The hospitable, friendly people and a high standard of living in Thailand have long attracted visitors from all over the world. Paired with the country’s stunning natural beauty and amazing weather, it’s no surprise that Thailand is also a top choice for people looking to settle, work, retire or even start their own business overseas. So, it’s no surprise that a growing number of entrepreneurs are looking to take advantage of the growing economic market in the land of smiles. Here are some things to consider if you’re thinking about starting a business in Thailand and a short guide to get you started.
Business Structures in Thailand:
Before you register your new business in Thailand, it’s important that you take the time to consider which company structure is going to be the best option for your needs. There are several different options to consider, these are sole trader, unregistered, registered or limited partnerships, public or limited companies, and joint ventures. A sole trader structure is best for those looking to work alone, whilst if you want to start a private or public company, be aware that the registration fees are based on the initial investment. There are also minimum director and shareholder numbers required. You can get help from this Thai startups community who’ll answer any questions that you have about getting started.
The Company Registration Process:
Bear in mind that registering a company in Thailand can take some time; expect around seven days for a private company, and up to 30 days for a public company. First of all, you will need to select and reserve a company name, which will then be valid for 30 days. Then you will need to prepare and submit several documents, such as your Articles of Association, Declaration of Business Operation form, list of shareholders, new director form signed by each director, and your Memorandum of Association. You’ll also need to provide details of your business’ offices and branches and their locations. Additionally, before you can successfully register your business you will need to deposit at least 25% of the initial investment capital to a business bank account. You’ll also need a chop (stamp) for your company, which will act as a signature to certify any company documents.
Legal Obligations:
Finally, once your business is registered, you will need to notify the tax authorities. You have a 60-day period in which you will need to notify the revenue department, who will then issue a tax ID card for your business. And, if you expect a high turnover, you’ll also need to register for VAT. If you plan to employ staff, bear in mind that Thailand has stringent labor restrictions. You will need to register with the Ministry of Labour if you plan to hire employees. Businesses that hire over ten people will also need to create and display workplace rules and regulations. You should also adhere to rules regarding the ratio of Thai people to foreigners that you must employ. In general, this means that you will need to employ four Thai people to each foreign worker, but this can vary.
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