Establish a company in Thailand

(5/15) The Thai authorities are doing their best to create appealing conditions for international entrepreneurs who are naturally looking for destinations with a sufficiently high reputation in the business world that offer stable political and economic conditions. Thailand has it all for you to enjoy! We strongly recommend taking advantage of company registration in Thailand, namely - on the island of Phuket, to benefit from world-class services and beneficial conditions. This post is focused on the details of legal entity incorporation in Thailand.

Why Opt for Thailand?

The country has a beneficial location, which makes it possible to easily access a number of regional markets. The local authorities have elaborated numerous incentives to stimulate the influx of foreign capital. And if the markets of Southeast Asia located nearby are of interest to you, you will hardly find a better place than Thailand.

Let's consider the main benefits of company setup here:

• A local company can be established by residents and non-residents alike, and 100% foreign ownership is allowed.
• Thailand offers access to cutting-edge technologies and well-developed infrastructure.
• There are plenty of local employees available.
• There are minimal administrative hurdles to company registration.
• You can set up a subsidiary, a limited liability company, or a representative office of a foreign company.
• The taxation policy is quite adaptable: some kinds of businesses can be exempted or receive tax benefits. Anyway, the tax rates are quite competitive.
• You can operate on the internal market which is quite large.
• The country's economy is rapidly developing, which allows it to offer great opportunities to foreign entrepreneurs.

• The registration costs THB 45,000.
• You will have to submit three company names for approval (they should be unique and easy to pronounce). If everything goes well, the name will be approved within seven days.
• Company registration in Thailand requires one shareholder who is a permanent resident, two local founders, and one resident director.
• You can have up to 2 foreign employees.
• The minimum authorized capital threshold is THB 4 million.
• You will have to provide proof of having office premises (this should be non-residential property).
• The documents to be filed:
• A house book (copy)
• Chanot (a local name for the land paper)
• Leasing company's documents/lessor's ID card
• Office map

• The balance sheet costs THB 20,000. Keep in mind that you cannot delay your primary documentation for more than 3 months after the end of the relevant reporting year.
• If you want to extend a work permit for 1 year, you will need to pay THB 22,000 plus THB 3,000 if your company has no office, does not employ 4 local workers per one foreigner, or rents out motorcycles, cars, or real property.
• If you want to extend a work permit for 2 years, you will need to pay THB 25,000 plus THB 3,000 if your company has no office, does not employ 4 local workers per one foreigner, or rents out motorcycles, cars, or real property.
• If you need to extend a Non-B visa for 1 year, the fee equals THB 45,000.
• If your family member needs to extend his or her Non-O visa, it will cost THB 15,000.
• Office premises on Phuket will cost THB 70,000 and more.
• The total annual costs per one person will amount to approximately THB 157,000.
• If you have a 4-member family, the overall expenses will equal about THB 203,000.

• Keep in mind that you will need to pay monthly contributions to the Social Insurance Fund that range between THB 1,100 and THB 1,500 per local employee (who is not a director) and equal THB 1,500 per foreign employee (who is not a director, either).
• The payroll tax for EU citizens amounts to THB 1,800 and more.
• The monthly company maintenance costs after you have been registered as a VAT payer equals THB 5,000 (this is the upper limit). This amount excludes the fee for the analysis and processing of the documents provided by the customer.
• If you have not been registered as a VAT payer, the company's monthly maintenance costs amount to THB 4,000 and more.
• If you employ one foreign employee, the overall monthly expenses will amount to THB 8,860.
• Two foreigners will cost about THB 15,220.

• Travel expenses
• Consular fees
• Courier services
• Sending correspondence
• Drafting primary documents, such as agreements with clients, invoices, and receipts
• Finding premises to locate your office and warehouse in case of need
• Recruitment of employees
• Elaboration and checking of contracts and agreements (labor agreements, lease agreements, and so on)
• Finding appropriate partners and suppliers
• Search for suitable goods and services
• Interpreter's services
• Taking part in negotiations
• Translation of documents

• You may need help with opening a corporate account, and a specialist will do that for you in a matter of 3 days.
• As we mentioned above, the first change in the constituent documents is done seamlessly. However, the second and the next one may be tricky, so we can help you with that.
• We can help you obtain a Non-B visa valid for 3 months in a foreign consulate within 3 weeks.
• It will also take 3 weeks to prepare a package of documents and get a Non-O visa for a member of your family.
• Receiving a local work permit will take us 3 to 5 weeks.
• If you want to replace directors and shareholders with foreign ones, it can be done within 7 days after you receive a work permit.