Thai Limited Company – Structure Details
Without needless hassle, register your Thai private limited corporation. Simply select a name and location for your new company, and we’ll take care of the rest. The time it takes to register a company can be as low as one week.
Due to its ease of setup and shareholder protection, the Thai limited company is the most widely used business form for company registration in Thailand. The Department of Business Development of the Ministry of Commerce handles Thai limited company registration, which takes no more than one week. e commerce license thailand
Overview of a Thai Limited Company
How the Company Registration Process Works
It is straightforward to register a Thai private limited liability business with us. You only need to give us information about your new firm once you have chosen a name and obtained an address. The documentation will thereafter be handled by us on your behalf.
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Thai Limited Company – Structure Details
Shareholders & Shareholding
A private limited corporation must have a minimum of three promoters in order to be registered. Promoters are stockholders who sign the business registration documents required for a firm's incorporation; they must all be actual people. Shares may be transferred to businesses, legal entities, or other individuals, Thai or foreign, following the company's initial registration with the Department of Business Development (DBD). So that you may continue to be completely compliant with the procedure, the legal professionals at Thaipan Legal can offer the necessary direction and legal assistance on a step-by-step basis.
One or more directors must be chosen by the shareholders. The person legally authorized to sign documents and act on behalf of the company is a director, who is also qualified to be one of the promoters at the registration of the company. A valid work permit and visa are required if the director of the Thai limited company is a foreign national in order for them to be able to lawfully operate for the firm in Thailand (see Immigration).
The fundamental advantage of setting up a limited company in Thailand is that shareholders' exposure to the debts or creditors of the firm is restricted to the amount they invested in the company. However, directors are not covered by this company's shareholders' limited liability during their tenure as directors or within two years of the date of their resignation. To ensure that everyone is aware of their legal responsibilities inside the established company, Thaipan Legal may help when creating a company in Thailand by outlining in paper each party's rights and obligations. When needed, the DBD can be contacted for this information, which is kept on file with the registrar.
Obligations After Registration
The Thai limited company must adhere to the accounting procedures outlined in the Civil and Commercial Code, Revenue Code, and the Accounts Act once it has been registered and is ready to conduct business. Each accounting period must have a balance sheet, a profit and loss statement, and an audit completed at the end (this is decided during the company registration procedure). Inaction will result in financial penalties for the company.
There are several common types of Thai limited companies, including private limited companies, public limited companies, and companies with foreign ownership. Private limited companies are the most common and are limited to 50 shareholders. Public limited companies can have an unlimited number of shareholders, and their shares can be traded on the stock exchange. Companies with foreign ownership must comply with additional legal requirements and restrictions.
When deciding between a Thai limited company and a partnership, it is important to consider the level of liability protection and the structure of the business. A partnership is a business structure where two or more individuals own and operate the business together, and they are jointly and severally liable for the debts and obligations of the business. A Thai limited company offers limited liability protection to its shareholders and can have multiple owners without the same level of personal liability.
Depending on the number of foreign partners, a Thai limited company has different capital needs. The company must generally have 2 million THB in registered capital to be qualified to issue work permits for each foreign employee (including directors) (see Work Permit for a complete list of requirements and potential exceptions). Fortunately, this only signifies the company's limited liability and does not require the shareholders to raise all necessary funds at once. While there is no minimum capital requirement for Thai limited companies without any foreign shareholders, the starting capital should accurately reflect the business model of the company.
Company Registration Process
A Thai limited company is a popular business structure in Thailand for both local and foreign investors. It is a legal entity that has a separate identity from its shareholders and offers many benefits, including limited liability protection and the ability to raise capital through the sale of shares.
One of the main advantages of registering a Thai limited company is that it offers limited liability protection to its shareholders. This means that the shareholders are not personally liable for the company's debts and obligations beyond their initial investment. Additionally, a Thai limited company can issue shares to raise capital, which can be used for business expansion or investment opportunities.
The process of registering a Thai limited company involves several steps. The first step is to choose a name for the company and submit it for approval to the Department of Business Development. Once the name is approved, the company's articles of incorporation must be drafted and signed by the shareholders. The company must also have a registered office and appoint directors and a company secretary. Finally, the company must register with the Revenue Department and obtain a tax ID number.