Company Setup in Thailand
A particularly popular tourist destination in South East Asia, Thailand is known for its tropical beaches, ancient ruins, royal palaces, and ornate figurines of the Gautam Buddha. In major cities like Bangkok, ultramodern buildings rise next to the lush landscape and quiet canal side communities. But that’s not all.
Thailand is also attracting foreign investors in droves. If you’re looking for help with setting up a company in this tropical paradise, you are in the right place. Read on to find out the reasons you should setup your company in Thailand, what type of company you can start, and how to setup yours.
Why setup a company in Thailand?
Foreigners who intend to set up shop in Thailand find it convenient to do so for the following reasons.
- An open economy – Thai society, and in particular the business community, is very welcoming to foreign investment, making business in Thailand a happy prospect.
- A strong manufacturing sector – Thailand has a large and very active manufacturing sector that makes it a regional leader in trade and commerce.
- Pro-active government policies – The Thai government is a forward-thinking body actively encouraging socio-economic advancement.
- A large and efficient workforce – Literacy rates are 94% for men and 90% for women, making it favourable for foreign investors to find an adaptive and smart workforce.
Different types of company you can setup
As with everyone who wants to commence a company setup in Thailand, you need to decide what type of company to start. The reason is there are various kinds of companies. Your company can be incorporated under different legal entities available for foreign nationals. Local specialists are available to help you. So, seek their guidance, especially on the legal requirements and specificities.
Foreign Investors can establish a business or company under any of the following legal entities:
- Limited company- A minimum of three shareholders are required to form it
- Partnership – established by at least two businessmen
- Joint Venture – created by a group of people
- Private or public company setup.
The Civil and Commercial Code regulates the registration and setup of private companies in Thailand, while the rules of the Public Company Act are invoked when forming partnerships. The local laws impose various limitations on foreign investors. For instance, foreigners setting up a company or a business are not supposed to have full ownership of the company, because they can only control 49% of the total shares in the business.
How to setup your Thai company?
Once you decide which kind of company you’d like to start, you can now go ahead with the registration. Follow the step by step Thai company setup guide below:
- Set aside the registration capital as required under the law: For a Thai company that wants to employ foreign workers, they must register capital of at least 2 million Thai baht per foreign worker.
- Find an office- Look for a premise where your business will operate from in Thailand. To ease with documentation, find a place that a company occupied previously.
- Hire Thai employees – Thai law requires foreign companies to have a ratio of four to one when hiring both local and foreign workers. This rule means that for every foreigner worker, four must be native Thai workers.
- Applying for a visa and work permit – After the final setup of your company, you need to apply for a Non-B visa and work permit to be able to work legally in Thailand. There are two types of visa you can use a foreigner:
Since the ancient kingdom of Thailand has never been the subject of foreign rule, it is a nation with a strong sense of identity. With an open economy and government, Thailand attracts visitors from all over the world, who come to work and explore this tropical paradise. Go ahead and setup a company in Thailand; you will have no regrets!
