Establishing Your Business in Thailand
Posted On March 21, 2019
The outlook for a foreign business entity to conduct business in Thailand is not really bleak though as there are ways to address such restrictions and to give emphasis, these ways are set by the Thai government through a law or a treaty without the possibility of entertaining thoughts of circumventing Thai laws.
Foreign Business License
The Foreign Business License provides a way for a majority foreign-owned (more than 49% foreign ownership) business to be registered and conduct business in Thailand.
Obtaining an FBL is no easy feat that is why a number of foreign business entities choose to hire competent corporate lawyers in Thailand.
Board of Investment Promotion
A company which is majority foreign-owned can still conduct business in Thailand as long as the type of business is promoted by the Board of Investment and is among the lists of businesses allowed to foreigners. A foreign business can only be promoted by the BOI if its line of industry is among the industries promoted by the government investment promotion entity.
If the business entity is American-owned, the Amity Treaty is another option for you to setup your business in Thailand. All you have to do is to apply for and be granted with a certification by the Ministry of Commerce although such application is still subject to a procedure for verification.
Thai Limited Company
A Thai Limited Companies, either a Private Limited Company or a Public Limited Company, is among the popular types of business structure with a certain percentage of foreign ownership. Of the two, the Private Limited Company is more common therefore emphasis will be given on such type.
This structure requires at least three (3) promoters and the foreign-owned company shares must not go beyond 49% and the remaining majority share should be Thai-owned although the foreign-shareholders may have more voting rights over their Thai counterparts.
<>Other requirements that will make a Private Limited Company eligible for registration are the following.
- Memorandum of Association
- Convene a Statutory Meeting
- At least seven (7) shareholders with majority of which are made-up of Thai nationals
- Registration fee of 5,500 THB per million of THB of Capital