Limited Company Formation and Registration in Thailand

Overview :

A limited company is a legal entity which can do business, enter into contracts and own property in a similar way to an individual. The most important distinction is limited liability, which means that the shareholders can only ever lose what capital they invested. Thai limited companies thus serve as a way to protect individuals from excessive financial risk. In addition a limited company created in Thailand also can do certain things that a foreign individual can not. e.g. own land.

Limited companies are the most common way for setting up a business in Thailand, they are similar to limited companies in other developed nations. The Thai company creation process will therefore feel familiar to business persons, even if they have little or no experience of business in Thailand.

Process:

Forming a limited company in Thailand has never been more easy. Before July 1, 2008, it would take about 6 weeks. Now the process can be completed in a few days. Furthermore, only 3 shareholders are required to incorporate and register a new Thai limited company (as opposed to 7 prior to 2008). These improvements came about as the Thailand government seeks to encourage foreign business in Thailand.

The basic requirements are:

Articles of Association
Memorandum of Association
Company Address
Bank account (To pay in registered capital)
Three Shareholders

AAA offer a safe and reliable company formation process for our clients. We will ensure all the above documents are registered with the correct parties and answer your questions.

Work Permit?

Should you wish to acquire a work permit, there are some minimum requirements that the limited company must meet.

Four Thai employees (and monthly social fund contributions)
Registered Capital of 2,000,000 THB

Bottom Line: Costs

To summarize, for a basic limited company that provides a work permit for one foreigner cost breakdown is as follows:

One off setup costs:

Government Taxes 0.6% of registered capital = 0.6% x 2,000,000 = 12,000 THB

Typically one quarter of the registered capital needs to be fully paid and shown in the company bank account, but this may vary dependant on your accountant and the nature of the business.