Company Formation in Thailand

Roadmap

How long does it take to register a Company in Thailand?

It would be not fair to set your expectations in a way to assume for the incorporation to be finished within a day. In some jurisdictions it is extraordinary fast (for example in Estonia) in some slower. It all boils down to one thing: 'When are the necessary (basic) documents ready?' The process is counted from the moment on we have all the needed documents. Please consult with our consultants to understand what documents you need to kick-start the process.

• 5-10 working days if done locally provided all requirements is complete
• 7-15 days if done remotely
• Note: Process includes securing a POA and execution of the Memorandum of Association

What are the steps to register a company in Thailand?

The registration process of a company in Company Formation in Japan with LegalBison is very simple: Contact us for more details

Taxes

How high are the corporate income tax in Thailand?

Corporate income tax is at the rate of 15% if net profit is at least 300,000 to 3 million baht or at the rate of 20% if net profit is more than 3 million baht.

• Rate may be lower that 15% under special circumstances depending on how the income is sourced
• Dividends are also taxed at the rate of 10%
• For purposes of payment of CIT, companies will have to estimate their annual profit and pay half of the estimated tax liability within two months after the first half of its accounting period

What Double-tax treaties has Thailand?

Similar to other jurisdictions, Thailand also have Double Taxation Agreements (DTAs) with various countries, to with: Armenia, Australia, Austria, Bahrain, Bangladesh, Belarus, Belgium, Bulgaria, Cambodia, Canada, Chile, China, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Great Britain and Northern Ireland, Hong Kong, Hungary, India, Indonesia, Ireland, Israel, Italy, Japan, Korea, Kuwait, Luxembourg, Malaysia, Mauritius, Myanmar, Nepal, Netherlands, New Zealand, Norway, Oman, Pakistan, Philippines, Poland, Romania, Russian, Seychelles, Singapore, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Chinese Taipei, Tajikistan, Turkey, Ukraine, United Arab Emirates, United States of America, Uzbekistan, Vietnam

VAT number

Without VAT number

• For companies which do not reach the income threshold are not required to register for VAT but can neither charge VAT as well nor can it claim for input tax

With VAT number

• Every company must register for VAT before its operation or within 30 days upon reaching the income threshold of 1.8 million baht
• Generally, rate is at 7%. Some activities specifically identified are liable at a rate of 0%
• VAT returns and payment are to be filed on a monthly basis
• Note: If your chosen business is among the industries/activities that are exempt from VAT, you will be required to pay Specific Business Tax (SBT) instead

Decide first

1. Decide what structure do you intend to register (Private Limited Company-Foreign or Private Limited Company-Thai Majority)
2. Do you want to register your own or buy shares from already existing companies?
3. Can you travel to Thailand?
4. Note: Shelf companies are not recognized in this jurisdiction

Documents to provide for company registration in Thailand

• Passport copies (a scan) of all individuals above, also beneficiary owner if applicable
• A Power of Attorney (POA) from (all) partners/shareholders is needed (in case of a remote company registration)
• Certified company documents (in case at least one of the shareholders is going to be a foreign company)

Information needed to get company registration in Thailand

• 3 options of your desired name for the company and a company contact email address
• Names, addresses and emails of all shareholders and board members
• Short description of your companies’ activity

Remote incorporation

• Remote incorporation is possible since Thailand already allowed the use of e-signature. However, there will instances, post registration that you may have to travel to Thailand

Accounting and auditing

Accounting is period is 12 months. Filing of tax returns is bi-annual

• The mid-year tax return must be filed and paid within two months from the first six months of the accounting period and the year-end tax within 150 days from the closing of the accounting period
• Books must be maintained according to relevant accounting procedures required under the Civil and Commercial Code. It may be stated in other language other than Thai, but a Thai translation must be attached
• Financial statements which must be audited by a certified auditor must also be filed annually with the Department of Business Development (DBD)

Residential requirements

What are the residential requirements in Thailand?

• A limited company may be owned wholly by foreigners, hence, there is no residency requirement for this
• However, for business activities reserved for Thai nationals, 51% of it must be owned by Thai nationals and only 49% is available for foreign subscriptions

LegalBison offers help with all of the above requirements. We assist and are local on ground. Speak now for free with one of our consultants to get your business started.