How to get license for e-commerce business in Thailand?

 

If your business in Thailand involves selling goods online or via e-commerce platforms, this situation necessitates your requirement to apply for an e-commerce license in Thailand. In the digital age, many businesses harness the internet’s potential to expand their reach and boost sales. E-commerce offers a global marketplace, enabling enterprises to engage with a vast network of customers worldwide.

Moreover, this business model often requires lower investment levels compared to traditional brick-and-mortar establishments. However, it’s important to note that online businesses operating in Thailand must obtain an e-commerce license to ensure their legal compliance.

The Thai Electronics Transaction Act governs the application process for e-commerce licenses in Thailand. Leading corporate law firms in Thailand with licensing capabilities are well aware of this act, but, you should also have an idea of it. Let us share the same with you!

Thai Electronics Transaction Act: Comprehensive Overview

The Electronic Transactions Act (ETA) governs civil and commercial electronic transactions in Thailand. It aims to encourage the use of electronic technology by minimizing uncertainty about the legal validity of electronic information. It also emphasizes that certain legal requirements through physical paperwork should meet the electronic process as well.

The ETA is based on the premise that data messages when specific conditions are met, have the same legal standing as other written documents. To clarify, data messages encompass all electronically generated, sent, received, stored, or processed information. Examples of data messages include e-mails, telegrams, telexes, and faxes.

In addition to the aforementioned, the Electronic Transactions Act (ETA) sets licensing and registration requirements for electronic transactions and provides a general framework for such transactions involving the public sector. The Electronic Transactions Commission promotes and develops electronic transactions and monitors the operations of businesses providing services related to electronic transactions. These services require prior notification and registration to obtain the necessary license.

Entrepreneurs selling products online should also be aware of the provisions of the ETA, as Thailand’s e-commerce industry is growing rapidly and Thai consumers are increasingly purchasing products online.

Documents Required to Obtain E-commerce Business in Thailand

To acquire an e-commerce license in Thailand, the applicant must provide the following documents at the District Office of the province of the main office (if outside of Bangkok) or at the Bangkok Metropolitan Administration:

1. Application for e-commerce registration (Tor. Por. form with the attachment), including details of your website.
2. ID card or passport of the applicant:
   • For an individual: ID card or passport
   • For a juristic person: ID card or passport of the authorized director and the company affidavit
3. Power of attorney (if applicable)
4. Clarification letter (in the event of late registration)

Information Required to Obtain E-commerce License in Thailand

To apply for an e-commerce license in Thailand, the website must be operational, and the website owner must provide the following details:

• Website name.
• Nature of goods or services sold.
• Start date of website operation (application must be made within 30 days).
• Payment methods accepted.
• Domain name registration or certification document from the service provider.
• Map showing the business location.

In case the commercial operator doesn’t have a landlord, the following additional documents are required:

• Letter of consent to use the premises or a rental contract.
• Copy of the location owner’s ID card and house registration or documents showing ownership of the property.

When and how to apply for an e-commerce license in Thailand?

Online business owners must obtain an e-commerce license within 30 days of starting operations. To do so, an application form must be submitted either to the District Office where the head office is situated or to the Bangkok Metropolitan Administration.

If your head office is outside Bangkok, you have to apply to the Provincial Administration Organization. 

In case the process seems daunting and you are unable to pave through the correct path or channels, let us help you out. Our team of experienced Thai corporate law professionals and licensing experts will surely take you out of the dilemma. Email us at officer@konradlegal.com.

Process of Changing Director of a Company in Thailand

 

The leadership structure of companies can evolve as they grow and scale their operations. The addition or removal of a director may become essential during this process. There can be various other reasons that may seek this change. There is a specific procedure to change or remove a company director in Thailand.

This article provides a detailed explanation of this process and the necessary steps to be taken.

General Conditions to Change the Director of a Company

Several factors necessitate the change of directors in a Thai Limited Company, including:

• Resignation or departure of a director
• Death of a director
• Bankruptcy or mental incompetence of a director
• Appointment of a new director
• Removal of a director from their position
• Retirement of a director
• Rotation of a director during the Annual General Meeting

Eligibility to be a Company Director in Thailand

Before you change or remove a company director, you should have someone who can take his/her responsibility as a successor. To execute this process, the first information that you must have is the candidature eligibility. To serve as a director in Thailand, individuals must meet specific qualifications:

• They must be at least twenty-one years old so that they can sign the application and its supporting documentation.
• They must possess mental competence and not be declared bankrupt.
• Residency status is not a requirement; both residents and non-residents are eligible.

