If you're thinking of starting a business in Thailand, you should hire an accountant to help you navigate the legal system. Companies in Thailand are required by law to pay taxes, and non-payment can result in heavy fines, work permits being revoked, asset seizures, and even shutting down the company. The corporate tax rate in Thailand is 20 percent, but you can get a tax exemption if your net profits are below THB300,000 per year. However, you'll have to file corporate income tax returns twice a year. You'll also have to pay VAT, which is calculated on sales of goods and services.
If you're looking to start a new business in Thailand, you'll need to register a company. In order to register a Thai company, you'll need to fill out a few documents. The first is a company name reservation form. This form is essential in making sure your business has a clear identity in the marketplace. Next, you'll need to draft and submit your articles of association, which outline your company's mission and the responsibilities of the board of directors. These documents must be submitted to the Business Development Office, Thailand's authority for registering new companies.
If you're a foreigner, you'll also need to meet Thailand's tax and trade requirements. You can set up a Thai company if you have the capital and desire to operate in this market. However, you need to find a suitable location that will give you visibility in the Thai market. You can hire a due diligence service to help you select the right location for your business. This will help you avoid unpleasant situations. Also, you'll need to follow the rules and regulations for tax reporting and VAT, which will be applicable in Thailand.
Minimum share capital when registering a company is an important requirement to meet when creating a company in Thailand. The amount of capital varies between different kinds of companies, but in general, the capital amount must be at least two million Baht per share. In addition, you must ensure that each promoter holds at least one share in the company. The capital amount must also be included in the first annual report.
A foreign company must have at least two million baht in registered capital, though this amount may vary. Regardless of the reason, it's important to remember that you can't issue shares with less than THB 5. Similarly, you should not issue shares with a par value of less than THB 5, and you should avoid treasury shares. The minimum share capital is also important when registering a company in Thailand because you will need to have enough capital to operate the company.
A registered address is needed to establish a business in Thailand. An apartment or condominium unit is not an acceptable registered address, as these are generally used for residential purposes. The registered address must belong to a legal owner, who must provide documents verifying ownership and the consent to register the business. The cost of using a virtual office address is typically less than 2,000 Thai baht a month.
Changing the registered address of a company in Thailand is relatively easy and fast. However, you must make sure that you notify the Department of Business Development (DBD) of the new address. The new address must be included on any business licenses, work permits for foreign employees, and bank accounts held in the company.