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“Best Legal Solutions for your Business”

COMPANY REGISTRATION 

MAIN TYPES OF BUSINESS ORGANIZATIONS:

 LIMITED COMPANY

The Limited Company is the most popular form of business structures in Thailand. A limited company should be registered by at least 3 shareholders and one director.

 

According with the Foreign Business Act, some business activities are restricted for foreigners in Thailand. This means that in some cases at least the 51% of shares shall be hold by Thai investors. However, the Ministry of Commerce provides some alternatives to form a company 100% foreign ownership by meeting some requirements. 

Our legal advisor shall advice you about the suitable company structure according with your needs by maintaining the full control of your business in compliance with the local regulations.

Generally speaking, the registration of a limited company consist of the following steps:

  1. Reservation of Company name

  2. File Memorandum of Association

  3. File Company application at Ministry of Commerce

  4. File VAT/Tax application at Revenue Dept

  5. File Business License application depending of the business activity

  6. Open a bank account

We will assist you in every step to ensure that you can conduct your intended business in Thailand in accordance with Thai laws.

BOI COMPANY

The BOI (Thailand Board of Investment) is a government body aimed to encourage the foreign investment in Thailand.

 

Some specific business activities are eligible to obtain BOI promotion for companies registered in Thailand formed by 100% foreign ownership. The major advantages of setting up a BOI company  are as follows, but not limited to:

  • Limited company registered 100% foreign ownership;

  • Exemption from corporate income tax for up to 8 years;

  • Exemption of import duties on machinery and raw materials;

  • Exemption from rules restricting foreign ownership of land;

  • Exemption from work permit and visa rules; and

  • Exemption from rules restricting overseas remittances.

Our legal advisor shall advise you if your intended business activity is eligible for BOI promotion. 

US THAI- AMITY TREATY

US Thai-Amity Treaty provides significant advantages for US investors to conduct their businesses in Thailand. These are the major advantages:

  • American nationals (companies or individuals) can register a company in Thailand by 100% US ownership.

  • The company may obtain a Foreign Business License to conduct its business in Thailand and be exempted from most of the restrictions imposed by the Alien Business Law to foreign investors.


However, it should be noted that not all the activities are allowed to be conducted by US nationals under the Treaty, since the following business activities are still reserved to Thai national:

  • Communications

  • Transportation;

  • Fiduciary functions

  • Banking involving depository functions;

  • Land Ownership, Exploitation of land or

  • Other natural resources; and

  • Domestic trade in indigenous agricultural products.

Our legal advisor shall advise you if your intended business activity can be conducted under US Amity Treaty.

Foreign investors and companies who would like to set up a 100% foreign owned company in Thailand may register a Thai representative office with reference to its main office elsewhere outside Thailand.

 

However, should be taken into consideration that a representative office in Thailand cannot engage in any trading activities hence, cannot earn profit in the country. 

In the other hand, a Thai representative office shall engage only the following functions:

  • ​Reporting on business movement in Thailand

  • Providing advice related to products that are being sold to distributors or customers

  • Sourcing goods and services in Thailand

  • Inspecting and controlling the quality and quantity of goods purchased or ordered to be manufactured in Thailand

  • Introducing information regarding new products or services

REPRESENTATIVE OFFICE