A foreign national can have so many reasons to establish a Thai company. He may aspire of buying a property, living or working in Thailand. It’s the hope of the Thai government to form a Thailand company formation as they can earn and contribute to the Thai economy. So, this makes the foreigner have a good reason to setup a company in Thailand.
In this article, we provide you with an overview on how a Thailand company formation is done. There are a lot of steps with forms written in Thai that must be organised with supporting paperwork and submitted to many Thai government agencies. It is highly recommended for a foreigner to work with a knowledgeable and experienced English/Thai speaking attorney or other service agencies to make it happen.
One thing must be clarified with the foreigner that majority of the shares in his company must be owned by a Thai citizen unless it’s part of a BOI programme. What it implies is having the foreigner only own 49% of the Thai company. They can surpass the 49% limit if the foreign business licence is given. The licence is granted to foreign owned businesses if they don’t compete with other Thai businesses.
Companies can come in several forms and the most popular is the private limited company. In a private limited company, the directors will have unlimited liability, while the shareholders have limited liability. It requires a minimum of three advertisers, who can be a foreigner or a Thai, and own shares in the company.
The Thailand company formation begins with reserving a name of the company with the Department of Business Development. They need to submit at least three names, where the government agency chooses their name. Then they submit a Memorandum of Association with the Commercial Registration Department. This document will have to contain all details relevant to the new business, including the foreigner’s details.
In a span of three months of statutory meeting, the directors will need to submit a registration application for the company. If the business is new and is liable for income tax, then a tax ID from the Revenue Department must be secured within 60 days.