The Basic Steps Involved in Registering a Business in Thailand
Below are the basic steps of registration.
Step 1 – Register the Business Name
You must choose promoters when registering the business name. Fifteen promoters must be chosen by public companies while three promoters must be selected by private businesses. Each promoter must be at least 21 years old. All the promoters must be able to represent the company legally. Usually, each promoter holds equal shares. After registration, the promoter may transfer his or her shares to others.
Step 2 – Submit and File a Memorandum of Association
After it registers with the Ministry of Commerce, a company can register a memorandum of association for its business. When this happens, all the shares are required to be paid. To engage in foreign business dealings, the company must seek cabinet approval.
The name of the company, names of the promoters, company’s location, and business goals should be listed on the memorandum of association. A registration fee is required of 5 baht for every 1,000 baht of capital.
Step 3 – Hold the Statutory Meeting
A company must submit its article of corporations and by-laws after a statutory meeting is held. At the meeting, members must elect a board of directors and auditor for the business.
Step 4 – Officially Register the Company in Thailand
The company registration must begin the same day the memorandum of association is submitted and registered through the Ministry of Commerce. This occurs after the statutory meeting is held. The company has 90 days from the date of the statutory meeting to submit the registration application.
Step 5 – Registers the Income Tax and Value-added Tax for the Company
After company registration, businesses must file VAT certificates or tax ID cards. Other documentation is also filed through the MOC and submitted to the registrar at the Department of Business Development. This paperwork must also be submitted to the Office of the Revenue Department in the capital of Bangkok.
While registration may be detailed, you will find that Thailand is a friendly haven for business investors. That is why it pays—literally—to understand and follow the steps for business registration. You just need to obtain corporate legal assistance from a firm that understands the dynamics of international law and the legal process in Thailand. Make sure you have the proper legal and financial help when registering your company.
If you need the assistance of a corporate lawyer in Thailand, please contact us.