Thailand company set up is popular with international entrepreneurs wishing to conduct business in Thailand. Although Thailand is not an efficient international trading jurisdiction due to its lack of economic freedom (it ranks just 66th in the 2010 Index of Economic Freedom by the US-based Heritage Foundation) and high trade tariffs, a Thai company is sometimes a preferred entity when government tenders require only Thai companies to bid. The following is an overview of Thailand company set up requirements and procedures:

Most foreign investors choose a professional services firm to handle Thailand company set up formalities. This firm will i) liaise with government departments to obtain foreign investment approval ii) complete application forms on behalf of the investor iii) register with the tax authorities and offer continued tax support including assistance with annual tax returns and audits, if required.

To further stimulate investment and increase Thailand company set up, in early 2008, the Thai government announced a series of tax cuts for small and medium-sized enterprises, firms listed on the stock exchange, and on property transactions to improve private investment prospects.

In accordance with the Section 1097 of the Thai Civil and Commercial Code, a Thai LLC is required to have a minimum of seven shareholders, who must be individuals, not companies. Thais must hold 51% of the shares, except if the company is officially promoted by the BoI, in which case 100% foreign ownership is possible. After completion of Thailand company set up, all companies must keep a register of shareholders, which is available for public viewing.

There is no minimum capital requirement when undertaking Thailand company set up. However, to obtain a work permit for expatriate staff a Thai LLC requires approximately 2 million baht (US$61,400) in registered capital per work permit.

In accordance with the Thai Civil and Commercial Code, a Thai LLC is required to maintain an office in premises which it physically owns or rents.

In accordance with the Thai Alien Business Law, a Thai LLC requires a minimum of one director, who can be of any nationality but who must be Thai-resident.

For more information on Thailand company set up, purchase our Asia Business Setup book. Alternatively, contact email@healyconsultants.com or call us in Singapore (+65) 6735 0120.

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