Interest in Thailand has been increasing steadily over the past few years with news sources constantly reporting on companies shifting their operations to Thailand. Given global developments, Thailand company formation is now frequently discussed. The country’s infrastructure and workforce continues to develop at a rapid pace, moving Thailand up the value chain. With strong ties to neighbouring countries in SouthEast Asia, Thailand is an ideal destination for businesses looking to conduct international operations.
The requirements surrounding Thailand company formation are simple and easy to understand. A minimum of three shareholders are required, who may either be a person or another company. While there are no nationality or residency requirements for shareholders of a private limited company, some industries such as those related to national safety / security, require a company’s shareholding structure to be at least 51% Thai owned.
At least one director is required for company formation purposes – this individual must be a natural person with no restrictions on residency. In respect of a company secretary, the appointment of an individual for this position is optional. Lastly, Thailand as the amount of a company share must not be less than THB5, the minimum registered capital amount required to incorporate a private limited company is THB15. Public limited companies and partnerships do not have minimum capital requirements
While Thailand does not have annual corporate maintenance requirements, Thailand registered companies must adhere to monthly and yearly accounting obligations. These obligations range from filing tax VAT and WHT documents to bookkeeping and annual audits.
For private companies, the formation process typically takes around 7 days and up to 30 days for a public company. However, this process may be extended depending on whether company formation requirements have been met – for difficult cases, it is not uncommon for the process to take 6 months!
Yes. One of the prerequisites for registering a company in Thailand is that a local registered corporate office address in a commercial building has been obtained.
While a virtual office may also be used, it is not ideal as companies registered under a virtual office will not be allowed to register for VAT.
Once the company formation process has been completed, a Thailand registered company is eligible to apply for a corporate savings, checking and/or foreign currency account. However, individuals who wish to apply for a company debit card and / or credit card must fulfill the requirement of having their Thailand registered company operate for at least 3 years.
While the Thailand company formation process is not as strict as many other countries, there are still factors to watch out for. While reviewing the company formation application, Thailand government officials may scrutinize: