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In Thailand, the business form the most popular with foreigners is the private limited company (SARL equivalent in France).
With the exception of U.S. citizens, who benefit from preferential agreements with Thailand, it is impossible to be an immigrant from Western individual entrepreneur in the Land of Smiles. All fall back on the only option remaining consistent, the private company with limited liability.
The reasons for foreigners to set up a limited company in Thailand are varied. For if such enterprises are often created to develop a professional activity which will ensure the main source of income of the creator, he is also to cover a number of non-pecuniary objectives:
– To purchase land in Thailand
– Occupy a Thai partner
– Secure a non-immigrant visa to reside continuously in Thailand
– Help a Thai partner to form a solid work history which will eventually immigrate to the West more easily.
This is a first approach to building business in Thailand: the latter does not make you an expert but will give you a good base to start your thinking.
Be aware that starting a business in Thailand can quickly become a legal headache for a farang who does not control additional Thai. It is essential that you get help for a lawyer or a qualified accountant in your efforts. The latter will be able to teach you all the tricks and supplement with and for you all required documents in Thai.
In addition, some activities are strictly forbidden to foreigners in Thailand. See the list of unauthorized activities before engaging your efforts. It would be unfortunate to lose your time.
Finally, note that if a farang can be single largest shareholder and a production company (factory), it may not hold more than 49% of a company selling goods or services. You must therefore involve Thai to your project. However, most Westerners did not want to lose control of their businesses rely on nominees.
Creating a Limited Company in Thailand
To create a Private Limited in Thailand, you must commit yourself to capitalize to the tune of 2,000,000 THB (€ 50,000). 25% of this sum will be given at creation.
Therefore, you will be able to raise 12,500 euros for the starting capital of your Limited. This amount is not blocked in an account and can therefore be used to adjust the investment and corporate spending.
The 25% stake in your company will be deposited on behalf of your company within 90 days of its creation. You will need to justify that these funds come from abroad.
But beware! This does not mean that your company will cost you only 12,500 euros: this minimum capital base, you must add all the administrative costs for the various steps of creating your structure (reserving the name of your company drafting of statutes, general meeting of incorporation, legal registration, tax registration (tax and VAT )….).
– Fee 500 THB 100,000 THB per capital (ie 10,000 THB for a capital of 2,000,000 TH:cool:
– Other administrative costs: about 2,000 – 2,500 THB
– Support the establishment by an expert: 7,000 – 16,000 THB
The company premises
As Private Limited, your company must provide proof of business address (you can not domicile in your home).
The location of your business premises is not trivial since different jurisdictions will determine the land on which you depend.
The price of a local professional varies. You will sign a one year lease and pay a deposit equivalent to two months’ rent.