Setting Up a Business in Thailand: A Comprehensive Guide

Last updated: 6 Jun 2024 | 2448 Views |

Setting Up a Business in Thailand: A Comprehensive Guide

Thailand is a vibrant and dynamic market, offering a wealth of opportunities for entrepreneurs and investors. With its strategic location, robust infrastructure, and welcoming business environment, it's no wonder that Thailand is a favored destination for business ventures. However, navigating the intricacies of setting up a business in Thailand requires a clear understanding of the legal framework and procedural requirements. This article will guide you through the essentials of company registration in Thailand and the requirements for Thai shareholders in a Thai limited company.

Company Registration in Thailand

Establishing a business in Thailand involves several key steps:

Company Name Reservation: The first step is to reserve your company name with the Department of Business Development (DBD). The name should not be identical or similar to any existing company names.
Filing the Memorandum of Association (MOA): The MOA contains essential details such as the company name, business objectives, registered address, and details of the shareholders.
Convening a Statutory Meeting: This meeting involves the adoption of the Articles of Association, the appointment of directors, the approval of the financial year, and the initial issuance of shares.
Registration of the Company: The company must be registered with the DBD within three months of the statutory meeting. This process includes submitting various documents, such as the MOA, the list of shareholders, and the details of the directors.
Registering for Tax and VAT: The company must also register for corporate income tax and, if applicable, value-added tax (VAT) with the Revenue Department.
Obtaining Necessary Licenses: Depending on the nature of your business, you may need to obtain additional licenses or permits.

Thai Shareholders Requirements

For a Thai limited company, the majority of the shares (at least 51%) must be owned by Thai nationals. This is to ensure that the company qualifies as a Thai entity and can take advantage of various benefits, such as the ability to own land and access certain business activities reserved for Thai nationals. However, foreign investors can still hold up to 49% of the shares, allowing them to maintain significant influence over the company's operations.

If there are less than 51% Thai shareholders, your company will be classified as a non-Thai company, and you will need to obtain a Foreign Business License (FBL) before you can start doing business. The FBL application process is quite complex, involving various rules and regulations, including specific laws that apply to certain nationalities or territories. Additionally, non-Thai limited companies may face restrictions on certain business activities and other limitations. Therefore, considering setting up a Thai limited company may be more suitable for your time and business requirements.

With our advice on share structuring, you can be assured that you have full control and full rights in terms of benefits from the company's dividend payments. We help structure your company to comply with Thai laws while maximizing your control and investment potential.

How PRIME Consulting Ltd. Can Help

Setting up a business in Thailand can be complex, but with the right guidance, it can be a smooth and efficient process. At PRIME Consulting Ltd., we specialize in business setup planning, share structuring, and obtaining all necessary licenses. With almost 10 years of experience, we have successfully assisted numerous cross-border businesses in establishing a presence in Thailand.

Our services include:

Comprehensive Business Setup Planning: We guide you through every step of the process, from initial planning to final registration.
Share Structuring: With our advice on share structuring, you can be assured that you have full control and full rights in terms of benefits from the company's dividend payments. We help structure your company to comply with Thai laws while maximizing your control and investment potential.
License Acquisition: We handle the application process for any required licenses, ensuring full compliance with Thai regulations.

Our fees are reasonable, and you can be assured of receiving world-class legal services. We pride ourselves on being sincere, reliable, and dedicated to your success.

At PRIME Consulting Ltd., your business is our priority. Contact us today to learn how we can help you achieve your business goals in Thailand.

Our initial consultation shall be for free of charge. So please do not hesitate to contact us to find out how we can provide you with the best solution that perfectly fits for your requirements.