Company registration
The formation of a limited company is the first step toward a formal business. The registration is important since it serves as the cornerstone of the firm. Because the shareholders’ share, the shareholder’s contract, the authority, the company’s signature, the grant of authority, and the purpose of a company all serve as important foundations for company registration, a good structure is required to help reduce the problems that may arise in the conduct of a business.
Things you should know before registering a Thai limited company.
Before we guide you through the process of forming a Thai limited company, there are a few things you should know and prepare for.
Thai regulation requires a Thai limited company to have at least two shareholders in order to register as a private limited business. There are no restrictions on the maximum number of stockholders.
In a Thai majority-owned limited business, Thai nationals must own at least 51% of the company’s shares.
A corporation with Thai majority ownership must have a minimum paid-up capital of THB 2 million for each international employee.
If the company wishes to hire foreign workers, it must also employ a certain number of Thai workers. For every non-Thai employee, there must be four Thai employees.
STEPS on HOW TO FORM A THAI LIMITED COMPANY
Here’s a step-by-step guide to help you oversee the process and get your company started and functioning correctly.
1. Company name reservation
The first step is to reserve your company’s name with the Department of Business Development (DBD). The chosen name must be unique and follow to DBD requirements. It is recommended to have a few backup names in case your top choice is already taken. Once accepted, the name will be reserved for 30 days, during which time you must finish the registration process.
2. Prepare documentation.
Creating the essential documents entails writing the Memorandum of Association (MOA) and Articles of Association. The MOA comprises important information such as the company’s name, corporate objectives, and registered capital. All stockholders must sign these papers. To minimize delays or complications during the registration process, ensure that the information is accurate and in accordance with Thai legislation.
3. Convene a Statutory Meeting.
Before registering your company, you must hold a statutory meeting with all shareholders. This meeting is required to adopt the Articles of Association, nominate directors and auditors, and establish the company’s objectives. The statutory meeting guarantees that the shareholders agree on all of the company’s fundamental aspects, laying the groundwork for the business’s operations.
4. Company registration
To legally register the company with the DBD, submit all of the essential documentation. This contains the signed Memorandum of Association (MOA), Articles of Association, and any other applicable forms. The firm’s directors must file an application to establish the company within three months of the statutory meeting and pay the registration fee.
5. Open a corporate bank account.
Choose a local bank and open a corporate account for managing commercial transactions. You will be required to provide the company’s registration certificate, the director’s identification, and other essential documents. A corporate bank account is essential for managing your company’s funds, receiving payments, and keeping financial records.
6. Tax and VAT Registration
Once your company is incorporated, you must receive a Tax Identification Number (TIN) and, if necessary, register for Value Added Tax (VAT) with the Revenue Department. This process include submitting the required forms and supporting documentation. To avoid penalties and comply with Thai tax rules, registration should be completed on time.
7. Social Fund Registration
Register your company with the Social Security Office to ensure that your employees are protected by Thailand’s social security system. This includes presenting required documentation and making monthly donations to the social fund. Ensuring compliance with social security legislation is critical for providing your employees with benefits like healthcare, maternity leave, and unemployment insurance.
8. Obtain a Visa and Work Permit.
If the company’s directors, including the sole director with signing authority, or any hired employees are foreigners, they must get work permits. To sponsor a non-immigrant B visa and work permit for a foreign director or employee, your company must meet the Ministry of Labour and Immigration Bureau’s requirements, regardless of shareholding structure.
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