How to setup a company in Thailand
Thailand is a country that once visited, tends to stay in your blood. It is hard for most to experience the happy nature of Thai people, stunning scenery and weather, only to return to a normal life back home. The draw of life in Thailand draws many to return, often on a permanent basis.
The Thai business market is also a very interesting one. Thailand is a developing country, but far from being rated as third world. This means that there is a good quality of life, combined with a market place that is full of opportunities. From production to service sectors, there is a lot of money to be earned by entrepreneurs in the expanding Thai market.
It is for these two reasons that many decide to setup a company. However, before doing so, there are certain laws that need to be understood. Thailand has restrictions on business that apply to foreign owned companies. That said, with a good lawyer and the correct setup, the Thai business market can be cracked wide open .
How to structure a Thai company
Thai law is quite complicated when it comes to business, but thankfully there are ways to simplify things. As a foreign entity, you and your business operations are restricted. This means that if you own over 49 percent of the shares, then you may have to follow the foreign business restrictions.
The way around this is to have a couple of Thai business partners, or nominated partners, to register the company as a Thai private limited company. This then allows the business to do almost anything that is legal for a Thai person, as it is now classed as being Thai. Yet, the company can be under the full control of the foreign owner; to ensure your investment is safe.
To give control to the foreign owner, the foreign shares can have weighted voting rights, or the foreigner can be the sole signatory on the company. This means that despite having Thai names on the shares, the foreign business investor can have complete control. If you have real and active Thai business partners, this can also be setup to give you equal voting rights and control, regardless of the lower amount of shares held. For most, this adds a nice level of security to owning a business in Thailand.
Hiring a specialist for company registration
Due to the legalities involved and paperwork required, most people never try to register a Thai company on their own. For a start, most of the paperwork will be written in Thai script. Any that isn’t already in Thai, will need to be translated. Then there is a certain order to the registration process and many elements of this process require previous phases to be completed before they can be actioned. If you are not experienced, it can be very confusing.
Thankfully, hiring a Thailand market entry specialist isn’t very expensive. They can help you to get everything registered legally and hassle free. However, they can then also be your personal ‘in country’ support. Being a marketing and business professional themselves, they can connect you with the right people and help you to arrange whatever you need to get your company making a profit quickly. Contact the Startup specialists to check out the various options that they have to offer for starting up a business in Thailand.
For more detailed overview of how to register a company, work procedures, visa & work permits, check out this legal assistance section.
As Startup Specialists we have used our knowledge and experience to set up a free portal of frank, accurate information. Do check out www.startupinthailand.com for more details on doing business in Thailand or for a free startup consultation. We operate as a single source for your business operations in Thailand/Asia with our Thailand Market Entry Services and we specialize in Startups | Representations | Regional Business Development | Virtual Offices | Liaison Services. Check out your options here.