Setting Up a Business in Thailand

Many foreigners nowadays wish to start up or expand their business in Thailand. Starting a business in a foreign country can be both a rewarding opportunity and a daunting task. Thailand is known as the Land of Smiles and the government extends this hospitality into the business registration process. There are One Stop Service Centers which provide business start ups with a one location to obtain all the necessary information to incorporating a new business in Thailand. The Thai government has made great improvement over the last few years to speed up the business registration process in Thailand. Now a Thai Company can be registered in one business day after receiving a confirmation of the name reservation of the Thai limited company.

New businesses both big and small can set up in Thailand with ease. For a small new Thai business you can easily register your new Thai limited company with a minimum capitalization of 2 million baht. The Thai government requires that at least 25 percent of the starting capitalization be paid up on the date of the meeting for company registration. This start up capital can be used immediately for office rental, buying computers, purchasing inventory and other business expenses. As for big businesses, Thai government has their Board of Investment (BOI) program for offering special sectors many benefits for choosing Thailand as their start up location. This can include small software developers with just a few people to large manufacturing operation. The incentives include tax holidays, reduce tax duties on imported machines, fast processing of work permits and visas for foreign staff, and as well as tax free zones for importing raw materials which will be used and exported as a finished product (for some designated sectors).

The ownership percentage of your Thai company depends on the type of business registration you process with the Thai government. The most common type of registration is the Thai Limited Company with 2 million baht required initial capitalization. A foreigner can only hold up to 49 percent of the shares in this type of structure. Thus, the Thai partners must have 51 percent. The BOI company structure offers the ability of 100 percent ownership in certain business categories. It is recommended that you contact a Thai company incorporation lawyer to assist you in the planning of your new business in Thailand.