As of today, doing business in Thailand is becoming increasingly attractive due to the country’s economic growth. Many foreign investors are enticed by robust government support for entrepreneurs and the infrastructure that creates a favorable business environment within Thailand’s jurisdiction.
The modern Kingdom of Thailand strongly advocates a policy of free trade, and its strategic location in Asia solidifies Thailand’s position, making it an attractive destination not only for tourism but also for business.
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Opening a company and a bank account in Thailand
Before registering a company in Thailand, you should choose the legal form for your business. Here are the main popular legal forms for businesses in Thailand:
- Limited Company (Company Limited or Thai Company Limited): This type of company is most suitable for small and medium-sized businesses, making it the most in-demand. Company members are not personally liable for the company’s debts and are only responsible for the company’s obligations up to the extent of their contributions. It requires a minimum of 1 director and 2 shareholders.
- Partnership (Thai Partnership): Partnerships in Thailand can be either general or limited. In the case of a limited partnership, partners’ liability is limited to the amount they have contributed.
- Public Company (Thai Public Company): This type of company is equivalent to a public joint-stock company. The minimum number of founders for such a company is 15.
Company registration process in Thailand
Thailand currently offers one of the simplest company registration procedures. Registering your business in Thailand in 2023 is straightforward, but you need to consider local regulations. However, there’s no need to worry; the government’s attitude toward foreign business owners is getting more favorable.
In addition, remote registration with the assistance of our specialists is possible. In this case, the registration process consists of the following stages:
- Choosing a company name;
- Determining the type of business activity;
- Collecting documents for shareholders and directors;
- Notarizing and legalizing documents (if necessary);
- Submitting documents to the Thailand Company Registry.
Our specialists will then prepare a set of registration documents, which will be sent via email within a working week. Signed copies of the documents can be submitted through DHL or other courier services.
In general, the remote company registration process takes 1 to 5 working days.
It’s worth noting that to complete the procedure and fully operate your business, you need to open an account with a Thai bank. That requires the presence of one of the directors. Our specialists will guide them through the process.
After opening a corporate account, the company will need to inject registered capital. For example, for the most popular form, a limited company, the minimum registered capital is THB 15.
Taxes
- If the company’s profit is up to THB 300,000, there will be no corporate tax.
- If the company’s profit is between THB 300,000 and THB 3 million, the corporate tax is 15%.
- If the company’s profit exceeds THB 3 million, the corporate tax is 20%.
The value-added tax (VAT) is 7%. However, individual entrepreneurs and small businesses (with income less than THB 1.8 million) are exempt from paying VAT.
Financial reporting
According to Thai law, the reporting period is 12 months, after which the company is required to provide primary documents for operations (contracts, invoices, and statements).
Opening a corporate account in a Thai Bank
Opening an account for a company in a Thai bank is not difficult, but having non-residents in the structure can complicate the process and often requires the assistance of specialists.
Before approaching a Thai bank, you need to gather the necessary documents.
The general package includes documents such as:
- Certificate of incorporation;
- Affidavit;
- Memorandum of Association;
- The Minutes of Statutory Meeting;
- Shareholder list;
- Articles of Association;
- Particulars of Incorporation.
Additional documents that may be required include:
- A resolution by the director regarding the account and internet banking opening, appointment of an account manager (the bank’s branch and department must be specified);
- A business plan (in some cases).
Tips to keep it mind while doing business in Thailand
It’s worth noting that when opening an account in a Thai bank, the entire set of documents must be in the Thai language. This can create many difficulties when attempting to open an account independently.
Advantages of opening a bank account in Thailand include:
- A reliable banking system;
- The ability to open accounts in different currencies;
- The possibility of opening multiple accounts in different branches of the same bank;
- No additional fees for bank services in another branch within the same province;
- All accounts are linked to a single internet banking account;
- The ability to open a bank account on a tourist visa.
Conclusion
Doing business in Thailand has its peculiarities. To successfully open a company and a bank account in this country, you need to have a good understanding of local legislation. However, the favorable business conditions make these efforts worthwhile.
Thailand offers many attractive conditions for both small and large businesses. Thanks to its strategic location in Asia, Thailand is recognized as the most attractive place to register a company and open a bank account. The country is currently promoting support for small businesses, startups, and new technologies.
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