Due to the economic growth in Thailand, many foreign investors from different countries have wanted to start business in Thailand. Amidst industrial and economic growth, setting up and opening a company in Thailand can be equivalent to striking a fortune. In this post, we will give you some important information about company registration in Thailand.
Why Are Foreign Investors Interested in Thailand?
Foreign investors have been inclined towards Thailand because of sufficient infrastructure, Government support and cost-effective workforce. Besides these reasons, a business may prosper in Thailand because of many different factors.
Some of these include political stability, social stability, policies promoting free trade and location. Unfortunately, if you want to start a business in Thailand, it is a prolonged process. This is because of numerous permits you need to obtain before setting up a new business.
Start Business in Thailand – Company Registration
Before you start the procedure of registering a company, it is important to be sure about the type of company you want to set up in Thailand. You can register three different types of companies in Thailand, including Thai Partnership, Thai Representative Office and Thai Limited company.
In a Thai Partnership, joint partners share unlimited liability for all kinds of the company’s obligations. Each partner in the business is liable for debts and taxes associated with the company. On the other hand, the Thai Limited company and Thai Representative Office are similar to each other.
However, there is one basic difference between both of them. A partnership with the Thailand Representative Office has limited liabilities, while a Thai Limited company has joint and unlimited liabilities. It is important to understand that forms, procedures and documents are in Thai. Therefore, it is always better to hire a professional lawyer or a company like Servcorp, before you start business in Thailand.
Basic Procedure of Registration
If you know certain important things about registering a company in Thailand, the whole process becomes much easier for you. First of all, you need to submit an application for permission of using a name for your company. This can be done by registering at the Department’s Registrar or website.
Capital should be deposited in a bank. 25% of the registered capital should come from shareholders. It is also important to obtain a corporate seal to affix company’s share certificates. Once you are done with this, you have to get approval for the company’s memorandum of association. You also need to register the company at the registrar to make it a legal entity.
You need to include some basic information in the application for memorandum of association. This information includes company name, number of shares and their value, nature of business, physical address, and ages of promoters and so on. All the promoters need to sign the application.
Wherever the company’s head office is located, you have to submit company works to the Office of Labour Protection & Welfare and the Ministry of Labour in the same district. Before final permission is granted, your application will be reviewed by these offices.
In order to start a business in Thailand, you may have to wait for about two to four weeks for the process to complete. Therefore, it is important to be careful while submitting applications. Seeking professional help will be a smart choice.