What to do before Changing Company Director in Thailand?

Once you have checked and verified that your candidate to be the new director of the company matches the eligibility pointers, you will have to proceed with the following steps. 

In case of a Director’s departure, the company must convene either a Board of Directors meeting or a Shareholders’ meeting. The agenda depends on the company’s circumstances and any stipulations outlined in the Thai Commercial Code or the Articles of Association.

According to the Thai Commercial Code, during each annual general meeting of shareholders, one-third of the directors are required to resign rotationally. However, directors who resign can be re-appointed to their positions. Additionally, new replacement directors can be appointed during this shareholders’ meeting.

During a shareholders’ meeting, the shareholders have the authority to remove a director from their position before the conclusion of their term. Only a resolution approved at the shareholders’ meeting can result in the director’s removal from their position.

In the absence of specific mention in the Articles of Association, granting the Board of Directors the authority to resolve changes in a director’s authority, a resolution must be passed during a Shareholders’ meeting. This resolution requires the approval of a majority of the shareholders’ votes to be deemed valid and effective.

Process to Change Company Director in Thailand

Convene A Board of Directors Meeting

The Board of Directors is responsible for convening a shareholders’ meeting to pass a resolution to alter the company’s director or the director’s authority.

If the company’s Articles of Association state that the Board of Directors has the authority to modify the director’s authority, no shareholder meeting resolution is required for such a change.

The notice to convene a Board of Directors meeting shall adhere to the company’s Articles of Association rather than any specific legal requirements.

Organize A Shareholders’ Meeting

Under the corporate guidelines, companies must provide adequate notice for shareholders’ meetings. This notice must be published in a local newspaper no more than seven days before the scheduled meeting date.

Additionally, registered mail is required to notify shareholders listed in the shareholder registry. The notice will be deemed received upon sending the registered post to the shareholder’s listed address. This process must be completed seven days before the meeting.

Shareholders’ meetings can only be held if at least one-quarter of the company’s shareholders are present.

Unless otherwise specified in the company’s Articles of Association, notice to call for the shareholders’ meeting shall be sent to the shareholders at least seven days before the meeting.

Complete Legalities with the Departing Director

Upon approval of the director change by the shareholders and/or the Board of Directors meeting, the necessary forms will be prepared. The departing director and the authorized director(s) of the company must sign these documents. It’s important to note that the director must be physically present in Thailand during the signing process.

Update the change at the Department of Business Development

Upon completing and signing the forms, they need to be filed at the Department of Business Development. Within 24 hours of submission, the company must update its company affidavit to reflect personnel changes.

Within 14 days of the change, the authorized ‘former’ director must submit the following documents to the Department of Business Development:

• A copy of the resolution that was passed
• Application forms for changing the director and/or the authority of the director
• Signed copies of the ID cards/passports of both the old and new directors

Documents for Changing a Company Director in Thailand

To change a director in a Thai Limited Company, the following documents are needed:

• Copies of the new and old directors’ passports and addresses
• Approval letters from government agencies for strictly regulated businesses
• A death certificate in case of a deceased director
• A court order in case of company rehabilitation

Additional Information:

In Thailand, according to the law, directors who intend to resign from their positions must submit a formal resignation letter to their company. The resignation takes effect on the date that the company receives the letter. Resigning directors have the additional option to notify the Registrar of their resignation within 14 days of stepping down.

The written resignation letter must include a declaration by the director expressing their intent to end their directorship and be signed by the director.

Through a resolution passed at a shareholders meeting, a director can be removed from their position. If the director refuses to voluntarily resign, a shareholders resolution will be necessary to remove them from their position.

The Bottom Line

A Director is one of the crucial pillars of a company. Various core and ancillary responsibilities depend solely on the decision of the departmental or managing director. Therefore, while changing a Director, you should be very cautious about maintaining the legalities properly.
In the case of a resignation, the process is smooth, but, otherwise, there can be issues to resolve which you will need the assistance of a corporate law firm in Thailand. To discuss with us about your company today, email us your concern to change company director in Thailand at officer@konradlegal.com.

What Licenses Are Needed to do Business in Thailand?

