Registering a company in Thailand, as well as opening an account with a Thai bank will be a great idea for a startup in 2021.
Thailand is an independent Asian state, occupying territories in the north of the Malay Peninsula and in the southwest of the Indochina Peninsula. The capital is Bangkok. An official language is Thai. The country's currency is Thai Baht (THB).
The main sectors of the economy are: an agriculture, a food industry, a tourism, a light industry, an extraction of natural resources (gas, oil), an automotive industry.
Thailand is a member of the ASEAN, APEC, BIMSTEC, ICRC, Asian Development Bank and other international organizations.
Key features of a jurisdictionThose, who are going to register a company in Thailand, are invited to familiarize themselves with a list of key advantages of the Kingdom:
- a stable economic growth;
- a solid political position;
- a good ecology;
- an affordable pricing policy;
- a high level of development of medicine;
- the availability of available labor resources;
- the interest of authorities in attracting foreign capital;
- a flexible tax system;
- an opportunity to purchase an existing company in Thailand;
- DTA agreements with more than 48 countries in Europe and Asia.
If you want to open a company in Thailand remotely, we recommend you to consider the following business areas: services, a hotel business, a furniture industry, a trade, a food production, a restaurant business, IT technologies.
Types of business in ThailandThose, who wish to set up a company in Thailand firstly will need to decide on the most acceptable form of economic activity. The following types of business exist in Thailand:
- Private Entrepreneur (SP);
- Partnership (GP/ LP);
- Public Limited Company (Public LC/Private LC);
- Representative Office (RO);
- Branch (B).
To open a Thai company, many foreign entrepreneurs choose such forms as: General and Limited Partnerships (GP/LP), as well as a Joint Stock Company (Public LC).
Registering a Thai companyIn order to establish a company with 100% foreign capital in Thailand, you will need a confirmation from the Regulator.
If you intend to open a company in Thailand and open an account with a bank in Thailand, then you will need to fulfill the following conditions of the local Regulator:
- A unique name of the company in Thai or English in 3 versions (the end indicates: Ltd/Corp/Co);
- A number of directors is from 1 or more (only individuals of any residency status);
- A number of shareholders is from 3 or more (individuals/companies, residents/non-residents);
- A presence of a registered office;
- Obtaining tax ID;
- Obtaining a Thai business license;
- Accounting and annual reporting is required;
- Conducting an audit.
Taxes in ThailandIf you intend to register a company in Thailand remotely, then first study all subtleties of taxation of the Kingdom. For legal entities in Thailand, the following tax obligations are provided:
- A standard income tax is 20% (a reduction to 2% is possible). Companies with an annual turnover of 300 thousand to 3 million THB pay a tax at a rate of 15%.
- Companies, whose income is less than 300 thousand THB do not pay a tax.
- A VAT is 7% (a reduction of the rate and full exemption from a tax are possible).
- Dividends - 10%;
- Interest - 1%;
- Royalties - 3%
- A stamp duty - 1%.