Thai Limited Company Registration is a popular choice for international investors due to its many benefits. Some of these include: 100% foreign ownership, preference share structure, and the ability to hire foreign employees.
The first step in registering your company is choosing a name and submitting it to the department. You must also call a statutory meeting during which the articles of incorporation are drafted and directors and auditors are appointed.
The process of setting up a Thai limited company may seem labyrinthine, but with a solid plan and adherence to strict regulations, entrepreneurs can navigate it with ease. The first step is choosing a company name, which is vital for establishing brand identity and ownership dynamics.
The name must be unique and cannot be identical to any pre-existing companies. It must also end with “Limited.” The name can be in English, but it will need to be translated and registered in Thai.
Our team of experts can help you choose a name that will meet all requirements. We can even reserve a name for you and assist in preparing the Memorandum of Association (MoA). We can also help you create a bank account and obtain any necessary sector-specific licenses.
Upon successfully reserving a company name, the promoters need to submit a Memorandum of Association to the Registrar of Companies. This document should include the company’s name, its province of incorporation, business objectives, registered capital, and the names of at least three individuals who will be the company directors.
Then, the company directors will convene a Statutory Meeting to approve the memorandum of association and its articles of incorporation. This is the legal document that will determine how your company operates in the future. It will also specify the company’s authorized capital and number of shares. It must also include the personal details of all of the shareholders.
The directors of a Thai limited company are responsible for the daily operations of the business. These include completing activities that meet the company’s objectives, paying dividends to shareholders, and calling a statutory meeting.
The most common structure for a foreign business in Thailand is a private limited company. It is well-suited to most businesses and provides strong investor protection and supports foreign work permits.
Foreign investors can own up to 49 percent of a private limited company, but must secure a Foreign Business License or be promoted through the BOI scheme. A Foreign Work Permit must also be secured. The company must prepare financial statements within four months of the fiscal year end and submit them to the Department of Business Development.
The Civil and Commercial Code states that a Thai limited company has to establish its capital in one of the methods prescribed by the law. It is also required to make a tax prepayment.
The shareholders and directors of a limited company must have a clear understanding of their rights and duties. The MoA must clearly state the financial standing, responsibilities and limitations of each party.
Generally, the majority of a Thai limited company shares must be owned by Thai nationals. However, it is possible for non-Thais to own 100% of a limited company if the business falls under certain criteria, such as registration through the Treaty of Amity for Americans.
Creating a company bank account is one of the main benefits of a Thai limited company. This allows the company to open a corporate savings and checking account, and also provides online banking functionality.
A company bank account can only be opened by a registered Thai limited company. In order to get a company bank account, the company must file a memorandum of association and hold a statutory meeting.
It’s important that the company follows strict financial requirements. Annual financial statements must be certified by an auditor and approved by the shareholders. These statements must be submitted to the Commercial Registration Department and the Revenue Department.
After registering your company, you can apply for a corporate tax ID card. This will allow third parties, such as banks or private money lenders, to examine the company’s financial standing. It will also help them determine if the company is reliable.
Companies with a foreign majority ownership face restrictions on their activities in Thailand, but Plizz can advise whether or not your business will be eligible for registration. A registered Thai limited company can also open a corporate bank account, including a savings and checking account, and foreign currency accounts.