You can establish a business in Thailand as Sole Proprietorship, Limited and Unlimited Partnership, Private Limited Company, and Public Limited Company. The owner of Sole Proprietorship has unlimited responsibility for all the liabilities of the business. Limited Company limits all the liabilities of the shareholders to the unpaid amount of the shares subscribed by them. In most cases, Thai Limited Company is the most popular structure and ideally the first step in setting up a new business in Thailand.
You can set up a limited company in Thailand with only a few thousand Baht; however, the average declared capital is 1 Million Baht.
The structure of a Thai company has to consist of 1 or more directors and a minimum of 3 shareholders which can either be Thai or foreigner. In Thai Limited Company, Thai nationals must hold the majority shareholdings. This means that foreign ownership of the company cannot be more than 49%.
Foreigners can hold 100% ownership of businesses in non-restricted categories, such as exporting businesses and certain types of manufacturing businesses. Other methods to get 100% non-Thai control are through application for an alien business license, Board of Investment (BOI) Promotion, or registration through the Treaty of Amity for Americans.
Starting a new business in Thailand may become complicated due to language barriers. It may also take several days to weeks to complete the entire process. As all the legal documents are in Thai, completing these forms without the knowledge of its contents as well as the Thailand Law can lead to serious complications and other problems that may affect you and your business. That is why it is essential to look for trusted lawyers and advisors with legal qualifications and practical experiences.
Magna Carta lawyers have the legal qualifications and practical experience to help you with your company registration. We can advise you in all aspects of the Thailand Business Laws that will affect you and your business. Our professional advisers will give you an extensive guide on company structure, whether you are setting up your company for trading purposes or property purchase.