Starting A Business In Thailand

Starting a business in Thailand presents a unique opportunity for foreigners. This guide aims to provide you with comprehensive insights into how to establish your venture in one of Southeast Asia’s most dynamic markets. From understanding legal requirements to navigating cultural nuances, this guide covers all you need to know about starting a business in Thailand.

Select The Type Of Company You Want To Establish

Choose the type of company you want to set up based on your goals, as per the Thai law. If you need advice, we’d suggest you consult a local lawyer to help you understand the challenges that you may face while starting out. Apart from that, you should understand the different types of business categories that are available in Thailand, when starting a business in Thailand.

The available categories include:

• Limited Company:  A limited company is the perfect choice for international investors. As a matter of fact, shareholders can only own a specific number of unpaid shares. Therefore, you must have a minimum of at least 3 stakeholders to register the company. When you are first starting a business in Thailand, you’ll need a director, auditor, and registrar are required to draft the Memorandum of Association; while promoters handle accounting activities related to the civil and Commercial Code and Revenue Code in Thailand.
  
• Board of Investment Promotions: Global entrepreneurs wanting 100% ownership can join the Thailand Board of Investment. This Board supports international companies, helps with visas and work permits, and signs off on corporate taxes. However, the Board follows strict guidelines in promoting international companies; and therefore applying for a BOI promotion can be time-consuming. 
  
• Sole Proprietorship: This form is owned and recorded in the name of a single person, acting as the sole operator. However, implementing this form may be challenging for a foreigner’s company if it doesn’t qualify.

Partnerships & Unregistered Ordinary Partnership:

1. Ordinary Partnership (Licensed): Registered with the appropriate authority, this partnership has legal standing, rights, obligations, and liabilities distinct from its partners.

2. Limited Partnership: There are two types of partners – unlimited liability partners and limited liability partners. Unlimited liability partners bear absolute responsibility, while limited liability partners’ responsibility is limited to the sum of their contributions.

Starting a Business in Thailand: Initial Steps

Once you’ve obtained your work visa, the crucial next step in starting a business in Thailand is to register your company. This comprehensive guide outlines the process, beginning with the crucial initial step of choosing a suitable name for your business.

This registration secures your company name and further legitimizes your business operations.The registration process is relatively uniform for all businesses looking to establish themselves in Thailand. The key steps include:

1. Company Name Search: Begin by conducting a name search for your company. This can be done online by creating an account for the purpose.

2. Registration of the Company Name: Once you’ve finalised a suitable name for your company, proceed with the formal registration of the chosen name.

3. Preparation and Submission of Memorandum of Association: Draft and submit the Memorandum of Association, a document outlining the company’s objectives, structure, and rules.

4. Preparation and Submission of Articles of Association: Similar to the Memorandum of Association, the Articles of Association detail the internal regulations governing the company. Prepare and submit this document as part of the registration process.

5. Fixing a Statutory Meeting: Following the submission of necessary documents, schedule a statutory meeting, (which is a formal gathering of the company’s stakeholders to discuss and finalise important matters.)

6. Submission of Necessary Documents for Company Registration: Submit all required documents for the official registration of your company. This step ensures that your business is legally recognised.

7. Registering for VAT or Tax: Depending on your business activities, you may need to register for Value Added Tax (VAT) or other applicable taxes. Ensure compliance with tax regulations by completing this crucial step.

A Premier Destination for Entrepreneurial Excellence

Thailand is a great choice for people starting a business in Thailand; as it is known for its strategic location, the country offers many opportunities for businesses that want to go global. Thailand is not just a popular tourist spot; it’s also an excellent place for new businesses to grow. The Thai government supports this business-friendly environment by providing benefits and incentives to local and foreign entrepreneurs, making Thailand an attractive destination for business ventures.

To assist businesses, they provide tax breaks and streamline administrative procedures. This commitment, together with the country’s flexible culture, highly skilled workforce, and state-of-the-art infrastructure, makes it ideal for both start-ups and well-established businesses. Thailand presents an exciting chance for foreign investors as well as entrepreneurs to capitalise on the country’s growth potential. 

Frequently Asked Questions