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Company Registration In Thailand

Detailed guide on Company registration in Thailand explaining the procedures, documentation, prerequisites, and benefits of registering a business in Thailand.

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Company Registration in Thailand in 2023-24

Thailand is a nation in the heart of Southeast Asia’s continental territory. The strategic location of the nations makes it convenient for entrepreneurs to access the ASEAN markets, and have access to approximately 666 million consumers. Thailand’s economy has been developing at an incredible rate in recent years as a result of rising investments in the country. 

Company Registration In Thailand

Entrepreneurs from all over the world prefer company registration in Thailand due to the nation’s robust government incentives, adequate infrastructure, and highly trained and reasonably priced labor force. Additionally, the Thai government has a corporate-friendly policy and encourages foreign direct investments, guaranteeing that the economy is open and accessible for corporate operations.

This article will briefly discuss how an entrepreneur can register a company in Thailand. It will cover the steps, required paperwork, requirements, and advantages of company registration in Thailand will be explained.

Procedure for Company Registration in Thailand

procedure for company registration in thailand

The procedure for company registration in Thailand is briefly discussed below:

Step 1: Register a business name

The first step for company registration in Thailand is to register the business name with the Department of Business Development (DBD). It is better to provide at least 3 names in order to have better chances for the name to be selected. The name would be available for 30 days after it is authorized.

Step 2: Submit the Memorandum of Association

‍A Memorandum of Association (MOA) must be created and submitted to the DBD. An MOA contains information about a firm, such as its name, the region in which it will be situated, its business activities, etc.

Step 3: Organize a statutory meeting

The next step for Thailand company registration is to organize a statutory meeting. This meeting is held to present the bylaws of the organization and also the articles of incorporation are created in this meeting. Additionally, the directors and auditors of the firms are also chosen in this meeting. This type of meeting is typically held as a necessity prior to registering a corporation in Thailand.

Step 4: Register the business

Within three months following the day of the Statutory Meeting, an application to register a company in Thailand along with the required documents must be made at the Department of Business Development. The business application has to be submitted to the DBD within 90 days following the statutory meeting. The application must include all relevant details of the firm.

Register for VAT

The candidate would be required to apply for corporation tax and VAT after the business is registered. Businesses must get a Tax I.D. card and a registration number from Thailand Revenue Department within 60 days after the firm has been established.

Open a business bank account

Following registration of the business, the business can open a business bank account in Thailand and can utilize online banking services.

Register for Social Security

Within 30 days after recruiting the first employee, a business has to enroll with the Social Security Administration.

Documents Needed for Thailand Company Registration

Here are the documents needed for Thailand company registration:

  • Memorandum of Association
  • Articles of Association
  • Paid-up share capital details
  • Business name and activity
  • Details of the shareholders and directors of the firm
  • Registered office location details

Business Entities for Company Registration in Thailand

Here are the various business entities that entrepreneurs can choose from in order to register a company in Thailand:

1. Thai Limited Company

A Thai Limited Company also called a Private Thai Limited Company, is the most common type of corporate structure in Thailand. At least 3 stockholders and a minimum of 1 director are required for a Thai Limited Company. Every stockholder’s responsibility is capped at the par value of their stock.

2. Partnership

An arrangement between two or more people to operate a company as co-owners results in the formation of a certain sort of entity known as a partnership.

Thailand has two distinct forms of partnerships, namely:

  • Ordinary partnership: In the case of an ordinary partnership, each of the partners is equally and severely responsible for all of the partnership’s debts. The ordinary partnership can be formed by a minimum of two people, and each member is required to make contributions.
  • Limited partnership: In the case of a limited partnership, there are two different sorts of partners, one with limited responsibility and the other with unlimited liability.

3. Joint Ventures

Foreign entrepreneurs conducting operations in Thailand frequently employ joint ventures as their organizational structure. Joint ventures are treated as contractual matters under Thai law, and the participants in a joint venture continue to be independent legal entities aside from when applying for permits or tax certificates.

4. Branch Office

A branch office is essentially an international business that establishes a branch in Thailand to represent its presence there. The international firm’s Thai branch is only an extension of its overseas head office and is not regarded as a distinct legal entity from the latter. In Thailand, a Branch Office is permitted to generate revenue.

5. Representative Office

Establishing a Representative office is an ideal option for international corporations that wish to establish a presence in Thailand without needing to register for a foreign business license. Representative offices are not allowed to generate revenue in Thailand and can only engage in operations like planning for marketing and advertising, providing technical support, providing training, etc.

6. Regional Office

Regional Offices in Thailand are not allowed to carry out any sort of commercial activity or are engaged in any sort of revenue-generating operations in Thailand. These corporate entities must rigorously adhere to regulations that limit what they can do on behalf of the statute-designated foreign head office.

Such corporate structures can only engage in the activities listed below:

  • Financial management or consulting services
  • Training and personnel growth
  • Marketing supervision and sales promotion, etc.

Eligibility for Thailand Company Registration

eligibility for thailand company registration

The eligibility criteria for Thailand company registration are listed below:

  • Shareholders: At least 3 stockholders are required to form a Thai Limited Company.
  • Directors: At least 1 director is required to register a company in Thailand.
  • Capital requirements: In accordance with the Foreign Business Act, non-restricted international enterprises existing in Thailand must have a required registered capital of 3 million THB, whereas restricted international corporations must have 2 million THB.
  • Statutory meeting: A statutory meeting must be organized before doing Thailand company registration.
  • Registered Office: It is necessary for the company to have a registered office in Thailand.