 

Rapidly evolving as the business hub of Southeast Asia, Thailand is becoming one of the most preferable destinations to attract foreign direct investment. If you are planning to register your company in Thailand, then you must go through this article. This article will guide you comprehensively on the requirements of respective licenses to do business in Thailand.

We all know that simply registering a company can never serve your purpose of operating the same. To operate you will need relevant permits and licenses. In Thailand, the regulations are pretty stringent and non-adherence can lead to severe penalties. This article will serve well as your guide to knowing about the licenses that may be mandatory for your upcoming business in Thailand.

Do You Need a Business License in Thailand?

First of all, you must know whether the type of company or business you are going to set up in Thailand needs a business license or not. To ascertain these facts, check out the following pointer:

1. Will you set up a company in Thailand or a branch or representative office of your existing business?
2. What will be the “nature of business” and in which industry will you be doing it?
3. Are you going to bring in foreign nationals to Thailand as your employees?
4. Is your business eligible for relaxation under any bilateral treaty between your nation and Thailand?
5. Have you checked about the Board of Investment Promotions in Thailand? Is your business eligible for any BOI Privileges?

Depending on your answers to the above questions, you can ascertain whether you need a business license in Thailand or not. However, it is always wise to consult with a reliable corporate law firm in Thailand to reach this decision. Remember that this is a statutory requirement and you must make an informed decision to prevent any type of penalties or fines in the future.

To make the process simpler, we have answered these questions comprehensively. This will help you have a basic understanding before you speak with any corporate lawyer in Thailand.

License Requirement based on your Business Structure in Thailand

Foreign investors can incorporate 6 types of business structures in Thailand. You should select a business structure that complies well with the nature and purpose of your business in Thailand.

For your information, almost all types of businesses in Thailand need a Foreign Business License. Foreign Investors must apply for a Foreign Business License in Thailand to start their business in Thailand as various business verticals are restricted for foreigners in Thailand.

However, if you are planning to start a representative office in Thailand, you need not apply for a Foreign Business License in Thailand. Furthermore, there are requirements based on the nature and industry of your business in Thailand that ascertain your license requirements.

Your Business Nature and Industry Finalizes Your License Requirements in Thailand

As talked about in the previous section, a Foreign Business License is mandatory for almost 99.9% foreign investors, unless, they plan to start their representative office. However, the nature and industry of your business invoke certain license requirements as follows:

Medical License

Starting a medical company in Thailand necessitates obtaining specific licenses. The type of license needed depends on the activities undertaken in the medical field.

If you plan to operate a service business like a rehabilitation center or nursing home, you must acquire a medical service business license from the Department of Health Service Support.

For medical manufacturing activities, if your factory has machinery totaling 50 or more horses or employs 50 or more people, you’ll need a Factory license from the Department of Industrial Works. If neither of these criteria is met, you should apply for a Business Establishment license from the Local Administration Organization.

Before conducting any clinical research, a Science Laboratory Capacity Certificate from the Department of Medical Science is mandatory.

Moreover, according to the Thai Drug Act Be 2510 (AD 1967), obtaining permission from the Food and Drug Administration (FDA) is essential before marketing medical equipment, pharmaceutical products, or medical food.

E-commerce License in Thailand

In Thailand, businesses that run one or more websites to sell goods or services must obtain an e-commerce license. The application can be submitted once the website is operational and requires the following details from the website owner:

• Name of the website
• Nature of goods or services sold on the website
• The date on which the website started operating (application should be made within 30 days from the start date)
• Method of payment for purchases
• Document evidencing the domain name registration or certification document from the service provider (ISP or web host)

Check out why you should start an e-commerce business in Thailand.

Licenses for Restaurants and Bars in Thailand

In Thailand, the licenses needed by a restaurant depend on the services it offers. However, some obligatory licenses are required by most restaurants.

These licenses include:

• Restaurant license: This license is a must for establishments with premises of at least 200 square meters. Thai eateries smaller than 200 square meters need a certification of notice.
• Liquor license: This license is required for restaurants serving alcoholic drinks on their premises.
• Music license: Restaurants with live music or any music playing on their premises must obtain this license.

All these licenses are granted for one year and must be renewed annually by the restaurant.

License for Financial Services Businesses in Thailand

In Thailand, companies aiming to provide financial services must secure specific licenses from the Bank of Thailand. These services include commercial banks, finance companies, credit finance companies, asset management companies, and e-payment channel services.

