum of three Thai Nominee
- At least one director
- An auditor
- A memorandum of association
- Statutory meeting
- Registration of the incorporation papers
- Obtain an income Tax Registration ID number
Registered companies need to hire auditors who will audit their financial statements once every year. The auditor must submit audit reports to the Revenue Department.
Visa and Work Permit Requirement
To start a business in Thailand you must have a valid permit. You will need a Business Visa or a Non-Immigrant ‘B’ to legally run your business in Thailand. You can get this visa by submitting an application to the Royal Thai Embassy.
There are 3 types of business visas. The fee of a visa for a single entry is 2000 Baht having validity of three months. On the other hand, a fee of visa for multiple entries costs 5000 Baht with a validity of one year.
Additionally, there is another visa called the SMART Visa Program. This program is relatively new and targeted at investors and entrepreneurs.
The benefits of the SMART Visa Program are the permission to stay for 4 years and exemption from work permit requirements.
Applying for a SMART visa requires qualification. If you meet the required criteria you can apply at the Royal Thai Embassy.
If you wish to register your company then the process is almost the same for all businesses.
- Company Name Search
- Registration of the company name
- Prepare and submission of Memorandum of Association
- Prepare and submission of Article of Association
- Fixing a Statutory Meeting
- Submission of necessary documents for company registration
- Registering for VAT or Tax
For more legal information on starting a new business in Thailand, visit the Government Website Department of Business Development (DBD)
Bank Account & Paid-Up Capital
The minimum paid-up capital required for a permit to legally work in Thailand is 2 million baht. This allows 1 work permit. In the case of opening a Bank Account in Thailand, it is easy.
Opening a bank account in a commercial bank in Thailand is simple. However, if you require loans from Thai Banks, it will be difficult
Requirements for Registration Fees
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 30K 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 Thai’s employed and you will need to justify the employment of the foreigner based on their skills and the requirements of the job.
Registration Cost for Private Limited Company
The official company registration cost of the memorandum of association for a private limited company is 50 baht per 100,000 baht of registered capital. The least amount you must pay for this is 500 baht and it can go up to 25,000 baht.
The official company registration cost for 1,000,000 baht of registered capital is 1,000 baht for a public limited company. The maximum cost is 25,000 baht.
Although there is 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 significant size, the revenue department may ask you to estimate turnover and pay a 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.
Company Registration Cost in Thailand
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.
- The government fee solely depends on the amount of capital, for the first Baht 1 million is Baht 6,500 and will add 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 also implies a service fee. (Baht 1190)
- Subtotal with VAT thus equals to around Baht 25000 to Baht 31000
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.
Government fees for Company Registration in Thailand:
Government fees are commensurate to the amount of registered capital of the company. And to acknowledge the minimum amount of registered capital the company should have 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 must pay to set up a Thai company is about 7,000 for Baht 1 M registered capital.
The registered capital must 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 marries 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 must pay an added number of Baht 6,000 for each additional million.
Registration Cost Considerations for Foreigners
In the 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. The government fee for getting a license to operate a foreign business in Thailand is about Baht 35,000.
- Accounting and audit
- Income Tax Submission and Filing
- Company Registration
- Company Secretarial
- Virtual office rent
If you like to register a private limited company may contact us.