BUSINESS REGISTRATION

When you think of Thailand, what are the things that come into your mind? Tropical heat? Beautiful beaches? Thai food? What about an attractive place for investment?

Thailand is good for investment for following reasons:

1. Strategic location. Located in the heart of ASEAN which is good for cross-border trade.
2. Being a member of bilateral Free Trade Agreements (FTAs) and the ASEAN Free Trade Agreement (AFTA)
3. Thai government’s constant efforts in attracting the foreign investment by streamlining bureaucracy and offering initiatives. 
4. Strong infrastructure to support the economy.
5. Growing middle class.

The limited company is the most prevalent form of doing a business in Thailand due to the fact that it offers shareholders the limited liability and the credibility to stakeholders.

1. A Thai Majority-Owned Limited Company

To be considered as a Thai majority-owned limited company, the company’s shareholding structure must be consisted of at least 51% of Thai nationals. Given that it is Thai majority-owned, this particular type of business form generally does not encounter business restrictions.

2. A Foreign Majority-Owned Limited Company

The criteria to be a foreign business is to have a shareholding structure that has more than 49% of foreign ownership. In most cases, a foreign majority-owned limited company will be governed by the Foreign Business Act(FBA). Hence, any business entities owned majorly by foreigners are mandated to acquire a Foreign Business License before conducting a business in Thailand.

If you are interested in forming a company, we are at your service to go through the company registration process for you.

In unfortunate circumstances, a company might need to close down due to unfavorable market conditions, ongoing loss, fierce competition, fluctuation in demand and supply, or other reasons. To dissolve a company, there are steps that must be carried out with precaution and require expertise. We are happy to help you with the dissolution process.

In Thailand, it is compulsory for a company to register for social security for employees whose age between 15 to 60 years old within 30 days, starting from the first day of an employee working. Legally foreign workers are also required to be registered in order to receive the same social security benefits as Thai employees.

According to the Social Security Act in Thailand, employers and employees are required to contribute to the Social Security Fund on a monthly basis. The contributions must be submitted to the Social Security Office within the date of 15th of the following month.

To ease your burden, we can assist you with the Social Security registration process and the monthly submission of Social Security contributions.

In normal circumstances, the company that has an annual income at least 1.8 million THB has to register for VAT, unless it provides certain types of goods and services that are VAT-exempt. However, despite being in a business that is VAT-exempt, some companies might voluntarily want to register for VAT in order to get a tax credit or VAT refund, but the downsides are that they have to charge their customers at a higher price for their goods or services and they have an obligation to submit monthly VAT returns.

Indeed, there are pros and cons of being in VAT system. You might need special consideration to make a decision and we can help you by offering some advices as well as assisting you with the VAT registration process.