Starting up a company in Thailand can be an exciting challenge and very rewarding if done properly. However many people stumble at the first hurdle which is part of the company registration in Thailand process as they do not research enough about what is involved, required and whether or not their particular business meets the criteria needed. This article will act as a very brief FAQ in terms of doing business in Thailand. It is only for reference and there are other websites out there which deal with company registration in Thailand or are more specialist (e.g. law firms) but this article and brief FAQ can serve people well who are just considering the option of having a business in Thailand.
The first, and perhaps most obvious question of all, is what actual sanctions are imposed on a business by the Thai government? For the answer to this it relates to the Thai Foreign business act which was established in 1999 and regulates the business activities of foreigners in Thailand. The act classifies business activity into three categories and places restrictions of various degrees of severity on foreign ownership and operation of these businesses.
The second question is equally as important as the first. Company registration in Thailand has many rules and regulations compared to what business owners may be used to and the main issue that many people have is just how much of the company they have registered in Thailand do they own once it has been successfully registered? The answer this is quite simple. The vast majority of foreigners can register a company in Thailand and go through the company registration process and the truth is that
the vast majority of foreigners in Thailand register a Thai majority company. This is a company that has 51% or more of Thai shareholders. This means that you cannot obviously register a company with no Thai staff or employees as this will not be allowed.
Furthermore there is a requirement that you must have a certain number of Thai staff to every foreigner who is also employed and also all foreigners must have a work permit also that can only be granted through more paperwork and the employee must also be university educated which proves also that they are capable of their role and are bringing knowledge in to Thailand whilst working for the business they are employed with. There are many different factors that need to be considered for company registration in Thailand such as what to do if you are considering starting up a Thai branch of an already existing company compared to starting an entirely new business. You need to decide what sort of business to establish and what kind of business will be created such as sole proprietorships, limited and unlimited partnerships, private limited companies, public limited companies, branch offices and representative and regional offices. Suffice to say there is a lot of hard work involved in company registration in Thailand but the benefits of succeeding are far worth it.
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