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Tila Legal specializing in Company Registration in Thailand

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October 17, 2016


Thailand’s economic growth over the past years has attracted investors to the country. Strong government support, a cost-effective and capable workforce, adequate infrastructure, distinct policies regarding free trade and liberalization and Thailand’s strategic position in Asia as well as political stability encourage foreign investors to build their own business in the country. Company registration Thailand involves choosing the kind of business organization you want to establish. You can register your business as Limited or Ordinary Partnership, Representative Office or Limited Company.

Ordinary Partnership

Ordinary Partnership is set up by 2 persons who are joint partners. They share unlimited liability for all the obligations of their partnership. While it’s not mandatory to register this kind of business, you can still choose to do so. Each partner is individually and jointly accountable for taxes and debts of the partnership as well as their co-partner’s tortuous act or crime. Unless otherwise stated in the partnership agreement, no other person can become a member of the company without permission of all partners.

Limited Partnership

Limited Partnership, on the other hand, is quite similar to an Ordinary Partnership. One difference between the two is that Limited Partnership provides for 2 kinds of partners – one partner whose accountability is unrestricted and another whose liability is limited. Limited Partnership also needs to be registered.

Representative Office

Representative Office requires a Foreign Business License. This kind of business sources services and products in Thailand, reports on business movement in the country, provides advice related to goods that are being sold to customers and distributors, controls and examines the quantity and quality of products bought or ordered to be made in the country and introduces information about new services or goods.

Limited Company

Limited Company is the most popular type of business in Thailand due to its flexibility. It is formed with a capital distributed into equal shares. The shareholders’ liability is also limited to the amount unpaid on their shares. In order to register a Limited Company, you need to have at least 3 promoters, an auditor, a director, a statutory meeting and memorandum of association. The incorporation papers should be registered as well. It is important that you follow all accounting processes and file a balance sheet every year with the Department of Revenue and Commercial Registration. You also need to withhold income tax from the wages of regular employees.

To make the whole process of company registration Thailand easier, working with a lawyer is advised. Setting up a business in Thailand can be complex and take weeks due to the forms and documents being in Thai as well as the registration procedures. Having someone who can communicate in Thai for you will make everything less stressful for you. He should be able to handle all the legal points of establishing a business in Thailand. A licensed lawyer must be capable of giving you important pieces of advice about registering a business in the country. Reading reviews about the lawyer you are interested in can help you decide whether getting their service is really worth it or not.

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