Unlocking Business Success: Your Guide to Starting a Company in Thailand

Embarking on a business venture in Thailand post-pandemic offers promising prospects amidst a resurgence in consumption and robust tourism, projecting a GDP growth of 3%-3.5% in 2023. With its strategic trade location and diverse manufacturing sector, Thailand has emerged as a favored destination for business expansion or entrepreneurial endeavors.

Navigating the process of professional company registration in Thailand is crucial for a seamless start to your business journey. This comprehensive guide offers insights into the intricacies of registering a Thai company, guiding you through each step from selecting a corporate structure to fulfilling necessary documentation requirements.

Step 1: Choose and register a company name

Initiating the registration process begins with selecting a suitable company name, adhering to specific guidelines such as inclusion of the term "Thai" or "PLC" (Public Limited Company) in Thai language. Online reservation of the company name through the Department of Business Development (DBD) expedites the approval process, typically taking one to three days. Subsequently, shareholders are required to sign a Memorandum of Association (MOA), providing essential details including shareholder names, registered capital, company address, and intended scope of activities.

Step 2: Filing the MOA

The Memorandum of Association, serving as an agreement among company founders, is submitted to the DBD once finalized. This document delineates crucial aspects such as company name, business objectives, registered office province, shareholder liability limitations, share capital details, and signatures of each founder.

Step 3: Choose a company type

Selecting the appropriate company type among private limited company, public limited company, or limited partnership is pivotal. A Thai Limited Company, a prevalent legal form, mandates a minimum of three shareholders, with a Thai legal entity holding majority shares. Convening a statutory meeting is imperative to draft articles of incorporation, appoint auditors and board of directors.

Step 4: Register the company

Registering the company with the Ministry of Commerce within 90 days of the statutory meeting is paramount. This can be accomplished online or through a registered agent, necessitating provision of pertinent information including allotted shares, director details, and company address.

Step 5: Register with the Revenue Department

Upon registration, a company registration certificate and income tax number are issued. Subsequent application for a Tax ID number and VAT registration is requisite if annual turnover exceeds THB 1.8 million.

Step 6: Apply for an Alien Business License

For non-Thai citizens establishing a physical business presence, securing an Alien Business License is mandatory.

Step 7: Work permit and social fund registration

Ensuring compliance with work permit regulations and registering Thai employees in the Thai Social Fund system is integral to operations.

While navigating the complexities of starting a company in Thailand may be time-consuming, strategic planning and leveraging professional services can streamline the process. Engaging with Link’s PEO/EoR services expedites business expansion, ensuring compliance with local regulations and minimizing costs. With assistance from Link's Asia-Pacific team, embark on your business venture in Thailand efficiently and effectively.