Furthermore, specialized financial institutions aligned with governmental policies fostering investment and economic growth within Thailand require additional authorization from the Ministry of Finance.

Import/export Licenses in Thailand

Certain import/export companies in Thailand require specific business permits based on the category of goods being traded. Specialized licenses are mandatory for importing controlled goods like food, medicines, and cosmetics from Thailand’s Food and Drugs Administration.

Additionally, a permit from the National Broadcasting Department is necessary for importing electronic devices like mobile phones. Finally, a customs paperless license from Thailand’s customs department is necessary for import/export companies to facilitate the movement of goods under their name.

License for Travel Agencies in Thailand

In Thailand, running a travel agency necessitates a Tourism Authority of Thailand-issued Tourism license. Without this license, there are prohibitions on arranging and selling tours and packages, booking accommodations, and distributing travel tickets.

The license is divided into three categories: inbound tourism (serving foreign visitors to Thailand), outbound tourism (catering to Thai travelers going abroad), and domestic tourism (serving Thai travelers within Thailand).

A majority of Thai ownership is necessary for travel agencies in Thailand, and a local director’s signature is mandatory to obtain the tourism license. Notably, there may be restrictions to the local director’s signing authority to matters directly related to the tourism license. This structure allows foreign shareholders to maintain control over other aspects of the business’s activities.

Education Business License in Thailand

When registering an education business in Thailand, a license and approval from the Ministry of Education or the Department of Social Welfare are essential prerequisites. The type of education offered by the business determines which authority must grant the approval.

Before starting an education business, you need to consider several key factors, such as the business premises and the legal structure of the company. Any deficiencies in addressing these elements correctly will lead to the rejection of the application for the required license.

Other Factors Confirming Requirements of License to do Businesses in Thailand

To bring in Foreign Workers to work for business in Thailand

Every foreign worker you bring into Thailand must hold a valid work permit to work for your company. It is your responsibility to facilitate the process of work permit issuance for your foreign employees. In the process, a valid commercial and business license is one of the mandatory documents for the same.  

Bilateral Trade Treaty between Thailand and native nation of Investor

The need for a foreign business license is to permit foreign investors to undertake business activities that are normally only for Thais. However, certain bilateral trade treaties expand the scope of availability of business verticals in Thailand to the respective natives. Therefore, it is always advisable to check if your nation holds a bilateral treaty with Thailand and check the permitted business categories.

Eligibility to obtain Board of Investment Promotion in Thailand

Although a Board of Investment promotion never exempts the requirements to obtain any relevant license, yet, there are discounts on licensing fees. Therefore, if your business becomes eligible for BOI Promotion in Thailand, check if you are getting these benefits or not. This will reduce your setup cost significantly.
Business licensing in Thailand covers a wide range of considerations. You must avail the consultation of some reputed corporate lawyer or law firm in Thailand. To set up an appointment with us, email us your license requirements at officer@konradlegal.com.

How to Start a Medical Business in Thailand?

Thailand, a rapidly developing nation with a burgeoning healthcare industry, holds immense potential for entrepreneurial enthusiasts seeking to explore business ventures in this domain. The country’s expanding population and escalating demand for high-quality medical services create an alluring opportunity for entrepreneurs to establish healthcare enterprises. However, starting a medical business venture in Thailand demands meticulous planning and execution due to its complexity. This concise guide aims to provide valuable insights and facilitate the journey of aspiring entrepreneurs by addressing the crucial question – “How to start a medical business in Thailand?”

The Aging Society of Thailand needs special Medical Facilities!

Thailand’s healthcare industry is expanding, but its aging population is also growing. This trend is not unique to Thailand as it happens in many countries. Consequently, the demand for healthcare services in Thailand will increase. Thailand’s aging population is projected to surpass that of Europe and the US by 2045. Accordingly, the need for healthcare services will continue to rise.

The Healthcare Sector of Thailand is Booming!

Thailand has made significant strides in enhancing access to medical care and public healthcare. Substantial investments in time and resources have facilitated easier utilization of healthcare services. Government expenditure on healthcare has experienced a rapid increase, growing from below 50% in 1995 to approximately 80% in the present. Furthermore, Thailand implemented a universal healthcare system in 2002, which has proven to be highly successful. As an outcome, over 99% of Thai citizens now benefit from public healthcare access.

