Fast-growing economy attracts foreigners to invest in Thailand. With the country’s good tourism and high market demands, foreign investors deemed it as a good potential to open a business in Thailand.
Business organization in Thailand may be operated in various types: the individual as the owner or by investing with other individuals as a group. Generally there are 3 types of businesses in Thailand: Thai Partnership, Thai Representative Office and Thai Limited Company. Choosing the type of business organization depends on the nature of the business, capital, or business capability.
Thai Partnership requires to have a minimum of 2 persons as an owner. They are joint partners who share unlimited liability for all the company’s obligations. Each partner must agree and gives consent to the partnership. Each partner is held jointly and liable for debts and taxes of the partnership.
This can be further classified and indicated as Limited Partnership and requires to be registered, wherein liability are limited, as oppose to whose liability are jointly and unlimited.
Thai Representative Office
This type of company needs securing a Foreign Business License. For your business to qualify under this type, it must adhere and delimit to the following purpose:
- The business is to source goods or services in Thailand for the headquarters.
- To check the product ordered by the headquarters overseas
- To give advices to the headquarters about the goods to order
- To supply the information of the headquarters’ products to the customers in Thailand
- To report the economic movement in Thailand to the headquarters
To open a Representative Office in Thailand, it would be best to seek the assistance of corporate lawyers to ensure an organized and systematic registration of your business.
Thai Limited Company
Thai Limited Company is formed with a capital divided into equal shares, the liability of the shareholders is being limited to the amount unpaid on the shares respectively held by them.
Registration of Thai Limited Company includes the following steps:
- Registering the Memorandum of association
- Registering the company limited’s establishment
To register the memorandum, the following information needs to be provided:
- company name
- location of the head office
- objective of the company
- Registered capital must be divided into each share with the same value
- Name, address, age, occupation and number of shares that persons who start up the
- Name, address, age of 2 witnesses
- In case of registering for the establishment or changing the company’s name, the persons who start up the company or company’s director shall request for verifying and reserving the company’s name to confirm that such name is not duplicated or similar to other names pervious registered. Upon reserving the name, shall request for the registration of memorandum of association within 30 days by reserving the name in person or via internet at www.dbd.go.th
- Purchase the request and form from the Department of Business Development or any of 7 business development office or provincial business development office or download from internet from www.dbd.go.th.
- Prepare the request for registration and other attachments to the registrar for consideration.
- Pay the fee according to the officer’s order
- If aiming to issue the certificate of registered transactions, shall submit the request and pay the fee to the officers.
- Receive the certificate of registration.
Registering business in Thailand could be a complicated process. The registration require documents and forms in Thai language. It would be best to hire a law firm to represent in your behalf for a successful company registration. Corporate attorneys of international law firm could take care of the legal aspects of setting up your business in Thailand.