Company Registation in Bangkok

The setting up of a company in Thailand needs to be done correctly and it is vital that all business entities are safe and secure. At B-Corp we specialise in just that and offer a complete ‘one-stop’ service. Our team of experts have years of experience in registering companies and are fully conversant in all facets of Thai law.

If you have lived in Thailand for any length of time you perhaps already be aware of the many complications and pitfalls that can be caused by the company being incorrectly setup. However, thanks to our expertise you will discover that setting up a company has never been easier. There have been plenty of rule changes in recent years and this includes a series of new incentives that are offered by the Thai government.

These incentives include tax-breaks, easier access to work permits and other options that now open new horizons. All business structures must follow the Foreign Business Act but there are several different business types that can be used by foreigners such as a sole proprietorship, an ordinary or limited partnership, a representative, regional or a branch office, a joint venture, a limited company or even a foreign company. Below we look at the options that are available.

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Thai Limited Company

This the common method of starting up a new business in Thailand. This is effectively the same as a Limited Company (Ltd) or Limited Liability Company (LLC) – perhaps terms that you are more familiar with. The major difference between a Thai Limited Company and a Ltd or LLC is the time that it takes to get established.

The registering of the Articles of association and Memorandum of Association with the Thai Ministry of Commerce is probably the most time-consuming process. The Articles of Association can be tailored to your business requirements but proof must be provided in writing that the original shareholders agree to these terms. This is to obviously protect investors and other interested parties and should be viewed as merely part of the process.

Advantages and Disadvantages of a Thai Limited Company

Perhaps the key advantage with this type of company structure is the fact that it is like that in other countries and therefore understood by business people from across most continents. Although they may feel that they have no previous knowledge of business in Thailand the familiarity no doubt eases many concerns. If you are not aware, all Limited Companies will have directors and shareholders. The limited liability aspect means that a shareholder is only placed in a position where he or she could only lose the capital that they invested. In simple terms, if the company were to make large losses, they would not be responsible to pay these personally, not legally at least.

As an addition to the fact that Thai Limited Companies are, overall, easy to understand, they are a fantastic way of providing a means for individuals to legitimately generate revenue and therefore profits. Thailand has dual taxation agreements established with most western companies, but for those few that haven’t, there are several legal methods that can be used to reduce the effect. This includes using profits for the salaries of directors and shareholders, something that is perfectly legal so long as it is correctly shown in the financial statement.

Many foreigners who are investing in Thailand will have natural concerns regarding trust. This is reduced when you consider that the rights and obligations of all parties are already in writing. Therefore, complex grey areas and question marks of responsibilities and privileges are removed with the documents required to kept for future reference

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Company Registration.

Some other options
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1.

Foreign Business License (FBL)

The aforementioned FBL allows for the Thai Limited Company to become foreign owned. For this to be granted, the company needs to demonstrate that it will beneficial to Thailand.

2.

Board of Investment Company (BOI)

This is perhaps the best known alternative method of starting a business in Thailand. The Thai government offers many incentives such as tax-breaks and greater assistance to encourage companies to invest in Thailand.

3.

US Treaty of Amity

The US and Thailand have an exclusive agreement known as the Treaty of Amity. This allows for US citizens to own a Thai Company outright. This facility is not open to nationals of other countries.

4.

Representative Office or Branch Office

A representative or branch office allows for foreign registered companies to conduct business in the Kingdom of Thailand. There are several restrictions that are imposed so these need to be investigated properly.

5.

Thai Export Company

A Thai Export Company can be 100% foreign owned on the condition that all revenue is generated from THAI goods outside of Thailand.

6.

Thai Manufacturing Company

Like a Thai Export Company, foreigners may own a company that is designed to manufacture goods that are for export only.

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How easy is it to setup a Thai Limited Company?

Arguably, the formation is as easy now as it ever has been and can be completed in a matter of days. Prior to the rule changes, before 1 July 2008, the process would take around six weeks – in the main part, due to red tape and need for seven shareholders as opposed to the three that are required these days. The move was unquestionably one designed to generate growth and encourage greater investment in Thailand with the process even being streamlined further recently.

These streamlined methods, many of which involve how companies are setup and the time taken to do so has meant that foreign investors feel more comfortable. It is possible for Thai company to be majority owned by a foreign national, but that foreigner must obtain a Foreign Business License. The process can still be quite complex and Thai majority owned companies have no restrictions imposed on them. As a result, most foreigners go into business with a Thai business partner to ensure that they qualify as a “Thai Company” for legal purposes.

Advanced store statistics.

At B-Corp, we know that all businesses will need to make changes from time to time. We therefore, offer a range of other services in addition to company registration that are designed to make running a business in Thailand as straightforward as the initial setup. Therefore, we offer corporate secretarial services and accounting to help with things such as registering the company name, filing the memorandum of association, statutory meeting, registering the company, registering for income tax and VAT and opening a corporate bank account

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Need help with your Company Set-up? Contact us