The extensive network of healthcare facilities in Thailand comprises over 1,000 government hospitals and 300 private hospitals, offering a diverse range of services and treatments. This extensive network strongly suggests that the public healthcare system in Thailand effectively serves the needs of the majority, if not the entirety, of the population.

Comprehensive Framework to Start Medical Business in Thailand

To successfully start a company in Thailand, it is advisable to follow a systematic step-by-step process. Begin by selecting the most appropriate company structure and reserving a desired name through the Department of Business Development. Proceed to create the articles of association and convene a shareholders’ meeting. Subsequently, register the company and acquire a tax identification number. For foreign directors or employees, it is essential to obtain the necessary visas and work permits. By adhering to this organized approach, you can ensure a smooth and efficient company formation process in Thailand.

Although Thai laws impose restrictions on foreign ownership, medical companies can overcome these challenges in two ways:

Option 1: Obtaining a Foreign Business License (FBL)

To obtain an FBL, medical companies must secure approval from the Foreign Business Committee and the General Director of the Department of Commercial Registration.

Option 2: Seeking Approval from the Thailand Board of Investment (BOI)

Medical companies can also seek approval from the BOI, which offers various incentives and benefits to foreign investors.

By following these guidelines and exploring these options, medical companies can successfully establish their presence in Thailand and navigate the regulatory landscape.

BOI Promotion to Start Medical Business in Thailand: Check Eligibility!

To obtain Board of Investment (BOI) approval, ensure that your intended medical activity falls within the seven eligible categories:

If your proposed activity qualifies, submit the BOI license application online. BOI officers will conduct an initial application evaluation. If your application receives preliminary acceptance, company representatives or directors must attend a meeting with a BOI expert committee within ten (10) days of the application to deliver an oral presentation.

The project will undergo a subsequent evaluation 90 days after the meeting to determine whether the BOI certificate will be granted.

Why is BOI Certification Helpful for Medical Business in Thailand?

The Board of Investment (BOI) certification in Thailand offers substantial benefits that extend beyond tax incentives:

Tax Benefits

• BOI Certification exempts companies from paying corporate income tax for a period spanning 3 to 8 years, contingent on the nature of their business activities.
• Provision of availing a 50% reduction in corporate income tax for a maximum duration of 5 years.
• Waiver on Import taxes for machinery and raw materials employed necessary for research and development projects.

Additional Advantages

• 100% Foreign ownership of company shares is permitted.
• Foreign investors are encouraged to explore investment opportunities.
• Provision to bring in foreign technicians and experts to contribute their expertise in Thailand.
• Facilitation of international financial transactions owing to the provision of unlimited foreign remittance.
• Ownership of land is possible, subject to project approval, enabling long-term investment and development.

Basic Incentive for Eligible Medical Businesses in Thailand

The Board of Investment (BOI) provides numerous benefits to support and attract investment projects that align with the government’s development goals. These incentives, which were previously mentioned, are designed to encourage investment in Thailand.

We take it to be our responsibility to update our audience with the benefits and announcements of BOI Thailand. Subscribe to BOI Thailand Updates Newsletter to get the information straight to your inbox!

Necessary Licenses to Start Medical Business in Thailand

To start a medical business in Thailand, you may require various licenses, depending on the type of business you operate. Here’s an overview of the different licenses and the respective issuing authorities:

1. Medical Service Business License

• Applicable to service-based businesses such as rehabilitation centers and nursing homes.
• Issued by the Department of Health Service Support.

2. Factory License or Business Establishment License

• Required if your business involves manufacturing and meets certain criteria, such as having 50 or more machines or employing 50 or more people.
• For factories located in an industrial area, you’ll also need Factory permission and incentives from the Industrial Estate Authority of Thailand.
• If your business does not meet the criteria for a factory license, you can apply for a Business Establishment License from the Local Administration Organization.

3. Science Laboratory Capacity Certificate

• Necessary for conducting clinical research activities.
• Issued by the Department of Medical Science.

4. Permission from the Food and Drug Administration (FDA)

• Required before marketing medical equipment, pharmaceutical products, or medical food.
• Granted under the Thai Drug Act of 1967 (BE 2510).

These licenses are crucial to ensure compliance with the regulations and legal requirements for operating a medical business in Thailand.

