COMPANY REGISTRATION PATTAYA

Pattaya is not only known for being a favorite tourist destination in Thailand. Is buzzing with big and small businesses set up by foreigners who decide to stay there long-term. As the largest island in the country, Phuket is well-developed with business infrastructure and potential opportunities that attract countless foreign investors. On top of that, in order to boost the economy, the Thai government has been developing intensive campaigns to entice and facilitate foreign investment.

To conduct businesses in Pattaya or elsewhere in Thailand, it requires proper company registration. This may not be a simple task and the foreigner may struggle with the local regulations, but with the help of a legal advisor based in Pattaya who is well-versed in Thai law and the local procedures, the first step of your business venture in Pattaya will be promising.

Doing Business in Thailand as a Foreigner

Before we explain the company registration process, foreigners who are interested in setting up a company in Thailand should be aware of the restrictions regarding foreign ownership and business activities. Though the Thai government encourages foreign investments, there are restrictions to the categories of businesses foreigners can own and perform in the kingdom.

The non-restricted businesses can be wholly owned by foreigners, but the Foreign Business License must be obtained, or the foreign owners can apply to be promoted under Thailand’s Board of Investment. However, these require insurmountable effort and they are almost impractical for small businesses to achieve. As a result, most foreign investors decide to incorporate a Thai entity where foreigners can still own a certain percentage of the company.

Incorporation of a Company

To set up a company, it is important to explore different options and decide which type of formation best suits the foreign investor’s current conditions as well as the future business plan. In Thailand, there are generally types of business formation.

• Partnerships (limited and ordinary)
• Limited companies (private and public)

Among these types of formation, it is the most common for foreign investors to form a limited company. This is because, for a limited company, the shareholders’ liabilities are limited to the unpaid amount on the shares they possess. This type of formation requires a minimum of three shareholders or promoters where foreigners are allowed to own a maximum of 49% of the shares while the remaining 51% shall be owned by Thai nationals.

Here are the typical documents and information required for company registration:

• Company name
• Location of head office
• Company’s objectives
• Number and value of shares to be registered
• Names, addresses, and occupation of the promoters and shareholders and the number of shares owned by them
• Names, addresses, age, and nationality of the 2 witnesses,
• Names, addresses, age, and the authorities of the Directors
• Company’s regulations (if any)

Setting up and running a company in Thailand can be complex and frustrating. It’s a different culture, a different language and a very different way of getting things done! Many have started this process but have given up for these reasons. With our staff at your side we remove the stress factor making the process straight forward and simple.

We provide a start-up consultancy service with operational support services to entrepreneurs and corporations who want to establish their business in Thailand. We can set up your company, take care of legal matters, deal with your accounting, provide you and assist you in the acquisition of your business visa, work permit and permanent residence.

Our Company Administration Services can help you with increasing company capital, changing company director, closing a company, add a new branch of the company, adding company objective, changing company shareholders and changing company name.

Company Registration Options

When setting-up a business in Thailand, you have the choice over what type of organization to establish. These are the company registration options in Thailand

1.Thai partnership 

2.Thai representative office 

3.Thai limited company

For a private Thai limited company, a minimum of seven shareholders or promoters is required to register the company. Except for some business activities where 51% of the company should be owned by Thai nationals, foreign nationals can own a private limited company 100%. Where ownership is divided between Thai nationals and foreigners, only a maximum of 49% shall be allowed to be owned by the investing foreigners.

Thai Limited Company is the most popular business structure in Thailand due to the simple set-up process and the protection it offers to its shareholders. The below infographic outlines the step by step company registration process as well as it provides an overview of the general requirements.

Company Name Registration

The name you chose for your company must not be identical to/or resemble the name of any pre-existing registered partnership or company. Certain terms are also prohibited from use in company names. For example, you may not use the term “investment” in your company name but the term “capital” is allowed. The company name must end with the word “Limited”.

It is recommended that you reserve three names ranked by priority to maximize the chances of success. Your company name will be registered in Thai language, even if the name of your company is in English. Do not propose a name that is lengthy or difficult for non-English speakers. Remember that your clients will have to write it, so the more complicated the name then the more mistakes your clients will make when drafting checks, etc.

The name of your business can be different from your company name. You can also use the same name for several companies proved that you accompany that name with a different figurative word. For example ABC Trading Ltd, ABC Holdings Ltd, ABC Capital Ltd, etc. Once approved, the corporate name is only valid for thirty days and no extension is permitted. This means that Step Two of the company registration process must be completed within this period of time.

Tax Registration

Every company in Thailand must register for corporate tax and usually VAT. If your Company generates below a specified income, then it is not required for you to file for or pay VAT – this we can advise you upon. The Thai taxation system is fairly simple and with the right guidance from us it is fairly trouble free.

Taxable companies should obtain a tax ID card and number for the company from the Revenue Department within 60 days of incorporation. The same tax number will appear on the VAT certificate and on the taxpayer ID card, which are normally obtained on the same date when the application is filed. The VAT certificate, however, will be mailed separately to the company’s registered address.