Thai law offers a number of benefits for company registration, including free residency and minimal operating costs. This article will provide information on the different types of companies, the costs of registering a company, and how to avoid the many common mistakes that can delay company registration. Before you begin, be sure to understand all of the benefits that Thailand offers to foreign investors. This article will focus on the private limited company, which is the most common type of company.
Among the requirements of private limited company registration in Thailand is the presence of three Thai promoters. If the company has a land plan, the Land Department may need additional information. In addition, the application must be signed by the company's directors and include their full names, identity cards and addresses. It may also require certain information such as the company's source of investment and its shareholders' details. Once the application has been approved, the business will need to pay a second registration fee. The amount of this fee is 500 baht for every hundred thousand baht of registered capital.
Upon obtaining a license, the private limited company will be ready to conduct business. For registration, the company should have at least three promoters who are at least 12 years old. When registering the company, promoters should provide the requested company name and two alternative names. They should verify that the requested name does not violate any rules regarding the company's name. The corporate name reservation lasts 30 days. After this period, the company's shareholders will need to be in Thailand and have a work permit.
One of the key benefits of registering a company in Thailand is that there are no residency requirements for US citizens. The Alien Business Law of 1972 governs foreign ownership in Thailand. With this exemption, an American can operate in Thailand in the same manner as a Thai-owned company. While you cannot start your own telephone service or bank, there are many other business options available for US citizens. The only prerequisite is that the majority of the company's owners must be American citizens. The registration process takes about four to six weeks.
A newly-registered Thai company must have four employees in Thailand who pay into the social system. Alternatively, if you are married, you can have two employees. A registered capital of 2 million baht is required for the company. This capital does not need to be fully paid up in cash; it can be in the form of assets or a director loan. The company will have to pay taxes on its profits and will need to submit annual balance sheets to the Department of Revenue.
A Thai company can be registered by any law firm in Thailand. The service charge is around 2,500 Baht for company registration and provides a tax ID number and VAT to the foreign investor. In addition, law firms can help the foreign investor transfer money out of the country once the company has been registered. The service requires the presence of all promoters and shareholders, including the directors. The company must have a certificate of permission from the Ministry of Commerce in Thailand.
In addition, a company must register with the Revenue Department. This requires an application for tax ID cards. Businesses with a high annual turnover must also apply for a Value Added Tax Certificate. This fee is typically THB 5,000 to 10,000. The cost of the company license can vary according to the number of directors. Companies may opt to hire the services of an accountant or an attorney, or they can hire a company registration company.