Types of Company in Thailand and the Registration Process
Before we start the registration process, we must first understand the different types of companies that can be registered in Thailand. Thai companies fall into three types: Company limited, Partnership, and Non-trading entity. Each type of company has its own registration process. Let us take a closer look at the registration process for each one. Read on to discover which one suits your needs best. Here are some important things to remember:
Whether you're looking to open a branch office or a representative office in Thailand, it's essential to understand the business environment in Thailand before you begin the registration process. You need to be sure that your business will be safe and successful, as the country is a member of several international organizations. For example, Thailand is a member of the Association of Southeast Asian Nations (ASEAN), the World Trade Organization (WTO), and the International Monetary Fund (IMF). It's a regional player and possesses many competitive bilateral free trade agreements, including with New Zealand.
A foreign company can start trading in Thailand with a temporary VAT number, allowing it to operate while the company is still establishing itself in the country. Although a temporary VAT number is valid for just a few months, it must be renewed every three years. Once it's registered, you must appoint a VAT fiscal representative. This person is jointly and severally liable for reporting VAT to the Thai authorities. In addition, they will be responsible for all communications with the Tax Authority.
Setting up a Business in Thailand is relatively simple, but the process is not without its challenges. Thailand has stringent laws regarding the creation and management of companies, and establishing a company is no different. There are a few key steps in this process that should be followed to ensure your Thai limited company is properly registered. Listed below are some of the most important steps to take when creating a company in Thailand. Once you've met these basic requirements, you can proceed to the next step.
Once you've made the decision to form a Thai company, the next step is to register it with the Ministry of Commerce. Generally, a company must register within three months of its Statutory Meeting. However, if this is not possible, the company must provide a valid reason for the delay. The registration fee is THB 5,500 per one million in registered capital. Then, within 60 days of incorporation, the company must apply for a company corporate tax ID card.
The Thai government has many laws and regulations that regulate partnerships, but you may have questions about how to get one. In Thailand, you can form an Ordinary Partnership or Limited Company, but you should first understand the differences between the two. The first two are private or closely held companies, while the third type is public. A limited partnership requires registration. In Thailand, limited partnerships are taxed like corporations. The process to register a limited partnership is a bit more complicated, but a basic understanding of the laws will allow you to create a successful business venture.
If you're a Thai citizen, incorporating a partnership is easy. If you're a foreigner, however, you'll need a Foreign Business License. Thailand allows up to 49 percent foreign ownership in a limited partnership. If your foreign investment exceeds this amount, you'll need to apply for a license. You can hire a professional service to help you get the license and register your partnership.