Thailand Company Formation

Opening a company in Thailand

Why start a company in Thailand? What are the advantages in the country of Thailand?
Thailand, also once called "Siam", is an exotic and interesting country, and is an attractive place for investments.

The country borders India, and is more or less halfway to Japan, Australia, New Zealand, etc.

The local currency is the Thai baht (THB), and living is very cheap in the country. Thailand has one of the cheapest living costs in the world, so investing in profitable properties there is particularly easy, with a high return on money.

Real estate in Thailand
You can invest in residential properties, especially in big cities like Bangkok and Phuket.

Projects of rental apartments and vacation apartments are developing strongly in Thailand.

You can also invest in the construction of hotels, at simply insane prices compared to almost anywhere else in the world.

Tourism
Thailand is a very popular tourist destination. Investing in hotels, restaurants, or tour services can be profitable and should be examined.

The process of opening a company in Thailand
Opening a company in Thailand begins with the signing of a notarial power of attorney to open a company by a local agent. The document is then sent with a courier urgently and the company is established.

In Thailand there is no need for a local director. A minimum of 1 director is required, can be a resident and a foreign citizen.

However, in Thailand a minimum of 2 shareholders is required, and 51% of the shares must be held by a local Thai resident.

In reality, 2 companies can be established, and company A will be a 51% shareholder of B, and B will be a 51% shareholder in company A. And so the only shareholder that appears in the documents is the customer.

Another option is to create two types of shares in the company: one type will be "equity shares" and the other type will be "voting shares", where then the voting shares will all be 100% in the hands of the foreign company founder, while the "capital shares" will be 51% in the hands of the local Thai resident, And 49% will be in the hands of the founder of the foreign company.

Equity Requirements
Although there is a requirement of equity capital for the Thai company, in practice it is not required to deposit it. This means that the equity remains as a debt of the shareholders to the company.

Opening a bank account in Thailand - current account for the company
After opening the company, it is time to open a current bank account in Thailand for the company.

In Thailand, it is required to physically go to a branch of the Thai bank in order to open the account.

However, there is an alternative, and that is opening an internet bank account. Indeed, similar to our "Zero One" bank, there are Internet banks that would be happy to accept your company in Thailand as a customer.

VAT registration
After the opening of the company, the registration of the new company in VAT will also take place. The company will receive a VAT number and you can start trading.

Company maintenance
The company requires annual maintenance of payment of fees, annual submissions, local address (which we will provide for you), as well as submissions to the tax authority.

However, all costs in Thailand are very low due to the cheap cost of living.

Tax in Thailand
The corporate tax in Thailand has been at a very low rate of only 20% for years.

For sales to the local Thai market, the VAT is 7%.

Work Permit
If the founder of the company wants to get a "foreign worker" permit, he needs a work permit from the authorities in Thailand. For this, first of all, a company is required. It should be noted that the company's equity is 2 million baht. As written above, you don't have to actually pay it. The foreigner (founder of the company) is required to register with the Tax Authority. A local address is required for a foreigner, but it is possible to register the address in any office. In addition, for the purpose of obtaining the work permit from the authorities, you will have to pay social insurance for 4 Thai residents, at least for one month. If you meet all these conditions, you can apply for a work permit in Thailand.

Questions and answers
Question: Is it necessary to physically fly to Thailand to open a company in Thailand?
Answer: The entire process is carried out remotely and at no stage is it necessary to physically come to Thailand. There is no need to fly to Thailand to open the company in Thailand. It is also required to physically arrive in Thailand to open the company's bank account, towards the end of the process. However, the entire process of opening a company in Thailand is carried out remotely without stepping on Thai soil.

Question: Who provides the local address for the company in the new Thailand?
Answer: We will provide the local address.

Question: How can I find a good accountant who can handle the company in our new Thailand?
Answer: We will connect you with a local accountant.

Question: If I want to come to Thailand to open a bank account, what should I do?
Answer: We will try ahead of time to arrange a meeting for you at the branch in order to sign the account opening forms, so that everything will be in order before you arrive, so that you don't just walk around the city in order to find a branch that will accept you and open a bank account for a company in your new Thailand.

Question: What type of company in Thailand should I open?
Answer: In Thailand there is only one type of limited company called Limited, or Ltd for short. This is the suffix of our "Ltd". How can that be? Thailand was once a province of England. This is the common and only type of company in Thailand, so there is not much reason to hesitate about what type of company to open in Thailand.

Question: How long does it take to open a company in Thailand?
Answer: The process of opening the company can take even one day, but to appoint the new directors and get shares in the company, it takes about 3-4 weeks. After that, the process of opening a bank account takes approximately 1-2 weeks, depending on the readiness of the banks to accept the new company as a customer. Of course, these are times that depend on third parties, so this is only an estimate.

Question: Is it possible to open a company in Thailand for a person with American citizenship or a person living in the USA?
Answer: Yes. We know how to open a company in Thailand for a person with American citizenship or a person living in the USA.

Question: How much does it cost to open a company in Thailand?
Answer: Click here to contact us and get an up-to-date quote for free!