This is a guide to help you set up a Thai company step-by-step. Foreign investors usually choose a private limited company to establish their presence in Thailand. However, before establishing a local entity in Thailand, you must follow several steps and fulfill certain requirements. VNBG can make the process easier for you. In this guide, we will take you through the process of registering a Thai company, giving you an overview of the factors you need to consider to get your company registered the way you prefer.
Step 1: Choose A Company Name
This initial step involves reserving a company name with the Department of Business Development (DBD). The name you select must adhere to specific guidelines, such as avoiding similarities with existing registered entities and complying with naming restrictions. The chosen name will be registered in both Thai and English. To maximize your chances of approval, it’s advisable to provide three preferred names. Keep in mind that your business’s trading name can differ from the registered company name, provided you include a distinct descriptive term. Once the name is approved, it remains valid for 30 days, during which you must proceed to Step 2, as it cannot be extended.
Step 2: Finalize Your Paperwork
This phase involves gathering essential information about your company, preparing the necessary documentation, obtaining required signatures, and then submitting these documents to the DBD. To compile the statutory meeting for the adoption of the Memorandum of Association (MOA) and draft the registration application, you’ll need to furnish the following particulars:
- The proposed company name
- The province within the Kingdom where the company’s registered office will be located
- The company’s objectives
- The suggested share capital
- Names, addresses, occupations, and signatures of the promoters (at least two individuals, not corporate entities)
- Details about the value and quantity of shares subscribed by each promoter, specifying whether they are paid or not, and whether they are ordinary or preference shares
- The name and address of the registered director or directors (if multiple, specify whether directors sign for the company individually or jointly)
- The address of the registered office and any branch offices
- Personal information of the ultimate shareholders or company registration particulars in the case of a corporate shareholder
Step 3: Register The Company
Depends on the specifics of your business and the time it takes to complete the registration. Once completed, you will receive the registration documents along with a company/tax ID. For a private limited company, the registration fee is THB 5,500 per THB 1 million of registered capital.
Step 4: Set Up Your Business Banking
Involves opening a company bank account. You need to inform us about your bank and branch, the type of account you need, and who will sign.
Step 5: Register For Corporate Income Tax And Vat
Requires you to register for corporate income tax and VAT within 60 days of incorporation or beginning business activities. You will need to obtain a corporate tax ID card from the Revenue Department. To register for VAT, you will need to employ foreigners and surpass a yearly revenue of 1.8M THB. We will need documents from the owner of your business premises and a copy of the lease agreement to register for VAT.
Step 6: Register For Social Security
This pertains to the registration of employees with the Social Security Fund. Both Thai and foreign employees are mandated to be registered with the Social Security Fund (SSF). We will need copies of their identification cards, workplace photographs, salary details, and position information. This registration is a prerequisite for visa extension (Step 9). Any company employing one or more individuals must complete this registration at the Social Security Office within 30 days of hiring their first employee. Foreign employees working legally in Thailand are also obliged to register and are entitled to comparable benefits as Thai employees. Failure to register staff within the stipulated timeframe can result in substantial penalties. To gain a deeper understanding of the contribution rates, please consult our Social Security guide.
Step 7: Visa Application
We offer assistance in obtaining the necessary visas for foreign directors and staff, ensuring their legal stay and work in Thailand. After the company is incorporated and tax-registered, it can serve as the sponsor for a Non-Immigrant ‘B’ visa.
Step 8: Involves A Work Permit Application
If a work permit is necessary, we can help you with the preparation of the WP3 letter, which is essential for obtaining the appropriate visa at a Royal Thai embassy or consulate abroad. This must be done before your entry into Thailand to initiate the work permit application process.
We will require your photographs, a medical certificate from a Thai physician, copies of your educational certificates, as well as information regarding your salary and position.
Step 9: Visa Extension.
Initially, your visa granted a 90-day stay, but upon the submission of your work permit application, an extension becomes possible. This extension process necessitates several documents from your company, which must include comprehensive information regarding the VAT and SSF registration of your entire workforce.
In conclusion, the process of registering a Thai Limited Company may seem intricate, but with careful planning and the right guidance, it becomes an achievable goal for aspiring entrepreneurs and investors. By navigating the legal requirements, understanding the nuances of company structures, and following the steps outlined in this comprehensive guide, you can establish your presence in Thailand’s thriving business landscape. Remember, compliance with Thai regulations and thorough preparation are key to a successful and prosperous journey in the Land of Smiles. As you embark on this endeavor, know that Thailand offers a wealth of opportunities, and with the right foundation, your business can thrive in this dynamic and vibrant market. So, take the first step, embark on this exciting venture, and set your sights on a future of growth and success in Thailand.
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