Immigration Solutions to Start Medical Business in Thailand

The Foreign Working Act of 2008 mandates that foreign nationals seeking employment in Thailand must secure a work permit in advance, outlining the activities they are permitted or prohibited from engaging in. You should consult a leading immigration firm to obtain a work permit in Thailand.

However, the introduction of the SMART visa category has simplified the process of obtaining a work visa. This visa, approved by the Thai government on February 1, 2018, is designed to attract highly skilled foreign professionals and investors to work or invest in Thailand. It is available across various industries, including automotive, tourism, agriculture, robotics, and others.

Four categories of foreign nationals are eligible to apply for the SMART visa: experts, investors, executive management personnel, and startups. This visa offers numerous benefits and privileges, including a validity period of up to four years, exemption from obtaining a separate work permit, reduced reporting requirements to the Thai Immigration Service (only once per year), and the possibility of family reunification for the visa holder’s spouse and children.

The Bottomline

Thailand’s dynamic healthcare industry, ripe for growth and innovation, welcomes ambitious entrepreneurs like you. By skillfully navigating the efficient registration process, capitalizing on lucrative BOI incentives, adhering to licensing requirements, and safeguarding your intellectual property, you can forge a path to success in this flourishing sector.

At Konrad Legal, our expertise lies in assisting businesses in Thailand through their company incorporation and registration journeys. Reach out to us to discover how our tailored solutions empower your seamless entry into the thriving Thai medical and healthcare market. Email us at officer@konradlegal.com and seize the opportunity and register your Thai company today and start your medical business in Thailand right away!

How to Register a Business in Thailand?

 

As a foreigner, if you are planning to register a company in Thailand, you must have professional guidance before proceeding. It should start from the basic regulations of company registration in Thailand. Henceforth, you must know that various legal and authoritative regulations vary significantly for foreigners starting a business in Thailand. 

You may have read various articles that suggest the information that you must have to register your company in Thailand. But in this article, we will be serving something very different. It is because this article does not originate from theoretical knowledge and concepts. But, it outlines our practical experience in the domain for more than a decade.

For your better understanding, we have given this article a FAQ (Frequently Asked Questions) form. Simply scroll to find the answers to the questions to help you make your decision to register your company in Thailand.

How to decide the type of company I should register in Thailand?

The process of company registration in Thailand stringently depends on various factors. Primary determinants are the type of business you want to do, and your investment potential. Most importantly, the industry you want to start your business in is one of the major determinants. This is because various government agencies offer privileges and hold schemes for businesses in their specific or target industries.

For example, suppose you plan to start a manufacturing or industrial company. In this case, you can avail benefits from the Industrial Estate Authority of Thailand (IEAT). Additionally, privileges from the Board of Investment (BOI) of Thailand are active for businesses in more than 20 industries. The benefits from such organizations cover a great range of tax and non-tax benefits. Such benefits ease the registration and continuity of businesses in Thailand both for Thai and foreign investors.

If you are a Thai business aspirant, starting small as a sole proprietorship firm is always wise. However, if your business model, investment capacity, and liability patterns compel you to a higher level, you may go for a Limited Liability Company or LLC structure. 

For foreign investors, there are various types of business structures available. However, in most cases, you must have a Thai partner as one of the co-owners of the company. If you already own a company and want its presence in Thailand, you can go for a Branch or Representative office. To start from scratch, opt for a private or public limited company in Thailand. Note that you will need Thai partners in both of these cases. But, if your business gets eligible for IEAT or BOI Thailand promotions, this mandate fades away. A Foreign Business License in Thailand also facilitates a foreign investor to hold the majority of shares.

What are the restrictions for foreigners in registering a company in Thailand?

The primary restriction for foreign investors is that they cannot start a sole proprietorship business in Thailand. Therefore, this calls for the primary requirement of having a Thai shareholder in the business. Additionally, there are restrictions laid by the Foreign Business Act of Thailand that prevent foreign investors from doing business in certain specific industries.

However, such restrictions never prevent a foreigner from doing business in those industries. All they have to do is apply for a foreign business license along with a Thai shareholder. Henceforth, they have the equivalent rights as that of a Thai citizen to register and operate any business in Thailand.

What is the Capital Requirement for Company Registration in Thailand?

