Register a Company in Thailand in 2023

 

Thailand’s extensive regulations and language requirements make starting a business a challenging task. You must know that there are some changes in the process of company registration in Thailand in 2023. The amendments may make the process easier or maybe, difficult for you. However, you can successfully complete the process with the help of reliable experts who can speak Thai on your behalf. 

Our qualified Thai lawyers at Konrad Legal Company Limited are committed to assisting you with a successful business start-up. Additionally, we offer a thorough one-stop solution that includes advice for foreigners looking to invest in or obtain licenses in Thailand as well as aid with tax benefits under the Board of Investment in Thailand (BOI). This article will outline the most current changes to Thai legislation regarding company registration regulations, which take effect on February 7, 2023.

Click the link to know the general rules of company registration in Thailand in 2023

Here are the Updates on Company Registration in Thailand in 2023!

Promoters and Shareholders

A minimum of two natural individuals must act as promoters in order to register a company in Thailand. To represent the company, these promoters must be at least 21 years old and legally able to do so. Promoters often own an equal portion of the business, with the ability to sell shares to third parties when the company is registered. Also, there must always be a minimum of two shareholders for the duration of the business.

Director(s)

To oversee the company’s activities and represent it, the shareholders must appoint at least one director.

Registered Office

The head office of your business must be in Thailand. A copy of the house registration (Tabien Baan) number must be provided. A letter of consent from the landlord is necessary if you’re renting office space.

Minimum Capital Registration

Foreign companies must have a minimum registered capitalization of 2 million THB in order to operate in non-restricted areas. The minimum capitalization requirement for companies operating in restricted industries as defined by the Foreign Business Act is 3 million THB. Thai-owned businesses are immune from these rules, but they still need to be financially stable in order to maintain work visas for international employees.

Statutory Meeting

As part of the procedure to register a company, a statutory meeting must be called.

Bank Certification

Thai shareholders with foreign shareholders are required to have a letter from the bank validating the amount of money in their personal bank account.

Signing of Application Documents

In Thailand, all shareholders, initial promoters, and directors must sign the necessary application paperwork. Click the link for the final checklist of documents required for company registration in Thailand.

Foreign Business License

Before starting operations, you must get a Foreign Business License (FBL) in Thailand. However, this is mandatory only if your company is classified as limited under the Foreign Business Act of Thailand. The FBL approval procedure may take three to six months.

Conclusion

A successful business creation requires an understanding of Thailand’s procedures for company registration. You can speed up the registration process by making sure that the required minimum of promoters and shareholders is met, appointing a director, establishing a registered office, achieving the capitalization criteria, and completing the required documents and certification procedures. 

Konrad Legal Company Limited offers thorough help and direction during the entire process. Please see our dedicated page for company registration in Thailand or contact our team for more information. We will surely help set up a company limited with 100% or a majority of shares held by a foreign business. You can also email us at officer@konradlegal.com and our team will get back to you within 1 business day!

Originally Published on 24 June 2023 by Konrad Legal Company Limited

Start a Brewery in Thailand

 

Your plan to start a brewery in Thailand is surely going to multiply your dollars in a very short span of time. Want to know the reasons? Here they are:

• Revenue generation increased by 5.39% in the segment in the last fiscal
• People spending on the purchase of Alcoholic Beer increased by 5.17% in 2021-22
• 65.8% of Thais who consume alcohol regularly prefer Beer
• Thailand’s Beer and Cider market expects to gain a CAGR of more than 7% by 2027

These are not stories, but, trustworthy data coming from reliable sources like Statista, KPMG, and Kadence International. We express our gratitude for that. The Thai market holds the potential and has growth opportunities with multiple prospects of expansion if you brew here. But before all, you must know about the process to start a brewery in Thailand.

The Process to Open a Brewery in Thailand

To start a brewery in Thailand, you need to fulfill several legal requirements and obtain the necessary licenses and permits. Here are some key legal considerations:

Register a Thai Business Entity

Register your business entity in Thailand with the Department of Business Development or the Board of Investment in Thailand. The most common business types are a private limited company (Co., Ltd.) or a public limited company (PLC).

