How to open a legal entity in Thailand?
In order to legally conduct business in Thailand, you need to open a company registered in the country. On Legislation of the Kingdom of Thailand, if a company offers to conduct business for profit or for the purchase of her property, land and other property, 51 percent of the shares of such companies must be owned by citizens of Thailand, and only 49 percent of the shares owned by foreigners. In some cases, the percentage of foreign participation may be even lower (eg in case of purchase of a boat or yacht by a company for commercial use foreign participation must not exceed 30% of the total shares).
Often nominal Thai co-founders could be provided by law firms which are engaged in the registration of the legal entity. There are several legitimate ways to protect your company from the uncoordinated actions of Thai co-founders. Legal companies will tell you about them on the consultation and you will be able to choose the most suitable for you way.
To open a company in Thailand you need a legal address, you can rent an office or use an address of your house, which you are renting or own. The legal address can also be purchased. You will need to come up with a unique name of the company. The lawyer will check the availability of the chosen name in the register. If it's not occupied by another company he will register the company with a chosen name, otherwise, you will need to come up with another one.
You must select the type of activity of the company include all possible activities that you plan to do.
The authorized capital of the company must be at least 2 000 000 Baht. You do not necessarily provide this amount by cash. This issue could help to solve the law firm to which you refer.
To open a new company takes around 7 days.
After new company was opened you have to receive all necessary certificates and licenses if they are required by the activity of the company.
To be a full-fledged director of the company you need business visa and work-permit. If you want to hire foreign employees to work they will need a work-permit and business visa too for legal employment.
According to Thai law to register a work-permit, the capitalization of the company should be 2 000 000 Baht for each work-permit. For each subsequent work-permit capitalization of the company must be increased for 2 million baht more. That is why you have to decide how many work-permits do you need before you open a company. To increase the capitalization later will be more difficult than at the start.
All care of the paperwork to obtain a work permit will take over chosen law firm. You will need to provide them with all the information and documents that they will request.
Usually, the law firm has an accountant who serves other companies for a reasonably fee of $ 2,000 - 5,000 baht per month. Hiring your own accountant makes sense with a large amount of investment or a large staff of employees.
Taxation in Thailand is on an increasing scale. The more you earn a net profit, the more you pay taxes:
|< 1 000 000 Бат||15%|
|< 2 000 000 Бат||25%|
|>3 000 001 Бат||30%|
In Thailand has a simplified taxation system, it is applicable to companies with authorized capital of not more than 5,000,000 Baht.
The value added tax in Thailand (VAT) is 7%. It's should be paid by any legal entity or partnership with an annual turnover of over 1,800,000 Baht. In cases of export of goods, there is the possibility of a refund of VAT.
A full consultation on taxation in the Kingdom of Thailand you can get from our lawyers.