Company Formation in Thailand

How long does it take to form a company in Thailand?

Incorporation in Thailand is relatively fast. The effectiveness of the process boils down to one thing: ‘When are the necessary (basic) documents ready?’. The process is counted from the moment we have all the needed documents. Please consult with our consultants to understand what documents you need to kick-start the process and draw a roadmap for your project.

• 5-10 working days if done locally provided all requirements are met;
• 7-15 days if done remotely;
• Note: Process includes securing a POA and execution of the Memorandum of Association.

Procedure to prepare the registration of a company in Thailand

The registration process of a company in Company Formation in Thailand with LegalBison is very simple. We assist in drafting all the necessary documents and guide you in providing the ones that shall come from your side. Once the documents are ready and payment is done, LegalBison takes care of the entire registration process on your behalf.

Can I form a company in Thailand remotely?

Remote incorporation is possible since Thailand has allowed the use of e-signature. However, there may be cases, post-registration, that require traveling to Thailand.

Necessary information to begin with company formation in Thailand

• 3 options of your desired name for the company and a company contact email address;
• Names, addresses, and emails of all shareholders and board members;
• Short description of your company’s activity.

Without VAT number in Thailand

Companies that do not reach the income threshold are not required to register for VAT; they can neither charge VAT nor claim it for input tax.

With VAT number in Thailand

Every company must register for VAT before its operation or within 30 days of reaching the income threshold of 1.8 million baht.

• Generally, the rate is at 7%. Some activities specifically identified are liable at a rate of 0%;
• VAT returns and payments are to be filed on a monthly basis;
• Note: If your chosen business is among the industries/activities that are exempt from VAT, you will be required to pay the Specific Business Tax (SBT) instead.

Required documents to provide to register a company in Thailand

• Passport copies (scans) of all individuals mentioned above and a beneficiary owner if applicable;
• A Power of Attorney (POA) from (all) partners/shareholders is needed (in case of a remote company registration);
• Certified company documents (in case at least one of the shareholders is going to be a foreign company).

Taxation of companies in Thailand

Corporate income tax is at the rate of 15% if net profit is at least 300,000 to 3 million THB or at the rate of 20% if net profit is more than 3 million baht.

• The rate may be lower than 15% under special circumstances depending on how the income is sourced;
• Dividends are also taxed at the rate of 10%;
• For purposes of payment of CIT, companies will have to estimate their annual profit and pay half of the estimated tax liability within two months after the first half of its accounting period.

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DTAA signed by Thailand for companies

Similar to other jurisdictions, Thailand also has Double Taxation Agreements (DTAs) with various countries:

Armenia, Australia, Austria, Bahrain, Bangladesh, Belarus, Belgium, Bulgaria, Cambodia, Canada, Chile, China, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Great Britain and Northern Ireland, Hong Kong, Hungary, India, Indonesia, Ireland, Israel, Italy, Japan, Korea, Kuwait, Luxembourg, Malaysia, Mauritius, Myanmar, Nepal, Netherlands, New Zealand, Norway, Oman, Pakistan, Philippines, Poland, Romania, Russian, Seychelles, Singapore, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Chinese Taipei, Tajikistan, Turkey, Ukraine, United Arab Emirates, United States of America, Uzbekistan, and Vietnam.

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Accounting and audit requirements for a company in Thailand

The accounting period is 12 months. Filing of tax returns is bi-annual.

The mid-year tax return must be filed and paid within two months from the first six months of the accounting period and the year-end tax within 150 days from the closing of the accounting period.

Books must be maintained according to relevant accounting procedures required under the Civil and Commercial Code. It may be stated in other language other than Thai, but a Thai translation must be attached.

Financial statements which must be audited by a certified auditor must also be filed annually with the Department of Business Development (DBD).

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Economic substance and residency requirements for companies in Thailand

A limited company may be owned wholly by foreigners, hence, there is no residency requirement for this.

However, for business activities reserved for Thai nationals, 51% of it must be owned by Thai nationals and only 49% is available for foreign subscriptions.

LegalBison offers help with all of the above requirements. We assist and are local on the ground. Speak now for free with one of our consultants to get your business started.

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