Registering a Limited Company in Thailand is one of the most popular ways to start a business in the country. It offers a number of benefits, including a separate legal entity and reduced financial liability.
However, you should consider that it takes time and effort to run a business in Thailand. Moreover, you must meet several requirements, such as minimum share capital and VAT registration.
Requirements for a company name
A company name is an important requirement for a business in Thailand. It needs to be unique and it should not resemble any other registered companies in Thailand. It should also include the word “Limited.” In addition, it is recommended to reserve three names ranked by preference to increase your chances of getting the preferred name.
After settling on a company name, you must hold a statutory meeting. During this meeting, the articles of incorporation and by-laws are drafted and the directors and auditors are appointed. You also need to decide on the share capital for your business.
Once the above requirements have been met, you can lodge your documents with the Ministry of Commerce. Once the process is completed, you will receive a registration certificate and tax ID number.
Requirements for a registered address
The registered address is an important aspect of company registration in Thailand. It is required by law that the company have a legal domicile in the country. This allows the company to receive legal notices and mail. In addition, it is a requirement for VAT registration.
A registered address must be a commercial space and should be a place where the company conducts its business activities. It should also be a location that can easily be reached by the company’s employees.
A limited company is a popular business vehicle for foreigners in Thailand because it creates a separate legal entity and protects individual shareholders from unlimited liability. It also has lower capital requirements than other types of businesses and allows for a higher number of work permits and visas.
Requirements for a registered agent
Company registration in Thailand is a complicated process, so it’s best to partner with a firm that specializes in this area. They’ll ensure that your documents are correct and complete. They will also recheck them for errors and inauthentic information. In addition, they will handle financial submission requirements and other important details.
The first step is to reserve a name for your business at the Department of Business Development (DBD). This should be done within three days. The name must end with “limited”. Then, you must convene a statutory meeting and submit the memorandum of association and minutes of the statutory meeting. You must also register your company for value-added tax and corporate income tax.
Requirements for a board of directors
The board of directors of a company in Thailand must meet certain requirements under the Thai Civil and Commercial Code (CCC). It must also abide by the Securities and Exchange Act B.E. 2535 (1992) as amended up to No. 4 B.E. 2551 (2008) for public limited companies that are listed on the Stock Exchange of Thailand (SET).
In addition, a company must have enough capital to allow it to operate and cover expenses. There are no restrictions on the number of shareholders, but more than half of them must be Thai residents. The company must also prepare financial statements and submit them to the Department of Business Development within one month of its year-end.
The company must also maintain a book of share certificates and keep an updated list of shareholders. The book of shares must be kept at the registered office. Directors can resign from the company by submitting a resignation letter to the registrar.
Requirements for a statutory meeting
Depending on the type of company you are planning to register in Thailand, there may be different requirements for a statutory meeting. For instance, the minimum share capital can vary from one type of business to another. There is also a stamp duty that must be paid on several documents needed for registration, and a subsequent fee for the company’s registration certificate.
The statutory meeting is where the share structure for the company is defined, the memorandum of association and articles of association are approved, and the board of directors and auditor are elected. It is important to ensure that a quorum is present at the statutory meeting. This includes a minimum of one-fourth of the capital represented by shareholders, either in person or by proxy.