Are you looking to expand your business into Thailand? Getting accurate information about professional company registration in Thailand is the key to making the process seamless.
This article provides an overview of the process for registering a Thai company, getting your company into the Thailand company registry – from selecting a corporate structure to submitting the required paperwork.
Steps to register a Thai company:
1. Choose a company name
The first step in registering a Thai company is to choose a company name. The company name must be in Thai and must include the word “Thai” or “PLC” (Public Limited Company).
You can reserve your company name online at the DBD site. Normally you will get approval within one to three days.
All shareholders of the company are required to sign an MOA (Memorandum of Association) after approval of the company name. The following details have to be submitted to the Ministry of Commerce along with the MOA:
- Names of shareholders
- The registered capital
- The company’s address, and
- The scope of activities you intend to carry out in the first year.
2. Choose a company type
The next step is to choose the company type. There are three types of companies in Thailand: private limited company, public limited company, and limited partnership. A Thai Limited Company is one of the most common legal forms required to operate any type of business in the country.
As per the law, Thai Limited Companies should have at least three shareholders, and a Thai legal entity (individual or a company) must hold the majority (51%) of the company’s shares.
The company should hold a statutory meeting where the articles of incorporation and by-laws are drafted and the auditor and board of directors are appointed.
3. Register the company
The next step is to register the company with the Ministry of Commerce within 90 days of holding the statutory meeting. This can be done online or through a registered agent.
You will need to provide the following information in your registration application:
- The number of shares allotted or subscribed
- The amount paid on each share
- The names, addresses, and occupations of the directors
- The address of the company’s principal office and branches
4. Register with the Revenue Department
Once registered, you will be issued a company registration certificate and an income tax number.
After receiving the registration, you need to apply to the Revenue Department for a Tax ID number and VAT (value-added tax) if the annual turnover is above THB 1.8 million.
5. Apply for an Alien Business License
The fourth step is to apply for an Alien Business License if you are not a Thai citizen. This is necessary if your business will have a physical presence in Thailand.
6. Work permit and social fund registration
Apart from obtaining work permits, you will need to ensure your Thai employees are registered in the Thai Social Fund system.
The whole process of starting a company in Thailand can take up to two months, so it’s best to start planning your expansion well in advance. Expanding your business into a new country can be a daunting task, due to regulations and protocols you may be unaware of.
By leveraging Link’s PEO/EoR services you can fast-track your business expansion process in Thailand. Links’ specialist Asia-Pacific team ensures businesses are compliant with local regulations and in-country team will be able to help you deal with any issues quickly. Using PEO services can save you up to 10X the costs compared to setting up a local entity and businesses can also onboard someone in as little as 48 hours!
To learn why best in class businesses are choosing to use PEO/EoR services, contact our team now!
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