How to Start a Company in Thailand : 10 Things to consider when setting up

How to Start a Company in Thailand? Particularly if you’ve never been there before and don’t know where to begin. However, if you take the proper actions, your company may have a very bright and successful future. This guide was written particularly 

Let’s talk about the steps involved for foreigners and how to start a company in Thailand. 

What does Thailand have to offer?

If you’re interested how to start a company in Thailand, we can help you by providing a brief overview of the country and the key factors that make it an attractive choice for your startup or expanding business.

Strategic Location:

Thailand’s strategic location acts as a gateway to Asia which has made it a popular destination for businesses. Thailand’s ability to facilitate easy trade with ASEAN (Association of Southeast Asian Nations) nations like China and India has grown rapidly, therefore increasing the country’s demand to foreign companies.

Growing Economy:

Over the last few years, Thailand has experienced significant economic development, ranking as one of the countries with the second-highest GDP in Southeast Asia. In 2019, Thailand recorded a Gross Domestic Product (GDP) of 543.65 billion US dollars. The availability of natural resources, export demand, and a thriving consumer market are some of the factors that have contributed to Thailand’s economy’s steady and consistent growth. Since then, economic development has also resulted in an expansion of many different industries; in the upcoming years, it is expected that the tech sector will experience exponential growth, attracting the attention of investors, entrepreneurs, and major corporations.

Excellent Education and Healthcare Services:

Thailand offers a wide range of international schools, colleges, and universities that provide excellent education and that is why it is much easier to find Thai employees. Likewise, Thailand’s healthcare system meets international standards thanks to its cutting-edge technology, sophisticated facilities, and highly qualified medical personnel, which make it the ideal location to learn how to start a company in Thailand

How to Start a Company in Thailand?

If someone is thinking about registering a company, they should know what the registration fees are. For every million baht invested, private companies must pay THB 50 in fees; public companies, on the other hand, must pay THB 1000 for each million baht of capital. Private companies need at least seven shareholders, while public companies need at least THB 15. While private companies are subject to the Civil and Commercial Code, public companies are regulated by the Public Companies Act.

The procedures for foreigners of how to start a company in Thailand are outlined in particular regulations. Certain industries mandate that a company be owned by Thais to the tune of at least 51%, even though some businesses can be registered under the names of non-Thai nationals. At least half of the directors in a company that goes public should be Thai. The requirement that the majority of government submission forms be filled out in Thailand presents a significant obstacle for many foreigners establishing a business in Thailand. 

What Is The Company Registration Process In Thailand?

Registering a company in Thailand can take some time – expect it to take around seven days for a private company and up to 30 days for a public company. The first step is to select and reserve a company name, which is then valid for 30 days. You’ll then need to prepare and submit important documents such as:

1. Articles of Association
2. Memorandum of Association
3. Application form and list of shareholders
4. New director form signed by each director
5. Declaration of Business Operation form
6. Company name reservation
7. Details of the offices and branches of your business

Legal Obligations And Responsibilities

It is essential that you promptly fulfil legal obligations after registering your business in Thailand. Notify the tax authorities within 60 days and obtain a tax ID card. Companies with high revenue may have to register for VAT. Duties related to accounting and financial reporting are outlined on the Board of Investment website. It is therefore required for employers to adhere to strict labour regulations. Although, if you employ more than ten people, make and post workplace rules; labour officers may legally inspect them.

Where can I find help to start my business in Thailand?

Here are some resources on how to start a company in Thailand:

• Thai Board of Investment (BOI): Registering with the BOI can provide you with valuable advice and financial incentives for your business.
• Institute for Small and Medium Enterprise Development (ISMED): ISMED offers a variety of support services to help small and medium-sized businesses succeed in Thailand.
• Chamber of Commerce in your home country: Many chambers of commerce have connections with businesses in Thailand. They can help you connect with other entrepreneurs and get advice on how to start a company in Thailand.
• Startup Thailand: This organisation provides resources and support specifically for startups in Thailand.
• Local networking events: Attending meetups and events on platforms like Meetup and Eventbrite is a great way to connect with other entrepreneurs and potential customers in Thailand.

Future Considerations For Establishing A Business In Thailand

How to start a company in Thailand? This presents both challenges and exciting opportunities. Entrepreneurs must read through regulations outlined in resources like the World Bank’s ‘Doing Business’ report, understand registration fees and ownership structures, and comply with legal obligations like tax registrations and labour regulations.

Thailand’s strategic location, growing economy, and business-friendly environment make it an attractive destination for startups. Seeking guidance from the Thai Board of Investment and industry-specific organisations, along with connecting with the Chamber of Commerce and attending local networking events, fosters a supportive community that can propel business growth.  

Frequently Asked Questions