Company Formation in Thailand
Foreign investment is promoted in Thailand and various investment policies facilitate businesses that focus on technology, innovation and the promotion of a sustainable environment. Although the Foreign Business Act does contain some restrictions for foreign investors, and special conditions in selected cases, the Government has been working on the liberalization of trade.
Tax incentives are in addition to the favorable business climate. Investors can benefit from tax and non-tax incentives, according to the type of activity they undertake. Examples of activities eligible for corporate tax exemption and other tax advantages include those in the R&D field, advanced technology training, the development of local suppliers in advance technology training and technical assistance and others.
Investors interested in registering a company in Thailand should receive the advice of our Thai company formation specialists, as the incorporation process requires several mandatory steps.
We can assist investors throughout the entire company registration procedure in Thailand
in order to legally set up their businesses in this country.
Our company formation specialists
can offer you assistance in choosing a legal entity suitable to your investment plans, such as:
• limited liability company;
• public limited company;
• branch office;
• representative office.
Do you need quick information on how to open a company in Thailand? Here is a concise video about the process of company formation in this country:
Steps for opening a company in Thailand
The list below includes the main requirements that have to be met when registering a company in Thailand; our company incorporation specialists can offer extensive assistance on all the stages of company incorporation:
- Choosing the company type and an original name: investors will choose the suitable type of company, a private or public legal entity and select an original name; a name check can be performed beforehand.
- Opening a bank account: this is a mandatory step as the needed minimum share capital will be deposited here.
- Draw up the company’s constitutive documents: the Articles of Incorporation and Articles of Association or Bylaws are the constitutive documents of a limited company.
- Register the business: all companies are registered with the Department of Business Development and with the Revenue Department for tax purposes.
- Obtain any other needed licenses: sector-specific licenses will be needed in Thailand and our team of lawyers can help you apply for these with the corresponding authorities.
Our local company formation specialists
have an extensive experience in company formation cases and can give you an insight into the local business environment and on the current legal framework. We can also help you with the subsequent steps following the actual business and tax registration of the business. Included here are the requirements for hiring employees.
Legal entities in Thailand
When investors decide to open a company in Thailand, they can choose from several legal entities. Our specialists in company registration in Thailand can offer you guidance in choosing a certain type of business entity, according to the value you want to invest in the company and to the risks you want to assume as an investor.
- The private Royalgames.com: Games Onlinelimited liability company requires having a minimum of 3 shareholders and a director. The founders must be Thai or foreign individuals and each founder must own at least one share of the company
- The public limited company must have a minimum of 15 shareholders and while there are no nationality restrictions, more than half of the company founders must be Thai residents. For this company, at least 50% of the number of shares mentioned in the Memorandum of Association must be made public.
- The branch office in Thailand is considered a permanent establishment in Thailand and will be treated as such. The needed minimum share capital upon incorporation will depend on the period of time during which the branch will operate in Thailand (less than three years or more). When the branch will be active for three years or more, at least 25% of the capital will be remitted during the first three months.
- The representative office can have 100% foreign ownership; this entity is not taxed with corporate taxes in Thailand, however, it and cannot provide commercial services and cannot derive income in the country.
All companies in Thailand must observe the principles for taxation as well as the accounting, filing and auditing requirements. The Financial Reporting Standards are the ones used by companies in order to prepare their financial statements.
If you need further information on how to open a company in Thailand, please contact our company incorporation specialists, who can provide you with adequate assistance in choosing a legal entity that will best fit your interests; our specialists can help you throughout all the stages of the incorporation process and can offer you related services, such as the opening of a virtual office or accounting services for your company. Our team can also help foreigners interested in moving to Thailand obtain long-term visas or other types of visas depending on their particular situations. We can handle the entire visa application procedure from helping you gather the necessary documents to submitting them with the responsible institution.
Corporate taxation in Thailand
Companies in Thailand are subject to a set of taxes that include the corporate income tax, the business tax, the stamp duty, and the value-added tax. The excise tax and the petroleum income tax are also applicable taxes that are governed by special Acts, the Excise Act, and the Petroleum Income Tax Act, respectively. All other taxes are governed by the Revenue Code. One of our agents who specialize in Thai company formation can give you complete details about the provisions of the relevant Codes and Acts.
A difference between the taxation of locally registered companies and branches of foreign companies is that resident companies are taxed on their worldwide income while foreign companies are taxed on the profits they derive from a Thai source. Petroleum companies in Thailand are subject to a higher tax, 50% of their net profits. One of our agents can detail in this subject.
Foreign companies doing business in Thailand are subject to the corporate income tax rate, including but not limited to when carrying out the respective business under a double tax treaty.
Some company expenses related to earning income in the country are deductive and include donations (with a certain limit), entertainment expenses (up to 0.3% of the paid-up capital or the gross revenue – the one that is higher but only up to 10 million THB), employer contributions made to the provident fund, losses, depreciation and others. Special deductions can apply to research and development expenditure, as much as an additional one of up to 200% under certain conditions.
Corporate reporting in Thailand
The tax year is generally the calendar year (ending on December 31st) but it can be any 12-month period. A tax year shorter than 12 months is only allowed in the company’s first year after incorporation, in the year of its dissolution or when a change in the accounting method applies.
Companies are required to file self-assessed annual corporate income tax returns no later than 150 days after the end of the accounting period. the sale filing requirement also applies to foreign companies. Fines apply for late filing as well as inaccurate filing.
Thailand is an attractive option for investors in South Asia, especially due to the recent changes and the liberalization of the investment policies. Foreign investors are welcomed, although special consideration is needed in certain business sectors. When the foreign company promotes technology, innovation and the development of skills, it can benefit from important advantages.
Businessmen in need of company incorporation services in Hong Kong, assistance in forming a company in Japan or company incorporation services in India will be put in touch with our Asian partners, such as LawOfficeMalaysia.com. Asian investors interested in expanding their businesses in Europe, for example in Slovenia or in Switzerland, can receive specialized assistance from our partners: Firmengründung Agentur in der Schweiz. Businessmen interested in investing in other European countries, such as Ireland, our partners who are experts in Irish company formation matters can help them.
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