Owing to its ease of administration and tax benefits for business income, the private limited company is the most widely adopted and desired type of multinational firm formation in Thailand.
These guidelines for registering a private limited company in Thailand must be followed by foreign shareholding businesses. The cost, professional fees, paperwork needed, and procedure for registering a Thai corporation will be covered step-by-step in this guide.
Requirements for Private LLC registration
- Articles of Incorporation and Memorandum
With the relevant data and documentation acquired from shareholders, an expert will draught the MoA. A limited corporation must have a minimum of three shareholders to be incorporated in Thailand.
Before preparing a Memorandum of Agreement as a framework and starting a company in Thailand, a contract must be made between the participants. Contract in writing is required for the national partner’s obligations, monetary arrangement, and limitations.
The document must include stockholders’ complete information, including their current and permanent addresses, written. Before registering your company as an adviser, enter the relevant information into the MoA accurately and double-check.
Before the aim, the first MoA must include a verified name. Allow the stakeholders to determine the company’s goals before having the attorney put them on paper.
The MoA must include the legal address, contact information, and email address. To establish a private business in Thailand, the expert must verify all of the information.
- Registration request
If the Legislative Meeting has already been called, the registration request must be submitted on the exact day as the Certificate of Incorporation at the Ministry of Trade. 3 months after the day of the legislative conference is the deadline for submitting the application form.
- Authorization of names
Since a company’s name serves as its identity, it must be impactful. In Thailand, three names are typically suggested. The Thai corporate name is completed with a “limited” term. A licensed name is only good for 30 days.
- Payroll taxes and VAT
Any corporation must submit a request for a Business Income Tax Number within 2 months after establishment.
If a corporation turns over 1.8 million dollars, it must file for corporate income tax or VAT within thirty days of the milestone being reached.
- Bank statement
To create a company account, you need documentation for an organization and a memorandum of agreement (MoA) gathering.
The ideal bank for international shareholding corporations to create an account are the Public Sector Bank of Thailand.
- Fee for registration
The state charges 7,000 Baht to establish a limited corporation with a paid-up capital of one million. Additionally, if a native worker is recruited and the firm’s majority of stock is held by locals, Baht 12,000 will be levied for the capital of Baht 2,000,000. Expert fees range from 30000 to 100000 Baht, covering income tax and VAT license.
- Community security
Within one month of employing the first staff, a company must file with Special Security.
It is stated that failure to file an entry within one month in Thailand results in a 6-month jail term and a Baht 20,000 fine. The legal minimum wage is Bath 1650, and the maximum allowed wage is Bath 15000. The current pension support is 5%.
Documents required for registration
You must submit the following paperwork to incorporate your business in the country:
- Authorized brand name;
- Details of corporate activities;
- Identification details of directors and stockholders;
- Proof of business address;
- Statement of corporate bank account;
- Certificate of incorporation;
- Required permits; and
- Proof of paid registration fee.
Tasks after registration
Every month, limited companies in Thailand are required to create financial statements and present them to the Ministry of Business Administration. The finances must be audited and closed within four months after the closing date by at least one accountant.
A monetary fine of Baht 50K shall be levied on any business that fails to comply with the regulations.
Administrators of the firm are required to arrange for the annual conference and give investors a 14-day notice time to appear. As required by Thai law, a fine of 10,000 Baht will be assessed if a meeting is not called off promptly.
To prevent a 20K Baht fine, share certificates must be issued to stockholders and the books must be kept up to date.
