Setting up an international company in Thailand
To tell you the truth, there are tons of reasons that support your decision of setting up an international company in Thailand. Also, another good news is, if you manage to start a business in Thailand, after a few years, the government can permit you to be a citizen of the country and work there in a full-fledged manner.
The first and the most important step of commencing a business is getting through with the formalities circumscribing its registration. However, you should know that in Thailand, you cannot have 100% ownership of your business as a foreign entrepreneur, unless it is BOI registered or you hail from the US. The ownership program suggests that foreigners can own only up to 49% of the business while the rest of the 51% of shares will be either allotted to one or more local partners. But, this limit of 49% can be exceeded if the Thai trade authorities grant you a foreign business license. Bear in mind that the foreign business license is only rendered to those businesses that are solitary to the country and won’t, in any way, disturb the mainstream businesses of the nation.
In Thailand, your company can be segregated under any one of the several categories that they have for businesses. Popularly, it is the "private limited" label that draws most of the businesses and smoothly complies with their requirements. What distinguishes these private limited companies from the rest is that they should be looked after by a minimum of three promoters and the directors can have as much liability as they want whereas, the shareholders will be offered minimum liability. As far as the promoters responsible for your international company are concerned, they can be from Thailand itself or foreigners but should, under all circumstances, be stockholders in the organization.
The stages of registration will gain momentum once the promoters delineate names for your company and submit them to the Department of business development (DBD). Nonetheless, there should be at least three names presented to the authorities and neither of them should match or even closely resemble those names that already exist in the market. If these norms are sincerely abided by and the business doesn’t violate any of the prescribed ministry regulations, the DBD will choose one of these names and continue with the subsequent steps.
Within three months of this, the promoters should file for a Memorandum of Association with the Commercial Registration of the company to slide it into the legal trading books of the country. The Memorandum essentially has a very vital role to play because it is the only document that will contain the name of the company, the number of shareholders and their stakes in the company, names of the promoters, and other such crucial details. If at all your company hires foreign workers, a minimum registered capital requirement must be fulfilled and the business will be ascribed with employment eligibility too.
After the steps of company registration in Thailand are completed, you can apply for the trade license and begin with the rudiments of the business. As a new company, you will have to monitor the transactions and make sure they correspond with the standards specified by the Revenue Code, Civil and Commercial Code, and the Accounts Act of Thailand.
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