Do you have an idea that you would like to turn it into a business? Thailand is the best place from where you can successfully run your business and turn it into something big. The country is proud of its advanced infrastructure, skilled workforce and adequate support from the government. When all these aspects are combined, a business should expect nothing short of a success story. Just like other economic powerhouses, there are laws and regulations that you should follow when registering a company in Thailand. This article is going to give you smart insights on what you should know before you decide to register a company in Thailand.
Businesses structures that are allowed in Thailand
There are different types of business structure that you can open in Thailand. The structure of your choice depends on how you intend to run the business and your ultimate goals. Some types of businesses that you can open in this country include:
– Partnership; Thailand allows three types of partnerships which are Registered partnership, Ordinary partnership, and Unregistered ordinary partnership
-. Limited companies: Under this category, you can open a private limited company or a public limited company.
-Representative office: These mainly exist to represent the mother company that is in an overseas country.
– Joint venture: Formed by a group of people who enter into an agreement to run a business activity.
Steps to follow when registering a company in Thailand:
- Name reservation
Your company must have a unique name that will be identified by the clients and customers. The name should not have any close similarity with any existing business entity in Thailand and even beyond the borders. Even before you proceed with the name searching process, you should read the guidelines that have been stated by the Business Development office in Thailand. This is to avoid any conflicts as some names are not allowed. Once the name has been approved, it will be only valid for 30 days.
- Submit the Memorandum of Association
You will be required to submit the company’s memorandum of association to the Business Development Office. This document contains the basic information about the company such as its name, physical location, the names of the promoters and the objective soft the business. The memorandum of association also contains the capital value which is the information about the shares owned by each owner of the company.
- Statutory meeting
The owners of the company convene a statutory meeting so as to lay down the rules that will govern how the internal affairs of the company will be run. The directors of the company are also elected during the meeting.
- The actual registration
The directors should submit the details of the application in a period of less than three months after the statutory meeting. The company registration fees in Thailand may vary depending on the registered capital. For instance, you will pay a fee of 500 baht for the registered capital of 100,000. The lowest fee that one can pay for registering is 5000 baht while the maximum fee is 250,000 Baht.
Tax Registration
As long as you are a legal company, you must pay taxes. You should get a special number and tax I.D card from the Thailand Revenue Department in less than two months after incorporation. In some cases, you may be required to register for the VAT tax especially if you are in the processing industry. Once you have been cleared by the Revenue Department, you will be ready to commence with your operations.