Countless foreigners nowadays would like to start up or perhaps expand their enterprise in Thailand. Starting a business in a foreign country could be both a rewarding opportunity and a daunting task. You’ll find One Stop Service Centers that include business services that will foreigners set up a firm in Thailand. The Thai administration has made great improvement during the last few years to raise the process of business registration in Thailand. A Thai Company could be registered in just one business day soon after receiving a confirmation in the name reservation with the Thai limited firm.
Fresh businesses both huge and small can set up in Thailand easily. For a smaller new Thai business you can easily register your new Thai limited company with a minimum capitalization of 2 million baht. The Thai administration requires that at least 25 percent of the starting capitalization be paid through to the date with the meeting for corporation registration. This start up capital can be used immediately for business office rental, buying pc’s, purchasing inventory along with other business expenses. For big businesses, Thai government has their Board involving Investment (BOI) course for offering special sectors advantages for choosing Thailand as their initial location. This can comprise small software developers with just a couple people to great manufacturing operation. This incentives include levy holidays, reduce levy duties on imported machines, fast canning of work permits and visas regarding foreign staff, and as well as tax cost-free zones for importing raw materials that may be used and exported to be a finished product (for several designated sectors).
The particular ownership percentage of this Thai company depends on any type of business registration you process using the Thai government. The most common type of registration could be the Thai Limited Corporation with 2 mil baht required preliminary capitalization. A foreigner can only support to 49 percent on the shares in this sort of structure. Thus, the Thai partners must have 51 percent. The BOI corporation structure offers the option of 100 percentage ownership in particular business categories. It is strongly recommended that you call a Thai corporation incorporation lawyer to help you in the planning of your respective new business within Thailand.
If you are interested in Thai company registration and wish to own more than 50% of the shares, it is necessary to invest in a Foreign Business License. The foreign business license is not popular with foreign investors. According to the Thai authorities, approximately 80% of foreign companies that apply for this license receive it. However, it should be noted that since the introduction of the Foreign Business Act, few companies have bothered to take on an application. Why? Because it is known to be an extremely long and arduous process. However, if you find the ideal legal team, you can speed up your Thai company registration process AND possibly gain a foreign business license.
How Do You Obtain The License? Gaining the license could make the Thai company registration process easier but getting it is no easy task unless you hire the services of a top notch legal team. For starters, you need to convince Thai authorities that your proposed business couldnt be carried out competently by a company that is owned by a Thai majority, that the business does not pose a threat to national security or stability and that it is beneficial to the Thai economy.
If you think carefully, the difficulties of proving all of the above are glaringly obvious. The most blatant culprit is the first issue: How can you prove that a bar or restaurant business cant be competently managed by a majority Thai owned company? Simple answer, you cant!
The Process Unlike the Thai company registration process, obtaining the license seems simple in theory. All you have to do is send your application to the Ministry of Commerce before you start up your business. The Foreign Business Committee reviews the application and must make a decision within 60 days. However, the application itself is very complex and could take months to figure out. Assuming you file under your foreign companys name, you need to have corporate documents certified by the local foreign minister, the Thai embassy and a public notary. In most cases, you are better off beginning the Thai company registration process as a Thai company and allow that company to fill in the application.
Rejection Or Acceptance If you application is rejected, the Foreign Business Committee will inform you in writing within 15 days of their decision. This letter will explain the reason(s) for your rejection. You can appeal within 30 days of receiving the written notice. If your application is accepted, it will be subject to certain conditions including the minimum capital requirement and number of foreign directors who can reside in the country. Under the license, your business needs initial capital of at least 3 million baht or 25% of the annual spending projection over a 3 year period with the larger figure taken into account.
Are the rules of foreign business license and Thai company registration getting you down? If so, simply contact a Thai legal team as they successfully bypass all this legal tape and get you started.