To register a company in Thailand, the following steps, regarding incorporation, outline the process.
Step 1: Book a company name to avoid having the same name as another company in Thailand.
Step 2: Prepare the registration paperwork, including the notes for the shareholder’s meeting. Proof of payment for share capital must be submitted as well.
Step 3: Register the company at the DBD. You can also refer to the DBD website. Again, you should have a lawyer help you to make sure you comply with Thailand’s laws for registration. Not doing so can get you into trouble professionally.
What Happens After the Registration
After you register your business, you will need to consult with your lawyer about VAT registration and obtaining licenses for your business. Obtaining a license is dependent on your business type and size. You will need to obtain a VAT license once your business reaches over 1.8 million baht in yearly earnings. You have 30 days, or a month to act.
Again, the license or licenses you acquire depends on your business type. For instance, if you own a restaurant, you will need to get a license for liquor and music. Maybe you own a logistics or shipping company. If so, you will need to obtain a license for importing and exporting products.
You should always check with a lawyer when it comes to registering a business and obtaining the proper permits or licenses. Make sure you comply with Thai law so you can retain good standing in the business community.
Also, consulting with a lawyer will help you plan your budget for setting up your company. You will need to pay from 600 baht to 2,000 baht for a license alone. That is why you should familiarize yourself with all the steps needed for registration and the set-up of your business.
Finding a Space from Which to Work
After you register your business, you will need to locate office space in most instances. You have two choices in this respect – you can work from a traditional office location or a serviced office. You may want to choose the serviced office space if you are just starting out, as you do not have to worry about buying office furniture or setting up the equipment. Just sign an agreement and start working on your laptop that day.
Opening a Business Bank Account
You cannot do business after you register your company without signing up for a business bank account. If you are a foreigner, you may need to obtain a referral to open a bank account. Again, that is why the services of an attorney can be beneficial.
If you want to apply for a company credit card, you usually cannot do so unless you have been operating as a business for a couple of years. If you want to secure credit earlier, you need to sign up for an unsecured card or deposit the whole credit amount as collateral.
As you can see establishing a business and registering it can become involved. Talk to an attorney to get the needed legal help and to make sure you do not run into any legal difficulties.
If you need the assistance of a corporate lawyer in Thailand, please contact us.