How to Open a company in Thailand Complete Guide?

• Open a company in Thailand as opportunities abound in this vibrant Southeast Asian market. To localize or conduct operations in Thailand becomes an ideal strategic decision for local and foreign entrepreneurs who are keen on easy procedures and good business policies. The process starts with reservation of the company name and preparation of key documents such as Memorandum of Association and Articles of Association, which one submits to Department of Business Development (DBD) for registration of a company in Thailand. 

• Ranked 21st globally for ease of doing business by the World Bank, Thailand remains an attractive destination for foreign direct investment. Cumulative FDI has already exceeded THB 1.5 trillion, or about US$48 billion, as of 2022. In 2023, more than 60,000 new businesses were registered, reflecting the country's commitment to fostering a conducive entrepreneurial environment through tax incentives and streamlined registration processes. Tetra Consultants will guide you through every step of the process, ensuring full compliance with local regulations while helping you successfully register company in Thailand. 

Advantages to open a company in Thailand 

Improved credibility and legitimacy 

• Establishing a registered company in Thailand improves its credibility and legitimacy before the eyes of customers, partners, and investors. Registration would signify compliance with the Thai laws and regulations that, therefore, instills confidence among stakeholders. Such an image might make way for more acquisition of customers, stronger partnerships, and an investor base, ultimately adding to the long-term success of the business. 

Limited liability protection 

• One of the major benefits from registering a private limited company is the protection that it will give to the shareholders. Where there are financial problems and legal disputes, the shareholding personal assets are always protected from the company's liabilities and debts. This would mean that personal savings and properties and other investments do not get touched, creating a very important protection in case of business owners running into financial ruin. 

Access to wide business opportunities 

• A registered company has access to a myriad of business opportunities that an unregistered entity may not be privy to. Such opportunities include government contracts, tenders, and special economic zones. This access can greatly expand the reach, customer base, and revenue potential of a company, thus enabling businesses to tap into lucrative projects in various sectors. 

Facilitated access to finance 

• Registration leads financial institutions to give out loans and credit facilities because registered companies are perceived as stable and well-structured businesses. This means there is reduced risk for the lender. Access to funding, in this case, forms an essential source of driving business growth, investing in infrastructure, expansion projects, and new ventures. 

Tax benefits and incentives 

• Registered companies in Thailand may be eligible for many tax incentives and exemptions the government gives. These incentives include lower corporate income tax rates, tax holidays, and exemptions from import duties on specific products. This can reduce the tax burden of businesses, which would increase their profitability and retained earnings. 

Legal compliance 

• Company registration is a legal provision to comply with the provisions of the law governing foreign businesses in Thailand. Non-compliance with all the requirements will lead to charges and deportation. By respecting all the legal requirements involved in registration, businesses tend to operate smoothly without getting any form of disruption or harassment. 

Protection of intellectual property 

• A registered company is in a better position to protect its rights of intellectual property in Thailand. The law is more effective in ensuring that trademarks, patents, and copyrights of registered entities are protected. This protection is necessary to preserve innovation and prevent competitors' acts of infringement. Additionally, Tetra Consultants provide international trademark registration services to globally protecting our client’s brand name. 

Requirements to open a company in Thailand 

The requirements majorly depend on the business structure chosen. Thus, for a Private limited company in Thailand requirements are as follows: 

• At least 1 director without nationality requirements. 

• At least 3 shareholders with foreign shareholders can hold up to 49% of the company shares only. To comply with such requirements, we provide nominee director and shareholder services requirements. 

• The company must comply with BOI promotion. 

• If the company 51% shares are hold by American citizens and 50% of directors are held by American citizens, then they can opt to set up their company under the Treaty of Amity. 

• A minimum of three promoters must be appointed to register the company. 

• There is no specific minimum registered capital requirement. 

• At least 25% of the total share value must be paid up at the time of registration. 

• If foreign ownership exceeds 49%, a minimum registered capital of 2 million THB is required for each foreign employee to obtain work permits. 

• A physical address in Thailand must be provided for the company's registered office. 

Conclusion 

• We at Tetra Consultants ensure a smooth and hassle-free process to open a company in Thailand, thereby giving you more time to focus on the business at hand. We guide you from selecting the most appropriate business structure for your organization, to preparing crucial documents and registration with various authorities as well as opening a corporate bank account for you.  

• With deep knowledge of Thai laws and years of experience, we ensure that we can avoid any risks and prevent challenges. Engage with Tetra Consultants to build your business with confidence in Thailand and exploit opportunities within one of the liveliest markets in Southeast Asia. 

• Contact us to know more about how to open a company in Thailand and our team will revert back in 24 hours.