Thailand is the largest economy in south East Asia, second to Indonesia. Setting up a company and doing business in Thailand is straightforward and easy. Investors willing to set up business in Thailand can consult good lawyers or consultants, who can guide them regarding all the legal matters required for the registration of the company and doing business and obtaining the necessary permits and licenses.
In order to set up a business and do company registration in Thailand, you need to know about the business laws and regulations of the country. Here is a step by step guide on how to set up business in Thailand
- The Foreign Business act of 1999, governs all the foreign businesses in the country. The law contains all the provisions regarding the acceptable business activities for foreign nationals, license requirements, ownership rules and prohibited activities. All the foreign businesses should strictly adhere to the act, failing which will attract serious penalties and jail term.
- Foreigners can start a limited partnership firm, representative office or branch office of a company or a Limited company in Thailand. Foreigners can register private and public limited companies in Thailand but they must strictly adhere to the ownership rules before applying to register the company and start business.
- Having a nominee shareholder in the company who does not have any financial stake and interest in the company is strictly prohibited by the law.
- Getting the company registration in Thailand as a Thai majority company is beneficial for foreign nationals. Thai majority companies require less capital and need fewer licenses and permits when compared to Thai minority companies. Thai majority companies can also purchase land in the country, when need arises.
- The capital requirement for company registration in Thailand and obtaining the foreign business license is THB 3 million per business activity. It is TBH 2 million for a Thai majority company and THB 1 million, if you have a Thai spouse.
- All the companies doing business in Thailand or generating income from the country should pay the Corporate Income Tax levied by the government.
- In order to acquire a business or do company registration in Thailand, foreigners will need a non-immigrant ‘B ‘business visa. The business visa can be obtained from the Thai embassy at your home country.