Thailand is popular for its warm and hospitable society. It is opened to all religions, cultures and even foreign investors. The country’s economic growth has in recent years drawn the interest of most investors from across the globe, each wanting to hit a fortune by setting up a company. The government support, skilled workforce and adequate infrastructure make investors more convinced to start business in Thailand. Businesses in Thailand are governed by a binding legal system that each foreigner must comply with before setting up any type of company.
If you are looking to start up a business in Thailand, here is a process that you should follow.
Request approval of your company’s name
Before you establish a company, you must first apply with the DBD, Department of Business Development for permission to use your preferred company name. You can do this by searching on DBD website to see if your name of choice is already in use with another company. Registering your company with the department in person will cost around THB$20 but online registration if free.
Open a bank account
You must open a bank account to deposit 25% of the business capital as Thai law stipulates upon approval of memorandum of association, Make sure to confer with a reputable Thai business lawyer for appropriate memorandum format. The business is to hold the statutory meeting, and all shareholders are supposed to pay 25% of the registered capital.
Obtain a corporate seal
While the sole documents that need a company seal are the company share certificates, most companies do apply for corporate seal to other documents. The main purpose of doing this is to confirm the authenticity of a particular document. Corporate seals range anywhere between THB 300 and 500 based on the supplier. Most office supply stores usually supply corporate seals after 4 days of processing time.
Register your company
Request the approval of memorandum of association and register your company as legal entity with the PLCR, Private Limited Company Registrar. The application for memorandum application is done only in Thai language, but in case the company’s name is foreign, it should appear in both languages during the application process. The application must include details about the business, its promoters/founder as well as the number of shares. The documents are sign before both the registrar and the lawyer.
Register for taxes
The taxpayer identification is issued with Revenue Department after registration. The value added certificate is then issued and mailed separately. Thailand has very strict filling requirement for businesses earning THB$1, 800,000 and more annually-they must also report each month. The registration procedure is free of charge and takes three days to complete.
Register with Workmen’s Compensation Funds
Register with Workmen’s Compensation Fund at Social Security which is part of Labor Ministry. It only takes a day and no fee is required. The company’s work regulations are filled with district of Office of Labor Protection as well as Welfare of Ministry of Labor. The rules and regulations are usually posted on the premises within fifteen days of hiring ten or more employees.
Thai government makes setting up a company relatively simple. Investors looking to start up a business in Thailand need only to deal with few governmental agencies and once their companies are approved by Department of Business Development; it is absolutely free to begin the operations.