Business Registration
Company Registration – Company Setup – Business Registration
FAQ
What types of business entities may be registered in Thailand ?
Businesses can be registered as sole proprietorships, limited and unlimited partnerships, limited companies, public companies, branch offices, or representative and regional offices.
What is the most common type of business designation for foreign ownership?
A Private Limited Company is the most frequently registered type of business.
Can foreigners hold 100% ownership of a business in Thailand ?
The Foreign Business Act 1999, formerly known as The Alien Business Law, restricts business activity of non-Thai "aliens" by classifying businesses into three categories: Businesses in list one are generally closed to foreigners. Businesses in lists two and three generally require an Alien Business License for a foreigner to own and operate them.
Is it ever possible for foreigners to own other types of businesses?
The Board of Investment (BOI) has the authority to grant promotional privileges to foreign businesses so that they may engage in otherwise prohibited commercial ventures. Similarly, foreigners who have been granted permission by the Thai Government or by agreement with the Thai and a foreign government may be exempt from the Alien Business Law. Also it is possible for certain otherwise restricted businesses to obtain an Alien Business License from the Ministry of Commerce. In addition, American Citizens are exempt from many restrictions as a result of the U.S.-Thai Treaty of Amity and Economic Relations of 1966 ("Amity Treaty") .
What is the Amity Treaty?
The Amity Treaty applies to American citizens and provides certain exemptions from the Foreign Business Act allowing American individuals special rights in doing business in Thailand . For American companies this means that they may retain a majority shareholding in otherwise restricted businesses registered in Thailand . Businesses registering through the Treaty of Amity do not have to receive approval from the BOI but it may be advisable that they do so in order to attain some of the other benefits available from the BOI. Nonetheless, certain businesses, such as those in List One and the liberal professions, are still prohibited even to American companies. Read more about the Amity Treaty.
What are the steps for assembling a limited company?
The basic steps for registering a company are:
1: Register the name of the company with the Ministry of Commerce.
2: File a Memorandum of Association listing shareholders. (A minimum of 7 shareholders is required for a private limited company and 15 for a public limited company.)
3: Hold a statutory meeting.
4: Submit a company registration application with the Ministry of Commerce.
5: Obtain income tax ID card and number from the Revenue Department.
What is the registration application process like?
An application consisting of numerous documents must be submitted to the Commercial Registration Department of the Ministry of Commerce. Preliminary applications can be submitted via email. Once the Registrar agrees the application is complete and accurate the approved application can be printed, signed by partners and directors, and submitted to the Central Business Registration Section of the Commercial Registration Department. (The Thailand Ministry of Commerce requires many documents to be filed when registering a company. It should be noted that the bureaucratic process in Thailand is very thorough and requires a great deal of documentation.
How long does it take for company registration to be processed?
Processing times vary depending upon the type of business and the specific requirements necessary for each. In general, if no documents are returned and no additional documentation is required by the Ministry of Commerce the process can take as little as 17 days. Realistically however, the process involves coordinating the preparation of documents from at least seven shareholders, the company directors, and other individuals involved. Also the documents may not be submitted at one time, but have to be submitted in three stages. As a result, most company registrations take longer than 17 days.
What are the costs for setting up a business in Thailand ?
The government fee for company registration is approximately 5,500 baht per one million baht of share capital. Under a new regulation, a foreign business is required to prove they can have a specific minimum amount of capital prior to approval. This can be done in several ways; by submitting a document evidencing a bank account containing the specified amount, or with a declaration from the company director that the capital has been collected from the shareholders, or with a declaration by the company director that the capital has been collected in cash and then providing the location of the capital.
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