Q: What’s the cost to setup a company in Thailand? --> Read the answer
Q: What’s the process for a Company Setup in Thailand?
Siam Trade Development process your Company Setup in Thailand to allow you to develop your business locally in full safety and compliant with law.
Foreign Companies and investors are often required to open a local unit in Thailand to run their business in the sectors of Healthcare, Dietary Supplements, Medical Devices, Cosmetics and Multi Level Marketing. Infact, foreign companies are not allowed to hold import license or to register products in Thai FDA.
Setup Company in Thailand may be complicated if you do it by yourself: language barriers, physical distance and, last but not least, the “new normal”, with limited travel capacity, may interfere with your nromal activity.
Siam Trade Development manage your full project for you, as one-stop-service company, from the company setup in Thailand to FDA registration, Licenses, BOI Promotions, Accounting and Auditing, etc.
We manage your compliance, you only care your sales!
The most common Company Setup in Thailand for foreign investors in a Limited Company (Co., Ltd.). A Thai Limited Company is a juristic entity that must be promoted by at least three individuals (they will be two soon by a new announced law), with a division in shares that must be owned 51% by thai citizens. Promoters must subscribe a capital (minimum 1 million THB) and liability is limited to capital. One or more directors can manage the normal administration.
Foreign investors can set up a Branch Office (“Branch”) here. A Local Branch in Thailand is not a separate legal entity but effectively part of the main foreign company. However, it is a separate tax entity: branch forms a permanent unit with the “mother” company. It needs to be registered with Thailand’s Ministry of Commerce.
Branch offices can earn their income. Branch liabilities will not be limited to Thailand, since the processes are allowed to extend to the overseas head office.
Foreign Companies entertaining business in Thailand may not wish to form an autonomous Limited Company. They might instead wish to operate their business with the help of an Asian representative branch office in Thailand.
A Representative Office don’t pay tax in Thailand. If the business is in import and export, the Representative Office could monitor quality, quantity and handling of the goods, and also suggest alternative sourcing, etc., to the overseas head office.
The incorporation of a Limited Company is the most common way for one or more foreign partners, as societies of people are denied to non-Thais.
There are several types of companies listed on the website of the Department of Business Development (DBD). The same site gives the chance to register your company online. Also the website of the Board of Investment (BOI) provides useful information for companies that want to invest in Thailand mostly foreign capital.
Normally after a few weeks of DIY attempts the candidate entrepreneurs are turning to a consultant, due to enervating bureacratic bottlenecks.
Open a company in the right way, setting it correctly, it is the first success factor for your future business. Depending on your commitment, your marital status, your asset composition and origin of your capital, there might be different solutions. Have an oversized or having to pay an important social capital can be a weight that you’ll take back for months, that will generate costs and loss of time. Siam Trade Development then design a company tailored to you, and we do it with you, making you share all the pros and cons of various options.
We don’t tell you how to proceed with your Company Incorporation Thailand: this is what you can see from the websites listed above. We advise you how to open them, how to organize it and how to manage it in the start-up phase, the most delicate. In this phase you will also need licenses, promotions, working permits, product registrations (Thai FDA, DLD, TISI, etc): all such services are included in our projects.
Costwise, Setup company in Thailand is not expensive and timeline is around 3/7 days.
Government fees:
1. Memorandum of Association Registration, for each 100.000 THB of Registered Capital: 50 THB (minimum 500 THB)
2. Stamp Duty for MoA: 200 THB
3. Stamp Duty for Company Regulation (if any): 200 THB
4. Company Registration Fee for each 100.000 THB of Registered Capital: 500 THB
5. Registration Certificate: 100 THB
Professional Fee:
From 50.000 THB (according to project size and required services)
Lets’ see the different steps:
Step 1: Reservation of company name, taking two or three days and free of charge. After approval you have 30 days to proceed to registration
Step 2: Memorandum of Association between the promoters (3 individuals, DBD don’t allow companies for promotion)
Step 3: Company Setup in DBD and VAT registration in Revenue Department
In order to register the Limited Company, promoters must provide a house registration (tabian baan); if they are not owner of the building DBD requires a rental contract with authorization to commercial operations from the landlord.
Please remember that in normal cases 51% of shares must be under Thai nationals. Law allows a 100% foreigned owned company only in special cases (like, for example, for companies exporting 100% of their production or promoted by BOI).
