How to Set Up a Limited Company in Thailand – What you Need to Know

Many foreigners love Thailand so much that they decide to relocate and set up a business in this amazing country and who could blame them?

Thailand has much to offer foreigners and many European men end up marrying a Thai female and making Thailand their forever home.

So, if you have a great business idea and are ready to start the ball rolling, the first step is to contact an English-speaking Thai lawyer who has experience setting up businesses for foreigners.

Here's a quick overview:

1. Consult a Thai Lawyer:
   Hire an English-speaking Thai lawyer who is experienced in foreign business setups.
2. Secure a Thai Partner:
   Find a Thai partner, ideally a spouse, to hold 51% of the shares.
   If unavailable, a proxy shareholder can be arranged through your lawyer.
3. Check Board of Investment Regulations:
   Visit the Board of Investment website to verify eligibility for foreign involvement in your chosen business sector.
4. Ensure Compliance:
   Hire a lawyer to maintain legal compliance.
   Employ a local bookkeeper/accountant for financial records and tax returns.
5. Consider Real Estate Ownership:
   Foreigners cannot directly own land.
   Acquire land through the company or lease it for a long-term period.
6. Prepare Registered Capital:
   Have 2 million baht ready as registered capital.
   Employ at least 4 Thai staff before hiring foreign employees.
7. Complete Registration Process:
   Work with your lawyer to prepare documents, open bank accounts, and deposit funds.
   The registration process typically takes about a month.

Now let's discuss these important steps in detail:

Sourcing a Thai partner

To create a trading business entity, you will need a Thai partner; your Thai spouse is ideal; according to Thai law, 51% of company shares must be owned by a Thai(s), while you can hold the remaining 49%. If you are not in a relationship with a Thai citizen, your lawyer can source a Thai person to be a proxy shareholder. Once the company is officially registered, you can rent a meeting room in Korat and interview locals for the various positions the business requires.

Board of Investment, Thailand

Check out the Board of Investment website that contains information concerning setting up a business entity and check to see whether your chosen business sector allows for foreign involvement. Some sectors are protected and only Thais can enter the industry, so do check before going any further.

The importance of compliance

Hire an English-speaking lawyer and they can ensure that your company is always compliant with local laws. A local bookkeeper/accountant can maintain the company books and file your annual tax returns, while your lawyer will make sure that your work permit and visa are up to date. Tax levels are relatively low when compared to developed countries, which is a refreshing change.

Real estate acquisition

You may already know that foreigners are not permitted to own land in Thailand’ you can, however, buy real estate in the name of the company, provided the business entity is trading. Indeed, many foreigners used this route to secure the land they needed to build their dream home; the other option is to lease a plot of land for 30 years, with the option of a further 30 years. Click here to find out about email marketing.

Registered capital

To set up a private limited company, you need to have 2 million baht as registered capital, plus you need to employ a minimum of 4 Thai people before you can hire a foreigner.

Before doing anything, you should consult with a Thai business lawyer, a legal professional who can help you to prepare the documents, open bank accounts and deposit money. It takes about one month to complete the business registration process, then you are ready to go.

We hope this article goes a long way towards giving you an insight into setting up a business in Thailand and we wish you all the luck in the world.