Tax Structure in Thailand

Thailand-based corporations are subject to tax on their global revenue. Foreign-incorporated businesses are taxed on the profits that come from their operations in Thailand.

Here are the various business taxes that must be paid by an entrepreneur if they conduct commercial operations in the country.

  • Corporate Income Tax (CIT): The CIT rate for corporations in Thailand is 20%.
  • Value-added tax (VAT): Sales of commodities and the delivery of services are both subject to VAT. The normal rate of VAT in Thailand is 7%.
  • Stamp Duty: Based on the kind of documentation, stamp duty can be as low as THB 1 per THB 1,000 of value for the majority of agreements or as high as a fixed price per instrument for the majority of commercial and other papers.
  • Social security contributions: Each worker must pay social security contributions at a rate of 5% of their monthly wage, up to a cap of THB 750 per worker every month.

Cost to Register a Company in Thailand

The cost to register a company in Thailand depends on several factors like business registration fees, government fees, business license expenses, etc.

  • Government fee: For Baht 1 million in registered capital, the government charges approximately 7,000 to form a Thai corporation. The government charges approximately THB 12,000 for a Thai business with a registered capital of THB 2 million and approximately THB 6,000 for each subsequent million.
  • Company stamp: For a corporation stamp, an entrepreneur has to pay approximately 500 THB.
  • Service charge: The service charge for registering a company is 20,000 THB.

There can be numerous other costs associated with company registration in Thailand such as bank account opening fees, office space costs, costs related to the license application, and so on. In order to have a better idea, it is best to consult with professionals from Odint Consulting.

Why Register a Company in Thailand?

  • Thailand is a sizable consumer market with access to over 69 million people.
  • The World Economic Forum ranks Thailand as having the 40th most enticing consumer market around the globe.
  • In South East Asia, Thailand is regarded as having the fourth-best railways, roadways, and aviation transportation systems.
  • Thailand is Southeast Asia’s leading producer of cars, hard drives, and rubber goods.
  • Thailand is one of Asia’s major tourist destinations.

Advantages of Company Registration in Thailand

Here are the advantages of Thailand company registration:

Favorable Location

Geographically, Thailand is located in the middle of the majority of the ASEAN nations, providing entrepreneurs with quick access to the region’s newly developing marketplaces. Thailand has the benefit of ease of trade with China and India markets due to its central location within ASEAN. As a result, Thais can now reach a large and growing international customer base.

Manufacturing Center

Thailand is among the globe’s biggest centers for manufacturing. Manufacturing businesses have access to a variety of advantages, including export incentives and import subsidies. In addition, the Thai government provides incentives for international investment. For a variety of industries, the government has flexible regulations for international investment.

Affordable Workforce

When compared to western nations, Thailand’s personnel are renowned for being more affordable. According to the Board of Investment, 94% of Thai men and 90% of Thai women are educated. This implies that any international entrepreneur will be able to gain access to a sizable pool of qualified and competent labor that could prove to be beneficial for their businesses. 

Modern infrastructural facilities

Modern infrastructural facilities is another crucial advantage of Thailand company registration. Thailand’s large highway network, international ports, and public transportation systems throughout cities facilitate trade and commercial operations in the country.

Conclusion

Company registration in Thailand offers an entrepreneur numerous advantages. The country’s strategic location and advanced infrastructural facilities make it easy to conduct trade between the nations. The educated and reasonably priced labor force makes it easier for companies to hire qualified personnel. Thailand is a wonderful place to launch a business in the manufacturing sector as companies in the manufacturing sector can access several advantages such as lower wages in the manufacturing sector, import incentives, and export advantages.

You can speak with our business formation expert if you want to register a company in Thailand. From filing your application with the relevant authorities to assisting you with acquiring the various licenses, our experts will assist you in every step. Contact us today to register a company in Thailand.

FAQ’s

For THB 1 million in registered capital, the government charges approximately 7,000 to form a Thai corporation. The government charges approximately THB 12,000 for a Thai business with a registered capital of THB 2 million and approximately THB 6,000 for each subsequent million.

Entrepreneurs from all over the world prefer company registration in Thailand due to the nation’s robust government incentives, adequate infrastructure, and highly trained and reasonably priced labor force. Additionally, the Thai government has a corporate-friendly policy and encourages foreign direct investments, guaranteeing that the economy is open and accessible for corporate operations.

The following companies can be registered in Thailand:

  • Thai Limited Company
  • Partnership Firm
  • Joint Ventures
  • Branch Office
  • Representative Office

Every business, including an overseas company, has to pay taxes in Thailand. Foreign-incorporated businesses are taxed on the profits that come from their operations in Thailand.

An application to register a company in Thailand along with the required documents must be made at the Department of Business Development.

  • Strategic Location: The country’s strategic location and advanced infrastructural facilities make it easy to conduct trade between the nations. 
  • Qualified Personnel: The educated and reasonably priced labor force makes it easier for companies to hire qualified personnel.
  • Manufacturing Hub: Thailand is among the globe’s biggest centers for manufacturing. Manufacturing businesses have access to a variety of advantages, including export incentives and import subsidies.