Obtain the Brewing License

Apply for a brewing license from the Excise Department, which is responsible for regulating the production and distribution of alcoholic beverages. This license allows you to legally produce beer in Thailand.

Apply for Excise Tax License

Obtain an excise tax license from the Excise Department. This license is necessary for paying excise taxes on your beer production and sales. The tax rates may vary depending on the type and alcohol content of the beer.

Obtain the Food and Beverage License

Apply for a food and beverage license from the local health department or municipality. This license ensures compliance with health and safety regulations, including sanitation and food handling practices.

Label Approval

Submit your beer labels to the Excise Department for approval. The labels must meet specific requirements, including accurate alcohol content, ingredients, and warning labels.

Apply for Trademark Registration

Consider registering your brewery name, logos, and brand trademarks with the Department of Intellectual Property to protect your intellectual property rights.

Ensure Compliance with Regulations

• Ensure compliance with local regulations regarding wastewater management, waste disposal, and environmental impact assessments.
• Follow advertising and labeling regulations related to alcoholic beverages.
• Comply with health and safety regulations to ensure a safe working environment for your employees and the quality of your products. This includes adhering to sanitation standards, maintaining proper storage facilities, and implementing safety protocols.

By now, it must be clear to you that there is a great deal of legal and regulatory compliance associated with the process. Therefore, before you put the first step to starting your brewery in Thailand, you must consult with a professional Thai corporate law firm. Email us at officer@konradlegal.com so that we can be by your side to enable you to start brewing in Thailand!

Tax Benefits in Thailand for Startups

 

Tax liabilities can take a different disguise altogether if you are not knowing the regulatory norms. Even if you pay on time, non-adherence can lead to some sort of fine or penalty, or litigation. Similarly, there are a few obligatory aspects that can help you save taxes. In this article, we will explain to you the tax benefits in Thailand for Startups and CVCs. But please note that Tax Regulations in Thailand are very stringent and you must hire reliable Thai tax firms to manage everything smoothly.

Not only startups but there are also provisions of tax exemption for investors on their funding to startups in Thailand. Any person or organization who directly or indirectly invests in Thai startups in form of Venture Capital (VC), Corporate Venture Capital (CVC), or Private Equity Trusts, all are eligible for tax benefits in Thailand. These exemptions hold approval vide a draft Royal Decree of the Thai Revenue Code. This Draft Royal Decree seeks to repeal Royal Decrees No. 597 (B.E. 2559) and No. 636 (B.E. 2560), which prohibit capital gains tax on investments in startups.

The Draft Royal Decree in the Government Gazette is applicable until June 30th, 2032 for all startups and investors. The government expects that these tax advantages will make it easier for Thai startups to attract more funding. Henceforth, this will result in a faster expansion of Thailand’s GDP and a rise in employment.

Let’s take a quick glance through the norms of eligibility for tax benefits in Thailand for startups and investors.

Eligible Startups

A startup must engage in the targeted activities of the “Target Industries”. This classification holds the endorsement of pertinent government agencies. The Committee on Policy for National Competitive Enhancement for Targeted Industries mandates this categorization. Note that, the startup business must rely on technology as the foundation for its production process and services. Additionally, it must be in accordance with rules established by the Director-General of the Revenue Department. The National Science and Technology Development Agency (NSTDA) and the National Innovation Agency (NIA) are the government entities in charge of issuing the certification of the target activities.

Eligible Target Investors for Tax Benefits in Thailand

The Draft Royal Decree requires that all target investors qualifying for income tax exemptions must hold shares of the startup, CVC fund, or PE Trust for at least 24 months prior to the transfer of shares. Additionally, they should refrain from exercising their rights under the earlier Royal Decrees No. 597 (B.E. 2559) and No. 636. (B.E. 2560).

• Either abroad or in Thailand, an investor can register a CVC fund or PE Trust. On the final day of each month, to comply with Thai legislation, the CVC fund or PE Trust must have paid-up capital.
• Additionally, they have to file Accounts with the Securities and Exchange Commission for a financial period of THB 20 million or more.
• Individuals or corporate entities that solely participate in Thai CVC funds and Thai PE Trusts must be shareholders of the CVC fund or unitholders of the PE Trust.

