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  Thailand Articles

15 Feb 2008 20:31:10 GMT

Company Registration in Thailand:

A 10-Point Checklist

1. Registration: Reservation of name is the first item to attend to in company formation and can be done online. The name of the company must not be identical to the name of any existing company , or so nearly resemble the name of any existing company as to lead to confusion. It is recommended that applicants reserve three names, ranked by priority of interest, to maximize chances of success.

2. Registered Address: A company must maintain an office in premises which it physically owns or rents, or has consent from the landlord to use.

3. Promoters: At least seven individuals, who must all sign a Memorandum of Agreement, are needed to incorporate a company.

4. Registered Capital: Generally, there is no minimum capital requirement for Thai-majority-owned companies. Foreign- majority-owned companies are required to have at least           2-million baht (or 3-million baht, depending on the type of business). The capital of the company must be divided into shares, each with an equal par value of at least 5-baht. Minimum paid-up amount on the shares issued is 25%, which can be used as working capital. Alient employment law, however, requires at least 2-million baht registered capital (fully paid up) to qualify for one work permit.

5. Objectives: It is common to register an extensive list of activities as the objectives of the company. However, for VAT registration purposes, only the actual activities of the company should be registered. It is strongly recommended that applicants check the intended activities against the list of reserved businesses under the Foreign Business Act (FBA) prior to registration for potential effects on shareholding structure.

6. Shareholding Structure: Shares in a company can be, in theory, 100% owned by foreigners, who can be individuals or entities, unless the intended businesses are reserved for Thai nationals only under the FBA, which requires the company to apply for an alien business license prior to commencement of business. However, such licenses are rarely if ever granted. Under the Thai-US Treaty of Amity, companies may be 100% American owned if the company has been registered as a Treaty of Amity company. However, it is reported that no new requests for Treaty of Amity registration are being granted.


7. Articles of Association (By-Laws): These are regulations of the company itself, concerning its internal affairs such as share transfer, directors’ and shareholders’ meetings, and matters requiring formal corporate approval.


8. Directors: A company is managed by at least one director under the control of the general meeting of shareholders. However, it is more convenient to the operations of the company to have at least two directors in order to convene a Board meeting. There are basically no restrictions on the nationality of directors.


9. Tax Registration: A newly-established company must obtain a taxpayer identification card from the Revenue Office for tax purposes. If it is expected that its gross revenues will exceed 1.2-million baht per year, it must also register for the Value Added Tax (VAT).


10.Government Fee and Time Frame: The government fee for       company formation is charged at the rate of 0.55% of the registered capital, with a maximum of 255,000-baht. There is also a certification fee and stamp duty of about 1,000-baht.


The whole process takes about 3-4 weeks to complete.



(Legal requirements for, and the cost of, company registration       may change from time to time as dictated by the Government.)


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