The capital requirement for Company Registration in Thailand, the major governing factors are as follows:

1. Type of company you want to register in Thailand – LLP, LLC, Joint Venture, Branch Office, or Representative Office.
2. Number of partners or shareholders in the business.
3. Number of foreign employees you want to bring to Thailand.
4. Your Nationality! It is because if there exists any double-tax or bilateral trade treaty between your nation and Thailand, you may get some investment benefits.

Based on these primary pointers, you can calculate the capital requirement for Company Registration in Thailand. To reach the exact figures,  you must consult with a corporate law firm with special expertise in Thai accounting and tax standards and protocols. 

Please note that the Capital Requirement for Company Registration is not the same as the cost to register a company in Thailand.

Capital Requirement is the funds that you need to be ready with as per the regulatory and authority norms. Furthermore, it depends upon the type of business you want to do in Thailand. On the other hand, the cost of registering your company in Thailand involves the expenses behind the capital requirement along with the cost of leasing or purchasing business premises, license fees, consultation and travel expenses, etc. We can help you identify the difference in these figures. Simply email us at officer@konradlegal.com with your company registration plans in Thailand. 

How to expand existing business in Thailand?

If you already own a business in your native country or anywhere in the world, you can easily expand its branches in Thailand. There are various methods to do so. The easiest forms that enable a foreign investor to have 100% foreign ownership in their business in Thailand are as follows:

The first option is opening a Representative Office in Thailand. It grants 100% foreign ownership and the cost of incorporation of such a company is lesser than other business forms. However, there is a restriction! You cannot conduct any financial transactions like selling products or services through a representative office.

Secondly, you can start a branch office in Thailand. Through a branch office, you can execute trading activities. However, there is an initial permission to operate for 5 years that is subject to extension, under the discretion of the Department of Business Development in Thailand.

Other methods of introducing your business in Thailand are through a Regional Office, or by online promotions.

How much time it takes to register a company in Thailand?

Again this depends on the type of company structure you are planning to register in Thailand. A simple limited company registration can be completed within 5-7 working days, whereas, a higher form of business structure can take up to  60 days to register.

Furthermore, registration of non-profits, foundations, or associations can take more than a year to complete and start functioning in Thailand. Additionally, this tenure also depends upon the level of your readiness with funds and regulatory compliance at the time of registering your company in Thailand.

What are the most important factors to keep in mind during Company Registration in Thailand?

You are a business aspirant, therefore, explaining to you to be careful about documentation, truthfulness or other similar stuff won’t make any sense. That’s what we believe in owning to the faith in your potential.

As a leading corporate law firm in Thailand, we take it to be our pleasure to guide you through the mistakes that we have seen many foreign investors make. So with the wish that you don’t repeat the same, we are listing the same as follows:

• Never think of opting for a Nominee Shareholding structure for your business in Thailand. It is strictly forbidden as per Section 35 of the Foreign Business Act and can attract imprisonment of up to 3 years and/or a penalty of up to 1 million Thai Baht.

• Never think of concealing or falsifying your identity for company registration in Thailand as this can lead to grave legal and administrative sentences.

• During the running of your business in Thailand, if your foreign business license gets suspended or revoked for any reason, stop using it immediately. Otherwise, you will be sentenced to imprisonment and a penalty worth up to 1 million Thai Baht.

• If you hold a valid foreign business license for a particular business, but participate in a business activity under another license permitted to carry different trade, it is illegal. You may attract a penalty of up to 1 million Thai Baht and imprisonment of up to 3 years.

• A penalty of up to 1 million Thai Baht and imprisonment of up to 3 years is applicable if you plan to operate a business in Thailand without a proper foreign business license.

• In many cases, there are various business operations or activities that are open only to Thai nationals. However, you may be involved in those businesses with prior approval from the Director-General or Ministry of Commerce. Without this approval, starting or operating any such business is a big offense in Thailand attracting penalties and imprisonment.

Therefore, we always advise our clients to follow Thai regulations and protocols while registering and operating a business in Thailand. There are various advantages of doing business in Thailand, and the kingdom welcomes foreign investors with open arms, but, the laws are pretty stringent here. 

To access all solutions under one roof, reach out to us. Along with holding an identity as a leading corporate law firm in Thailand, we have professionals holding expertise in accounting, taxation, and payroll services for foreign investors in Thailand.
Email us your business plan at officer@konradlegal.com and our team will get in touch with you within a working day.