Thailand’s legal framework is geared towards supporting domestic business, which is why government agencies are reluctant to provide foreign investors with the ability to hold and freely manage assets. A non-resident owner can own the capital in its entirety only if he receives an appropriate license. The government agency issues such permits only to those who have made a significant financial contribution to the development of the Thai economy, transferred any strategic technologies to jurisdiction, or provided jobs to many Thai residents.
Other foreign businessmen may own no more than 49% of the property. You can get around these restrictions by engaging in export activities only. In addition, you can take over all the management of the company and the right to sign. Only one director can manage a firm, and he can be a non-resident.
The business must regularly submit reports, be audited and pay tax fees of 30%. Some small and medium-sized companies enjoy reduced rates, however, in general, Thailand cannot be called offshore.
Registration of the Thai company
The jurisdiction of Thailand offers non-residents the following forms of business:
- partnerships – simple type, registered and with limited liability imposed on the founders;
- COO. This is one of the most popular forms among foreigners. Registration of this company is carried out in the form of an open or closed joint-stock company. The responsibility of the founders depends on the size of their contributions;
- regional office and representative office. Restrictions on the scope of activities are imposed on such firms. They cannot be associated with trading operations and have the right to engage only in the dissemination of information and the search for services for the parent company.
To register a Thai company, you need to collect the following documents:
- select and approve the name. You will need to select at least 3 unique names, English is allowed. The name is booked for a month, and there is no way to extend this period;
- draw up constituent documents: an agreement containing information regarding the company, its activities, capital, founders and the size of each of the shares. All participants and 2 witnesses must sign this document. It is drawn up in 2 copies;
- approved Status;
- certificate or extract confirming registration with the registering authority.
After the company goes through the registration procedure, it must be registered with the Tax Department, which implies the subsequent receipt of a Tax ID. This takes about 60 days. If the foreign founder needs a work permit or if the company’s turnover is over 1.8 million baht. you will need to obtain a separate certificate for VAT.
If you need to register a company in Thailand, our specialists will help you register a company quickly and efficiently. Also, you can buy a ready-made company in Thailand. Write to us in the CRM form and we will help you register a company.
Eternity Law International specialists will provide you with qualified advice on the acquisition of an offshore company, opening a bank account in any jurisdiction, as well as further support of your company’s activities at any stage.
We offer ready-made European and offshore companies. It takes 2 days to reissue documents for new owners.
If you have any questions or need advice on registering or buying a company, call us at the phone numbers listed on the website, or write to us in the CRM form located at the bottom of the page. Our specialists will answer you online.