If you are one of the many foreigners who have relocated to Thailand and you have your sights set on creating a business in the kingdom, you have definitely come to the right place, as we present valuable advice and information on how best to set up a foreign business in Thailand.
Business Registration Options
For a foreigner wishing to set up a business entity in Thailand, there are 3 options:
- Representative Office – The RO is designed for a foreign company that wishes to carry out market research before making plans to trade. This is a non-trading entity that is not subject to local compliance; if you are considering trading in Thailand, this would be the best entity to register. The company can be set up within 1 month of the process commencement, and if you are planning to invite foreign investors, you can rent a meeting room in Bangkok at one of the top hotels.
- Private Limited Company – The PLC requires a Thai or Thais to hold a minimum of 51% of company shares, while a foreigner can hold the remaining 49%. If you have a Thai spouse, you could have her be the majority Thai shareholder. This is a trading entity that is subject to local laws, and an established international law firm can facilitate this operation. A PLC can be created in 1 week.
- Branch Office – This is perfect for an international company that wishes to open a trading branch in Thailand; foreign ownership can be 100%, and no shareholders are required. There is a minimum capital requirement of 3 million baht. This can take up to 5 months to complete.
We recommend consulting with an established international law firm that has offices in Bangkok, Thailand. They have the know-how to give you the best advice, and they can facilitate the registration on your behalf. This short article explores the importance of good leadership in business.
Thai Board of Investment
Check out the BOI website to discover valuable information for foreign investors, which will help you to prepare for the registration process. You will, of course, have to open Thai bank accounts; your lawyer will give you a list of documents and things you have to produce.
Work Permits
If you plan to actively work for the company, you will need to apply to the Ministry of Labour for a work permit. The law states that you must have at least 4 Thai employees in order to hire one foreigner. Talk to your lawyer about this, and they can enlighten you as to how to go about obtaining permission to work in Thailand. A work permit runs alongside your Non-Immigrant visa, and when that is soon to expire, you need to renew it at a Thai Immigration Office and then renew the work permit at the Ministry of Labour.
We hope this short blog helps you navigate the process of registering a business in Thailand.