Inability to comply with these regulations will lead to termination of tax exemption for CVC fund or PE trust.

Tax Benefits in Thailand: Terms and Conditions

Direct Investment

If a startup engages in the Targeted Industries and generates at least 80% of its total revenue from the target activities in the two preceding accounting periods prior to the transfer of shares, then a person or a legal entity registered in Thailand or abroad will be eligible for income tax exemptions on the gains from the transfers of shares in that startup.

Indirect Investment through VC

Tax benefits for VC funds will vary depending on the degree of investment made by the PE Trust and CVC fund. Additionally, it depends on the level of investment made by CVC fund shareholders and PE Trust unitholders. The following illustration will make things more clear:

Tax benefits in Thailand for CVC and PE Trust

If a startup generates at least 80% of its revenue from the targeted activities in each accounting period for two consecutive accounting periods prior to the transfer of shares, the CVC fund will benefit from exemptions from corporate income tax on the gains from the transfers of shares in that startup.

There is no corporate income tax for PE Trusts.

Tax benefits in Thailand for shareholders of CVC funds and unitholders of PE Trusts

Tax breaks will be given to PE Trust unitholders and CVC fund shareholders on the following:

Gains from transfers of shares in CVC funds and PE Trusts, where the investors in the CVC funds and unitholders in the PE Trusts will receive personal or corporate income tax exemptions in proportion to their investments, provided that such startups generate at least 80% of their income from the target activities during each accounting period for two successive accounting periods prior to the transfer of shares.

Gains from the dissolution of CVC funds and PE Trusts based on the percentage of retained earnings received from the startups’ target activities, provided that these startups generate at least 80% of their income from the target activities each accounting period for two consecutive accounting periods prior to the dissolution.
Startups confront legal challenges, which Konrad Legal Company Limited is aware of. Your company can achieve its objectives with the assistance of our Legal, Accounting & Tax Professionals for Startups in Thailand, including learning how to successfully draw in new investors. Call us right away for further details. You can also email your concern to officer@konradlegal.com.

Top Five Tech Start-Ups From Thailand

Thailand's entrepreneurial landscape has grown recently. The reason being the rapid introduction of over 2,500 companies. Over here, we are going to discuss the top 5 Thai tech start-ups that made an impact.

 
1. ACommerce

ACommerce is a full-service e-commerce solution provider that was founded in June 2013. The mission of ACommerce is to break the logistics bottleneck of Southeast Asia. The objective of the company is to provide an end-to-end solution to the e-commerce clients that would bring the brands and the retailers in one space. Recently, ACommerce has signed a strategic partnership with DKSH, a Swiss-based market expansion service provider.


2. ClaimDi

This amazing mobile application was developed by Kittinan Anuphan. Any car owner who downloads this app will be able to claim his/her insurance within 15 minutes of the accident scene. The app is well-connected with around 15 insurance companies. One of the striking features of the app is the “shake and go”. With this feature, two parties concerned in the car accident can simultaneously claim for the insurance. The future plan is to provide service nationwide and in overseas market of Malaysia and South Korea.


3. Skootar

If you want to find a cheaper and more reliable messenger services in Thailand, download the Skootar app. This app was created by Suwatt Pathompakawan. The services of the app include delivering and picking up documents, cheques, invoices, food, postal documents and other sorts of billing payment. It easily matches a customer with the messenger in no less than 15 seconds. Each service of the app costs around 200 baht that you will be charged at the end of the month.

4.ZmyHome

This amazing portal is exclusively created for homeowners who want to list their property for sale or rent. The portal does not involve any agent. The portal offers services that include home valuation, market monitoring, mortgage centre, escrow account, etc. The main objective of this portal is to eliminate high commission and liquidity of the real estate market in Thailand.


5. Maker Zoo

This start-up offers 3D printing services to inspire people to create their own products. The user will have access to produce various designs. The focus of Maker Zoo is on providing knowledge, tools and skills for the development of products.

These amazing start-ups have brought a technology transformation in Thailand.