Thanks to its strategic position in Southeast Asia, Thailand serves as a gateway to other destinations. And thanks to its year-round tropical weather and beautiful beaches, Thailand has long been recognized as an attractive place to live. When adding up location and lifestyle, thoughts turn to earn a living in paradise. Thailand becomes a great destination to set up a company for business purposes. The Foreign Business Act of Thailand offers a wide variety of business structures, some of which are very suitable for foreigners wanting to do business in Thailand. Corporate Structures in Thailand.
Thailand offers excellent business potential to those willing to start a business in Thailand. One of the most common questions we get asked is; what type of business should I create? The answer is to start a business you feel you have the most experience in. Then make a plan and talk to a business consultant. Below you will find some basic information on the various business structures available. Thai Limited Company.
The most common corporate structure used when setting up a company in Thailand is a Thai Limited Company. There are many reasons why it is the most popular corporate structure used and basically, it boils down to because it supports a wide variety of business types. A Thai Limited Company is relatively easy to set up and it can be registered rather quickly.
Foreign Companies wishing to operate in Thailand should consider setting up a Branch Office. If they qualify, they would be allowed to have 100% foreign ownership. A Branch Office will be governed by the Foreign Business Act B.E. 2542 (FBA). When approved, they would be granted a Foreign Business License (FBL).
A Representative Office allows foreign investors the opportunity to evaluate potential market opportunities in Thailand without the need to establish a subsidiary in Thailand. The services a Representative Office can provide are limited. The foreign head office must completely finance the entire operation of the Representative Office.
The Board of Investment (BOI)’s role in Thailand is to help investors open businesses in Thailand while providing them with benefits, including tax exemptions (0% Corporate Income Tax for up to 13 years for some business types), 100% foreign ownership, as well as work permits and visa help for qualified individuals. Setting up a BOI company is a complex and time-consuming process. Some investors will find this corporate setup worthy of their efforts.
The Treaty of Amity gives special rights and benefits to American citizens and corporations. Specifically, it allows Americans to open an Amity Treaty Company in Thailand and own 100% of the shares of the company. There are some limitations and restrictions as to what activities an Amity Treaty Company can engage in.
One of the most frequently asked questions we are asked is whether a Foreigner can own 100% of a company in Thailand. The Foreign Business Act does allow for foreigners to register and operate a 100% Foreign-Owned Company. The process can take anywhere from 3 to 6 months to get approval and will require the company to obtain a Foreign Business License (FBL). The 100% Foreign-Owned Company may also be restricted in what activities it can engage in.
For setting up a company in Thailand, as Professional Corporate Services, our professional business consultants can listen to your idea(s) and recommend the right corporate structure based solely on your needs. We would explain the process in detail so that you understand from the get-go what you are about to get yourself into. Then using our highly trained staff to execute the work within a reasonable timeframe and at a fraction of the cost, other firms charge.
Contact us for more information or to consult with a professional at https://www.ratchadalawfirm.com/ about setting up a company in Thailand. Your first consolation is totally FREE. We are looking forward to serving your best interest.
Obtaining an Foreign Business License in Thailand usually takes 60 days from the date the application is submitted