Background
Thailand is strategically situated in Southeast Asia, bordered by Cambodia to the southeast, Laos to the north and northeast, Myanmar to the north and west, and Malaysia to the south. It has extensive coastlines along the Andaman Sea to the west and the Gulf of Thailand to the east.
Thailand’s population is approximately 69.63 million, as of December 2019. The predominant ethnic group is Thai, with minorities of Chinese, Cambodians, Laotians, Malays and various indigenous hill-tribes. The national language is Thai, with minor regional variations. English is used in certain commercial circles and in tourist areas, but otherwise is not widely spoken.
Incorporation Process and Timeline
| Limited Liability Company (Local) | Limited Liability Company (Foreign-owned) | Limited Liability Company (Free Zone) | Public Listed Company | Representative Office | Branch | |
| Minimum number of directors | 1 | 1 | 1 | 1 | 1 | 1 |
| Minimum number of shareholders | 3 | 3 | 3 | 15 | Parent Company | Parent Company |
| Local Presence (director/ shareholder/ officer) | No | No | No | No | Yes | Yes |
| Maximum Foreign Shareholding | 49% | 100% | 100% | 100% | 100% | 100% |
| Physical registered office address requirement | Yes | Yes | Yes | Yes | Yes | Yes |
| Minimum Paid Up Share Capital | THB 15 | THB 2m – 3m | THB 2m – 3m | THB 50m | THB 3m | THB 3m |
| Security Deposit Required by Local Government | No | No | No | No | No | No |
| Preference Shareholder Option | Yes | Yes | Yes | Yes | No | No |
| Incorporation Timeline | 2 weeks | 2 weeks | 2 weeks | 2 – 3 weeks | 2 – 3 weeks | 2 – 3 weeks |
| Public Register of Shareholders and Directors | Yes | Yes | Yes | Yes | Yes | Yes |
| Regulator | DBD | DBD | DBD | DBD | DBD | DBD |
Taxation and Accounting
| Limited Liability Company (Local) | Limited Liability Company (Foreign-owned) | Limited Liability Company (Free Zone) | Public Listed Company | Representative Office | Branch | |
| Corporate Tax | 20% | 20% | 0% | 20% | 0% | 20% |
| Annual Tax Return filing | Yes | Yes | Yes | Yes | Yes | Yes |
| Entry to double taxation treaties | Yes | Yes | Yes | Yes | No | Yes |
| GST Reporting to Local Government | Yes | Yes | Yes | Yes | Yes | Yes |
| Auditor Requirement | Yes | Yes | Yes | Yes | Yes | Yes |
| VAT Payable for local sales | 7% | 7% | 0% | 7% | N/A | 7% |
| Confidentiality | Disclosure of public register of shareholders and directors | |||||
| Expatriate & local staff | 4:1 ratio | |||||
| Security Deposits | No security deposits to the authorities/ government | |||||
| International currency control on remittance | Yes | |||||
Others
| Limited Liability Company (Local) | Limited Liability Company (Foreign-owned) | Limited Liability Company (Free Zone) | Public Listed Company | Representative Office | Branch | |
| General Activity | Most products and services | Most products and services | International Trading | Public Funding | Research and Marketing | Support Parent Entity |
| Local Citizen Sponsorship | No | No | No | No | No | No |
| Access to residence visa (for owners) | Yes | Yes | Yes | Yes | Yes | Yes |
| Access to Government Grants | Yes | Yes | Yes | Yes | No | Yes |
| Conversion to a Public Listed Company? | Yes | Yes | Yes | N/A | No | No |
| Local Citizenship Requirement | No | No | No | No | No | No |
| Maximum Staffs Allowed | No Limit | No Limit | No Limit | No Limit | No Limit | No Limit |
| Option to hire local staff | Yes | Yes | Yes | Yes | Yes | Yes |
| Obtain Import and Export License | Yes | Yes | Yes | Yes | No | Yes |
Corporate Bank Account
| Corporate Bank Account Available | Bank account in Asia, upon request. | |||||
| Multi-currency option | Yes | |||||
| Multi-currency option | Great | |||||
| Corporate Debit Cards | Yes | |||||
| Bank Account Opening Timeline | 1 – 4 months | |||||
Thailand offers the following benefits:
- Good infrastructure
Thailand has been popular amongst investors since the implementation of the Eastern Economic Carrodor (EEC), which has led to Thailand being on top of their transportation, logistics and infrastructural services. - Tax Incentives
Reasonable corporate income taxes range from 10% to 30% depending on the profits. Moreover, corporate tax holidays can be granted by the Thailand Board of Investment (BOI) to companies investing in designated industries. Companies may also claim a 200% rebate on research and development costs, and allowance for job training expenses. All local businesses can also carry forward losses up to 5 years. - Easy company setup and procedures
Thailand is reported as one of the easiest places to do business in the entire world, doing business in the country is straightforward. The easiness covers from the bureaucratic procedures to the application costs involved. - Large consumer market
Thailand is ranked as the 40th most attractive consumer market in the world by the World Economic Forum.
Thailand Company Registration Guide
Department of Business Development (DBD) The Department of Business Development (the “DBD”) (in Thai: กรมพัฒนาธุรกิจการค้า) is one of the Thai government agencies that most Thais and foreigners doing businesses in Thailand have to deal with most frequently.
The DBD is primarily responsible for regulating and enforcing the following laws:
• the Civil and Commercial Code, Book III, Title XXII (the law on partnerships and private limited companies);
• the Public Limited Companies Act;
• the Trade Associations Act;
• the Chambers of Commerce Act;
• the Act Prescribing Offences relating Registered Partnerships, Limited Partnerships, Limited Companies, Foundations and Associations (commonly referred to as the Corporate Offences Act);
• the Commercial Registration Act;
• the Accounting Act;
• the Accounting Professions Act; and
• the Foreign Business Operations Act (the “FBA”).
Enigmatig Services in Thaiand
With more than a decade of experience, our team at Enigmatig is here to meet your business needs beyond just company formation. We also provide the following services in the Thailand:
- Company formation
- Obtaining Tax Residency Certificate – on completion of 1 financial year*
- Assistance in Business Management
- Corporate Management advisory
- Real Estate advisory for both residential and commercial properties
- Provision of registered agent and registered address
- Provision of company management, directorship, and shareholding services
- License application assistance
- Funds setup and structuring
- Onshore/ Offshore bank account introductions and applications
- Virtual office services and other corporate services
- Nominee services
Application Process:
- Submit your interest here
- Our Offshore Formation Specialists will reach out to you for an in-depth discussion
- A customised proposal will be sent to you upon uncovering your needs,
- Upon the proposal confirmation, we will require the of the following information for the application
- Proof of Identity
- Proof of Residence (within the last 3 months)
- director(s),
- shareholder(s) and
- beneficial owner(s)
Once the above has been approved, we will send you an invoice for payment.
The incorporation process will commence upon receiving payment