What is a Thai limited company?
In Thailand, the most common way to set up a company is by opening a Thai limited company. For a Thai limited company, your business activity does not matter. This form of company structure is very similar to the western corporations and easy to set up.
In this form of company, the capital is equally divided into shares. There is a separation between owners and management. In addition, each shareholder’s liability is limited to the amount unpaid on the shares held.
Why set up a Thai limited company?
Setting up a Thai limited company is easy and fast. Process can sometimes take only one day and only needs 3 shareholders. Thai government is encouraging business to set up a Thai limited company by easing the procedure.
How to set up a Thai limited company?
There are two types of Thai limited company: a Thai or a Foreign one. If the majority of ownership is Foreign one, then the owner foreigner will have to register for a foreign business license. For this reason, some foreigner will prefer to partner up with a Thai national to meet the criteria of the Thai company. If your company is majority owned by an American, your company can be certified by the US-Thai Treaty of Amity and be a Thai company.
5 steps are mandatory to open your company
1- Company Reservation,
Ensure your company name is not similar to ones that are already registered and make sure they are not part of the forbidden names. You must submit 3 different company names to the Department of Business Development (DBD).
2- Promoter and Shareholder meeting,
All the shareholders, promoters and directors have to meet to sign all together the memorandum of association of the Thai limited company. This MOA must be submitted along relevant documents to the Ministry of Commerce.
3- Company Registration
The company’s directors will have to submit the application to establish their company. The application needs to be submitted within 3 months of the date of the Statutory Meeting.
4- Tax registration
The business has to register for different taxes, depending on their activity. Business might have to register for the VAT (Value Added Tax) or the SBT (Specific Business Tax).
Our legal team has been assisting international and local customers to open their Thailand Limited Company. Contact us to get a reliable service at a cost-competitive price.